Current and Future Trends in Strategic Procurement with Generative AI

Abstract

It is difficult to predict with certainty how the outlook for strategic procurement will be in the next decade, but the current trends of Generative AI have already had a significant impact. This study aims to analyse the recent research focused on Generative AI strategic procurement and global supply chains with structured pros and cons of the way they could impact the strategies. For this purpose, a literature review based on 19 research articles and studies was performed to identify the areas of strategic procurement where the Generative AI could effectively perform specific tasks and to formulate shared perspectives for greater impacts. As with any new technology, the use of Generative AI is not without effort and setbacks. There are several outstanding topics, and it is important to consider the highlights and the lowlights when integrating Generative AI into strategic procurement processes. Based on this analysis, the following areas of the strategic procurement activities, with most of the value added by the implementation of the new AI technologies, were identified, in this priority order: 1. Ethical considerations, 2. Market intelligence, 3. Risk management, 4. Supplier management, 5. Contract management. The results of this research may be of interest to category procurement professionals. Further research is needed to investigate cost-effective methods for further development of the Generative AI digital transformation.

Keywords

• ai technologies
• category procurement
• generative ai
• global supply chain
• strategic procurement