AI Adoption in Procurement Grows, but Most Firms Lag

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Achilles, a global supply chain risk and performance management company, has reported growing use of artificial intelligence (AI) in procurement, supplier risk and sustainability management. However, the latest survey shows that most organisations are still at the early stages of adoption.

The survey collected responses from 2,805 organisations across Australia, Brazil, France, Germany, Italy, the Middle East, Norway, Spain, Sweden and the UK. Among respondents who provided information on AI adoption, 37% said they are piloting, using or widely deploying AI in procurement, supplier risk or sustainability activities. Only 2% said AI is fully integrated across their organisations.

The findings indicate that businesses are moving beyond discussions about AI and beginning to apply the technology to practical procurement activities. Process automation, virtual assistants, chatbots, supplier management and risk mitigation are among the leading applications.

Organisations also reported benefits including improved process efficiency, reduced repetitive work and better use of data for decision-making. Sentiment towards AI remains positive. About 45% of respondents have a favourable view of AI in procurement, compared with 7% who hold a negative view. However, adoption varies significantly between sectors.

Information Technology recorded the highest adoption rate among sectors with at least 25 respondents, at 62%. Marine Transport followed at 56%. Ground Transport recorded the lowest adoption rate among the larger sectors at 26%. The survey also highlights several challenges preventing wider deployment. These include limited internal skills and data science expertise, difficulties integrating AI with legacy systems and ERP platforms, poor-quality or incomplete data, and a lack of strategic focus on AI.

Adam Whitfield, Head of Global Compliance and ESG at Achilles, said organisations are increasingly putting AI into practical use, but successful implementation depends on strong foundations. He said AI can help companies identify risks faster, reduce manual work and improve visibility across complex supply chains. However, technology cannot compensate for inaccurate supplier information or replace human judgement and established due diligence processes.

Supplier data quality is therefore expected to play an important role as organisations expand their use of AI. Reliable information allows AI systems to identify patterns, highlight potential problems and support better risk assessments. Incomplete or inconsistent information can instead reinforce existing blind spots.

Achilles’ wider research shows that only 6% of organisations have complete visibility beyond their Tier 1 suppliers. This underlines the continuing challenge of understanding risks deeper within global supply networks. As companies face greater pressure to improve supply chain resilience, sustainability performance and reporting, AI is expected to become an increasingly important tool. The survey suggests that organisations that combine AI with validated supplier data, effective governance, continuous monitoring and human expertise will be better positioned to gain practical value from the technology.

Achilles is a global supply chain risk and performance management company connecting suppliers and buyers across industries. Operating in more than 140 countries, the company supports organisations in reducing supply chain risk, improving sustainability, strengthening compliance and increasing operational efficiency.