Procurement in the age of AI

To meet these rising expectations, many procurement teams are turning to advanced analytics, AI, and machine learning (ML) to transform the way they make smart business buying decisions and create value for the organization. AI and ML tools have long helped procurement teams automate mundane and manual procurement processes, allowing them to focus on more strategic initiatives. But recent advances in natural language processing (NLP), pattern recognition, cognitive analytics, and large language models (LLMs) are "opening up opportunities to make procurement more efficient and effective," says Julie Scully, director of software development at Amazon Business. The good news is procurement teams are already well-positioned to capitalize on these technological advances. Their access to rich data sources, ranging from contracts to invoices, enables AI/ML solutions that can illuminate the insights contained within this data.