Ivalua: Slow AI Adoption Disadvantages Procurement Teams

Procurement is facing a make-or-break moment. With agentic AI offering the tools to transform decision-making, supplier management and cost control, a growing number of organisations are already seeing the benefits.

However, according to new research from Ivalua, a global cloud-based spend management software provider, many UK businesses remain stuck at the starting line.

The report, 'From Risk to Resilience: Supercharging Procurement with Agentic AI,' draws on insights from 300 supply chain and procurement decision-makers across the UK.

It finds that only 32% of organisations have deployed AI tools in their procurement and supplier management functions in the last 12 months. While 36% are in the process of implementation, almost one third are still either just considering AI or have no plans to adopt it.

The cost of that delay is starting to show. Over half (55%) of UK businesses now believe their procurement and supplier management functions are at a competitive disadvantage because of slow AI uptake. It’s not just a technological shortfall. It’s a business risk.

Alex Saric, Smart Procurement Expert at Ivalua, explains the danger of delay: "With rising costs, ongoing volatility in trade policies and constant pressure to do more with less, slow adoption of AI isn’t just a missed opportunity, it’s becoming a strategic risk."

Alex adds that those taking action now are already seeing results: "While early adopters use agentic AI to streamline sourcing, automate supplier management and unlock real-time insights, slower-moving businesses are grappling with outdated processes, limited visibility and mounting inefficiencies."

Agentic AI reshapes how decisions get made

Agentic AI refers to a form of artificial intelligence that can operate independently, handling complex tasks without needing constant human oversight.

It works through advanced Large Language Models (LLMs) to collect and analyse data, evaluate choices, make informed decisions and even act on them. These AI agents go beyond traditional automation by helping organisations respond to risks and changes faster, with better context and accuracy.

According to the research, 68% of businesses are either using or actively implementing AI tools in procurement. Among those already deploying agentic AI, the majority report clear benefits: 85% see improved data analysis for decision-making, 83% highlight automation of repetitive tasks and 79% cite enhanced demand forecasting.

Despite this, the divide between early adopters and laggards is becoming more pronounced. While some are pushing ahead, others are constrained by outdated systems and limited trust in AI’s ability to make high-stakes decisions. In fact, 52% of those surveyed say they wouldn’t trust agentic AI to take control during a supply chain crisis.

That scepticism is understandable. AI’s ability to act without human input requires a solid digital foundation—something not all organisations currently have in place. 

Budget commitments rise but trust remains uncertain

There is optimism about the future, though. Nearly three-quarters (74%) of organisations intend to increase spending on AI-powered procurement tools over the next year. A similar number (73%) say they believe agentic AI will transform procurement and supply chains in the long run.

Still, that transformation isn’t guaranteed. It requires more than just investment. As Saric explains, organisations need to “drive adoption, optimise output quality, stay agile and proactively manage compliance and security risks”. Without this groundwork, the tools risk becoming underused or misapplied.

The implication is clear: those that embrace the changes now stand to lead the way, while others risk falling further behind.

Ivalua’s platform, designed to manage all spend categories and suppliers, promises to help businesses boost sustainability, reduce risk and increase productivity. That said, the tools are only part of the equation—adoption and trust are what will define success.

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