The challenges of modern procurement look different than they once did. The collective pressures of economic instability, rising costs and shrinking resources are enough to elicit an immediate change. Factor in high workloads, complex sourcing, compliance nuances and an onslaught of AI capabilities, and the noise cannot be ignored, even by the most experienced procurement teams. Fortunately, AI can serve as the intelligent foundation that empowers procurement professionals to tackle these ever growing challenges head-on.
While procurement teams struggle to keep up with demands, AI-native procurement platforms have the potential to automate tasks using intelligent workflows, removing much of the mundane work from procurement professionals and allowing them to focus more on important strategy.
Understanding modern procurement challenges
Procurement teams are stretched thin as high workloads are met with flat or reduced budgets and rising supplier costs. More than 50% of procurement teams cite inflation as their biggest restraint, which reduces purchasing power and dominoes into the overall effectiveness of procurement operations.
Many departments operate with a skeleton crew and are responsible for full-scale procurement processes across multiple departments. Working with outdated systems and manual workflows slows down these processes, limiting opportunities to focus on high-yield efforts like supplier strategy and risk management.
Over time, the outdatedness of traditional procurement processes and platforms becomes a bigger challenge. When combined with the growing complexity of the global supply chain, limited visibility, poor integration, and heightened vulnerability to disruptions put overall performance and resilience at risk.
To overcome these barriers, teams need to modernise their tools and rethink how procurement roles are structured.
Defining AI-native procurement
When assessing AI solutions, it is important to remember that not all AI technology is created equal. AI approaches typically fall into two categories: architected with AI from the beginning and AI retrofitted onto existing systems. AI-native platforms are engineered around AI capabilities from the ground up. Unlike retrofitted AI, which often requires complex integration to force-fit AI capabilities onto legacy architectures, AI-native platforms make intelligence a seamless part of every workflow.
AI-native systems advance workflows more reliably because they solve a fundamental data challenge: AI requires unified, contextual data rather than fragmented information across multiple systems. When procurement data lives in disparate applications, AI must synthesise information across integration points, reducing accuracy and creating the potential for failure. AI-native architecture means every component was designed with intelligent automation in mind. Think unified data models, workflow engines built for machine learning, and interfaces designed for AI-assisted decisions.
From a productivity standpoint, AI-native platforms are designed to be operational from the very start, helping teams see value faster and improve efficiency almost immediately. Outputs that previously took hours, like detailed contract summaries or project memos, can now be generated in seconds, dramatically improving productivity.
Just as critical, AI-native platforms ensure consistency, accuracy and compliance across the organisation. Due to the complex configurations of retrofitted technology, outcomes are much less predictable and unreliable in comparison.
Enhancing procurement roles
AI is already transforming the way procurement teams work. Tasks that used to take up numerous hours, like processing invoices, tracking contracts, bid reviews, and maintaining compliance, can now be done in minutes with AI automation.
This elevates procurement from transactional execution to strategic influence. AI advancements are creating opportunities for new skillsets and opening up new categories of procurement professionals. Some organisations are establishing “procurement engineering” roles, or specialists who configure AI-driven workflows while maintaining human oversight at critical decision points.
The shift toward AI-enabled procurement is gaining momentum. The National Association of State Procurement Officials (NASPO) recently surveyed all 54 of its primary members (US chief procurement officers representing all 50 states, DC, and US territories), and AI was cited as a top priority for the current fiscal year. Early adoption is happening, and what comes next is broader, more intentional use of AI across procurement.
Enabling procurement strategy
Within the next year, 70% of procurement agencies plan to adopt contract lifecycle management software. These agencies are also prioritising investments in supplier performance tracking and invoice automation.
Modernising procurement enhances operational performance. AI-native platforms move procurement out of pilot purgatory and into lasting transformation, giving teams real ROI while empowering them to focus on strategy instead of firefighting.
As procurement professionals gain capacity for more strategic responsibilities, they can focus on activities that directly impact business outcomes: supplier relationship management, cost optimisation, risk mitigation, and data-driven decision-making. These activities can have reverberating effects that can also influence organisational growth and uncover new value opportunities.
Effective AI implementation requires navigating challenges like legacy system integration and data quality issues. However, when properly implemented, intelligent procurement platforms eliminate friction from routine tasks while maintaining accuracy and compliance. This creates capacity for strategic work that transforms procurement from a transactional function into a delight.
Stan Garber, Co-Founder and President of Levelpath
