Where AI Adoption in Procurement Stands Now

At a global CPG company based in the U.S., the procurement team faced a recurring issue: delayed sourcing cycles for packaging materials. They ran a small pilot using an AI tool to screen suppliers. Instead of manually reviewing performance data and certifications across systems, the tool flagged top-fit vendors in minutes. The sourcing lead described the result as “a month of work in a day.” That success helped secure buy-in for broader use.

This isn’t the norm, yet. But it’s a sign of what’s possible.

Across regions, procurement teams are at very different stages of AI adoption.

In North America, many are running advanced pilots.

In Latin America, some have struggled to gain traction. But in both cases, the question is no longer whether to adopt AI. It’s how to move from theory to measurable results.

Adoption Is Growing, but Still Uneven

A recent survey of procurement leaders finds 43% describe their AI implementations as “advanced” or “innovative”. Another 59% say they’re using AI for specific use cases, like supplier discovery or risk scoring, rather than full-scale integration.

In many cases, business users are driving adoption directly, especially in sourcing and supplier management.

Most teams say they’re satisfied with results so far (92% report satisfaction with their AI solutions) but few feel confident in how to measure ROI.

In fact, 9 out of 10 lack strong confidence in their ROI evaluations, and 35% cite a lack of proven examples as a top barrier to further investment.

What Adoption Looks Like on the Ground

One area where AI is gaining traction is supplier discovery and selection.

Here, 77% of teams report successful implementation, often using AI tools to mine past performance, diversity data, and financial health indicators to recommend suppliers.

AI is also helping teams align better with finance and ESG by embedding scoring criteria into selection workflows.

But even as 88% of teams plan to increase AI investments over the next 12 months, gaps remain. In many organizations, AI adoption is still isolated, driven by innovation leads or power users, rather than embedded into everyday workflows.

Regional Gaps, Shared Lessons

AI adoption isn’t happening evenly.

In North America, many procurement teams are already piloting or scaling AI tools to streamline supplier selection, contract review, and intake management and they’re beginning to see measurable benefits. These include shorter RFP cycles, faster approvals, and clearer supplier insights. Teams with executive backing, clean data, and strong ownership are making the leap from experimentation to execution.

In Latin America, however, momentum is slower.

According to recent GEP research, only 15% of procurement teams in the region have adopted AI, compared to 29% globally. Challenges include limited in-house expertise, unclear accountability, and difficulty aligning on business value.

But the lesson across both regions is the same: clear goals, practical starting points, and structured pilots are far more important than geography.

Success isn’t about being first; it’s about being focused.

Actionable Advice for Leaders

For teams still early on the journey, the message is clear: Don’t wait for a perfect roadmap. Instead, start with a specific problem that AI can help solve.

Focus on:

• High-friction processes like supplier vetting, intake triage or PO validation. These are often rich in manual effort and ideal for targeted pilots that build early momentum.
• Embedding AI into existing systems, rather than ripping out legacy platforms. Work with what you have. Many AI tools can sit on top of current ERPs or P2P systems,  augmenting, not replacing them.
• Keeping the implementation team small and cross-functional. Assign clear owners from procurement, data, and IT. Schedule weekly reviews. Treat AI pilots like operational experiments. Fast feedback loops are critical.
• Preparing the data and processes first. Clean, structured inputs and standardized workflows will drastically reduce integration headaches.
• Measuring success in business terms. Avoid digital vanity metrics. Instead, track changes to cycle time, error rates, rework, or supplier performance. When possible, tie gains to existing KPIs that executives already care about.

📊 At a Glance: Where Procurement Stands With AI

(from “AI Adoption and Its Transformative Impact on Procurement”)

• 43% describe their AI programs as “advanced” or “innovative”
• 92% are satisfied with AI’s performance
• 77% have implemented AI in supplier discovery and selection
• 88% plan to increase AI investment in the next 12 months
• 90% lack strong confidence in measuring ROI

Dig Deeper Into AI Adoption Trends

This edition focuses on where and how AI adoption is accelerating, and where it still faces friction. For a broader view across industries and regions, check out a recent GEP-sponsored paper based on research conducted with ProcureCon.

You’ll get valuable benchmarking insights, including what’s working in AI implementation today and where procurement leaders are seeing tangible ROI. The paper covers top-performing use cases, implementation hurdles, and regional patterns in AI maturity, helping you calibrate your own roadmap and investment priorities.

Download the full paper.

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