How Agentic AI Will Shape The Future of Procurement
At its global virtual event staged earlier this month, Zycus’ Founder and CEO Aatish Dedhia opened with a keynote examining how agentic AI is set to revolutionise procurement.
The event, Unlock Deep Value with Agentic AI in Procurement, saw procurement leaders explore how cutting-edge technologies are empowering the function to thrive in a transformative era. On offer were practical insights, expert-led discussions and hands-on demonstrations designed to drive real business impact.
Attendees heard from an exclusive global network of practitioners, C-suite executives and thought leaders, positioning themselves and their organisations at the forefront of procurement transformation in 2025.
To watch to any of the talks on demand, click here.
The dawn of agentic AI in procurement
Aatish unveiled a transformative vision for the future of procurement powered by agentic AI. This innovative technology promises to revolutionise the industry, delivering unprecedented value and efficiency.
Aatish's vision for the future of procurement is centred on the emergence of agentic AI, which he believes will mark a new era in the industry.
"The year 2025 marks the dawn of agentic AI, not just in procurement, but globally across industries," Aatish stated. He envisions a future where procurement operations run autonomously, achieving in a single day what previously took a month.
While generative AI applications that simply understand and generate content, agentic AI represents another significant leap forward.
Aatish explained: "Agents are autonomous systems designed to accomplish multi-step goals and make decisions within procurement processes."
Zycus: Pioneering AI in procurement
Zycus has been at the forefront of AI integration in procurement for several years.
Aatish highlighted the company's early adoption of AI technology: "At Zycus, we just don't believe in AI, it has been central to our solutions long before AI became a popular buzzword.
"If you go back in 2018, Zycus launched a complete Merlin suite of AI across the entire source-to-pay suite well ahead of the advent of Chat GPT."
This early investment has given Zycus a significant advantage in the industry. The firm has built a large talent pool of AI professionals and created comprehensive, curated training datasets, which are crucial for developing effective AI solutions.
Balancing autonomy and control
At the heart of Zycus's agentic AI strategy is the Merlin Agentic Platform.
Aatish described this platform as a solution that "balances autonomy with control enabling organisations to harness AI while maintaining the oversight of the entire document process".
The platform's architecture includes:
- Source-to-pay functionality and Gen AI apps
- A library of agents
- An agent orchestration layer
- Agentic flows representing personas (e.g. buyer persona)
This comprehensive approach allows organisations to customise AI-driven workflows to suit their specific needs and processes.
Transforming procurement processes
Aatish emphasised that agentic AI will not only improve efficiency but also "unlock deep value by reshaping procurement processes from the ground up, delivering 10 x returns."
This transformation is expected to make procurement a more engaging and efficient experience.
Two key applications of agentic AI in procurement were highlighted:
1. Merlin Intake Agent
The Merlin Intake Agent acts as an intelligent front door for procurement, guiding business users through processes.
Aatish explained: "This shows significant value through proper buying channels and also enhances user satisfaction and system adoption."
Unlike bolt-on solutions, Zycus offers an integrated built-in intake agent that leverages hundreds of APIs and AI capabilities to provide a comprehensive guiding agent for business users.
2. Merlin Negotiation Agent
The Merlin Negotiation Agent is designed to deliver significant savings through autonomous negotiations.
Aatish noted: "This transforms traditionally unmanageable tail spend into valuable resources for autonomous negotiation. Just think even a modest 2% savings in tailspin categories can translate into millions of dollars in additional value."
The future: A hybrid workforce
Aatish foresees a future where human procurement professionals work seamlessly alongside AI agents.
This hybrid approach is expected to allow procurement teams to focus on strategic thinking and deliver real value, while AI agents handle routine tasks.
Aatish concluded: "Zycus envisions agents that embody certain personas taking on multiple tasks for specific roles. For example, there could be a buyer agent or an AP agent, which will handle routine work and allow your team to think strategically and deliver real value."
To listen to the full keynote, along with a range of talk from leaders in procurement, click here.
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