Unlock the Full Potential of AI in Procurement With A Scalable Platform Architecture

According to Gartner, more than two-thirds of procurement organizations are either exploring AI use cases or already using AI through packaged vendor solutions. However, in many cases, a complex and puzzling AI tool landscape prevents procurement teams from realizing real value.  

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SaaS providers have been quick to add GenAI capabilities to their tools, but most of these enhancements are incremental and narrowly focused on a single process or vertical, rather than improving processes horizontally. Procurement teams require more than disconnected tools to unlock the full potential of AI. They need a unified approach across the end-to-end procurement process. This article examines the current state of procurement-focused AI and explains why platform solutions will be the future of AI in procurement.  

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AI in procurement: Current trends

The procurement technology landscape comprises two main types of software providers: suite providers and specialized point solutions. Suite providers have historically dominated the market, offering comprehensive capabilities across Source-to-Contract and Purchase-to-Pay. These tools prioritize breadth of coverage over deep specialization in any single area.

Over the last five years, we have seen a surge in best-of-breed solutions – specialized tools designed to tackle specific challenges within the procurement process that fill gaps in suite offerings, enhance specialist capabilities, or aim to replace modules entirely. Unlike suites, these solutions usually focus on the depth of their capabilities rather than covering the entire procurement process. With the advancement of AI, these solutions continue down the same path. Many vendors are integrating AI to enhance existing features, improving narrow, task-specific functions.

In late 2024, Microsoft CEO Satya Nadella made headlines by declaring that "SaaS as we know it is dead.” He predicted that AI-driven models, which he referred to as "Agents-as-a-Service" (AaaS), will soon replace conventional SaaS applications by automating business logic and orchestrating workflows through intelligent agents.  

While we don’t believe AI agents will replace SaaS entirely, we do expect them to render specific, narrowly focused tools obsolete. Examples can be found in niche offerings, such as supplier scouting and discovery, or contract authoring. Relying on AI enhancements of point solutions also does not enable procurement teams to scale and leverage AI agents and use cases across the end-to-end process, capitalizing on their unique opportunities. This means they will miss out on AI's true value-add and transformative potential.  

In comparison, AI platforms blend the breadth of scope of suite providers with in-depth capabilities focused on specific procurement processes.  

The future of AI in procurement is built on platforms

What is a platform?  

In software development, a platform is a foundation or framework upon which applications can be built and run. It provides a standardized environment and set of tools that allow developers to create, deploy, and manage applications more efficiently. In the context of AI in procurement, platforms like Procure Ai provide an underlying data structure on which various AI agents and use cases can be built.

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Benefits of using an AI platform

Working with an AI platform offers teams various benefits compared to implementing individual AI solutions focused on specific capabilities. Key benefits include:  

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• Increased speed to market: Platforms often offer multiple out-of-the-box solutions that can be deployed quickly.  

• Scalability: Platform solutions are easily scalable, allowing organizations to add more capabilities as needed. With the data structure being in place, new AI agents and use cases that operate across process silos can be developed easily.

• Flexibility: Platforms are adaptable to changing needs, requirements, and opportunities.  

• Simplified solution landscape: Using a single-platform solution simplifies the onboarding process and engagement. By reducing the need for coordination and alignment across vendors and product roadmaps, the focus shifts to identifying the pain points that AI can solve.

• Lower costs: Partnering with a platform solution reduces the costs of leveraging AI, as multiple use cases can be covered with a single solution, rather than purchasing various point solutions to address the organization’s desired use cases.  

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Unlock the full potential of AI on a single platform

Procure Ai is an AI-powered Procurement Automation Platform that enables procurement departments to connect data and technologies seamlessly. By combining Generative AI, advanced predictive analytics, and autonomous execution, we provide and orchestrate AI agents and use cases along the end-to-end procurement process on a single platform.

Procurement teams are eager to adopt AI to tackle their challenges, but the rapidly expanding array of solutions complicates the process of AI adoption. This prevents teams from achieving end-to-end process improvements. We believe the future will be shaped by strategic platform partners offering a flexible and scalable foundation for AI-driven automation.  

Contact us to find out how we can help you unlock the full potential of AI in Procurement.