Agentic & Generative AI: The Next Revolution in Procurement

Executive Summary

With global supply chain disruptions, increased cost pressures, and rising sustainability demands, organisations are turning to artificial intelligence (AI) to drive smarter, faster, and more strategic decisions. The latest frontier is Agentic and Generative AI – intelligent systems that not only analyse data but also act, negotiate, and learn autonomously. Agentic AI refers to autonomous AI “agents” capable of making decisions, executing tasks, and interacting with other systems to achieve specific outcomes. In procurement, this means moving from traditional, rule-based automation to self-driving procurement functions that can negotiate contracts, manage supplier communications, and optimise sourcing strategies. Generative AI focuses on creation, using large language models to help procurement teams draft contracts, generate insights, and automate data processes. Nearly half of organisations now use embedded GenAI tools within procurement platforms, while another 30% are experimenting with custom implementations. Leading enterprises are implementing AI in their procurement workflows, enabling AI agents to negotiate directly with suppliers' AI systems, adjusting terms and prices based on real-time conditions.