Blog
Maximising Returns from AI in Procurement
By Mark Hubbard |
Artificial Intelligence holds extraordinary promise for procurement—and we are only at the beginning of understanding its true potential. Just as earlier waves of automation reshaped how we work, AI will open new opportunities, but it will also bring fresh challenges that we must be ready to manage.
Learning from ERP implementations
Think back to the major ERP (Enterprise Resource Planning) programs many organisations undertook in recent years. They absorbed significant investment—both financial and human—and the results were, at best, mixed.
The research into ERP implementations is clear: success was rarely just about getting the technology right. More often, it came down to how effectively organisations managed change. Those who invested in comprehensive change management, addressing not only IT integration but also behavioural and cultural adaptation, fared far better than those who didn’t.
That history offers procurement professionals a valuable lesson as we turn to AI adoption.
Adopting AI in 2025
Recently published research by the MIT NANDA initiative reports a 95% failure rate in recent implementations of AI approaches, linked to flawed enterprise workflows – how we set up to adopt the new technology. Key success factors include setting clear objectives, adapting workflows and processes, providing ongoing change management, and empowering frontline managers to drive adoption.
What this means for AI Adoption
With AI, the same principles apply. To truly maximise its impact, leaders must look beyond the technology and consider:
- Input mechanisms: How will data be captured, structured, and trusted?
- Process design: How can processes be simplified and aligned to enable automation?
- Job roles: How will responsibilities shift, and what new capabilities will be needed?
- Stakeholder engagement: Who will be affected, and how can we bring them on the journey?
- Implementation pathways: How will AI recommendations be translated into practical, accepted action?
We need to recognise that resistance to change is human nature. Simply saying, “AI says we should do this” is not enough to carry people with us.
In fact, we’re already seeing in live AI-driven procurement projects that a lack of holistic planning can undermine results. The promise of speed, insight, and efficiency risks being overshadowed by reluctance or outright pushback from those asked to adopt the outcomes.
What should procurement leaders do?
The answer lies in deliberate, thoughtful leadership. Procurement leaders should:
1
Design a clear change program: Set explicit expectations of outcomes and map out who will be affected.
2
Engage stakeholders early: Don’t wait until AI has generated outputs—bring colleagues into the process so that they feel ownership of the results.
3
Balance speed with adoption: AI accelerates analysis, but stakeholder buy-in determines whether strategies succeed or fail.
We regularly see that strategies developed in isolation—no matter how sophisticated—struggle to gain traction. By contrast, when stakeholders are part of the journey, even bold changes stand a much stronger chance of success.
Engaging with stakeholders
One of the trickier aspects is that AI’s role can often be invisible, even to those using it. This means procurement leaders need to make AI’s contribution more transparent in order to build trust.
Consider ways to:
- Share the inputs and assumptions that AI is working with.
- Apply critical thinking to validate outputs before presenting them.
- Frame recommendations in terms that resonate with real-world challenges and opportunities.
This isn’t about slowing the process down—it’s about ensuring that acceleration leads to real-world delivery, not stalled adoption.
Toward “HumAIne” procurement strategies
We might call this approach humAIne strategy development: combining AI’s analytical power with the human engagement needed to make change happen.
We’re still in the early stages of this evolution, and the “final form” of AI in procurement will take years to emerge. But in the meantime, one principle stands out: success will belong to those who keep people engaged while harnessing AI’s speed and insight.
The future of procurement is undeniably digital—but it will only be successful if it remains, at its core, human.
Further reading
About Mark Hubbard
Director
30+ years experience in procurement and supplier management, in line and consulting roles
Previous employment: Positive Purchasing Ltd, SITA,
QP Group, BMW, SWWS, Rover
Education: BSc in Engineering Metallurgy, MBA University of Plymouth
CIPS: Member
