Generative AI (GenAI) for procurement has reached the “Peak of Inflated Expectations,” according to Gartner’s 2024 Hype Cycle for Procurement and Sourcing Solutions. This milestone marks a turning point, with some companies already experiencing success and others struggling to keep up.
Gartner predicts that GenAI will rapidly progress to the “Plateau of Productivity” within two years, where mainstream adoption will begin. With 73% of procurement leaders expecting to adopt GenAI by the end of 2024, this technology is poised to transform procurement workflows.
GenAI is already enhancing various procurement processes, including contract management, sourcing, and supplier management. Future applications are expected in supplier performance management and analytics.
While challenges remain, particularly regarding data quality and integration, procurement technology vendors are leveraging third-party large language models to provide affordable GenAI capabilities.
By launching targeted use-case pilots and monitoring vendor developments, companies can harness the power of GenAI without building proprietary infrastructure from scratch.
Source: SupplyChain24/7
