The rise of intelligent procurement: Embracing AI and data analytics for crossfunctional synergy

Abstract

This paper delves into the transformative role of procurement in modern corporate structures, especially in North American businesses, highlighting its evolution from a transactional function to a strategic asset within organisations. The core aim is to explore how technological advancements, particularly in data analytics and cognitive artificial intelligence (AI), are redefining procurement’s role, facilitating cross-functional collaboration and driving innovative practices. The scope of this paper encompasses the historical perspective of procurement’s underestimated strategic potential, its current integration into various organisational facets and the profound impact of AI and data analytics in enhancing procurement’s efficacy and strategic value. Readers can expect to gain a comprehensive understanding of the strategic transformation of procurement, particularly how it has moved beyond traditional cost management to become a central player in innovation, risk management and sustainability efforts. The paper provides insights into the practical applications of data analytics and AI in procurement, showcasing how these technologies enable predictive decision making, enhance supplier relationship management and contribute to effective risk assessments and budget forecasting. The paper also underscores procurement’s growing influence in strategic decision making and its critical role in fostering cross-functional partnerships. Readers will also learn about the increasing importance of trust and ethical practices in procurement, reinforcing their position as a vital component of organisational success. Ultimately, the reader will be equipped with the essential knowledge to understand the evolving landscape of procurement, its strategic implications and the potential of AI and data analytics in shaping future procurement practices.