SAP Taulia: Procurement Faces Global AI Investment Deficit

Procurement functions across global enterprises are facing a substantial investment gap in AI, even as demands on these teams continue to intensify.

According to SAP Taulia's AI in Procurement Report, procurement and supply chain operations are receiving lower prioritisation for AI investment compared to other business functions, with just 35% of business leaders worldwide making these areas a priority. This figure trails behind finance at 43%, data analytics at 39% and cybersecurity at 38%.

The disparity between demands and investment has become more pronounced.

According to the report, 72% of procurement professionals say expectations on their function increased over the past year, with 44% believing AI can play a substantial role in addressing these challenges.

Danielle Weinblatt, Chief Product Officer at SAP Taulia, says: "Procurement sits at the heart of business resilience and supply chain security.

"AI presents a considerable opportunity to elevate procurement's strategic impact – transforming how organisations manage risk, relationships and working capital. The key is investing with both immediacy and long-term vision."

Procurement experts have identified clear areas where AI could deliver value.

Risk detection and mitigation tops the list at 28%, followed by data-led strategic decision-making at 26% and spend analysis and reporting at 25%. Additional processes identified include sourcing and tendering, and automating invoice and payment procedures, each at 23%.

Geographic variations in priorities

Regional differences reveal a fragmented global approach to AI investment in procurement. In the UK, only 20% of leadership teams identify procurement as a priority for AI investment, contrasting sharply with Australia at 44%, Singapore at 41% and the US at 37%.

Despite constrained budgets, procurement professionals are already utilising AI tools. More than half (55%) say they use platforms like SAP Joule, Ivalua or JAGGAER, while almost two-thirds (63%) use generative AI tools such as ChatGPT, Gemini or Microsoft Copilot.

Among those using AI platforms, the benefits are becoming evident. The vast majority (90%) of procurement leaders report that automation enables them to shift their focus towards more valuable responsibilities.

Furthermore, 88% say AI allows more time for strategic work, while 87% believe data-driven insights gained through AI are enhancing procurement's influence in broader business decisions.

Strategic value versus perception

John Roberts, Senior Director of North America Procurement at NTT DATA, adds: "The findings in this report validate what we see every day: AI is a valuable tool and we're using it to elevate procurement from a back-office function to a strategic partner to the business.

"As we automate tasks such as invoice processing and spend analysis, it's not just about cutting costs; it's about unlocking our team's capacity to build resilient supply chains and use data for true risk detection."

The report outlines several barriers limiting AI adoption in procurement. Data security and compliance risks are cited by 36% of procurement professionals as a top concern, while a lack of senior leadership awareness or understanding of AI's benefits is mentioned by 35%. Other concerns include limited AI expertise, weak alignment with wider digital strategies and insufficient training (all 33%).

Operational challenges also present obstacles. Integration difficulties across workflows are mentioned by 31% of respondents, while 30% say poor data quality obstructs AI effectiveness. Perhaps most telling, a full 30% of professionals say procurement is still not viewed as strategic enough to justify AI investment.

Ashifa Jumani, Director of Procurement at TELUS, comments: "It's a clear paradox – procurement leaders understand AI's potential for strategic decision-making and higher-value work, but many functions are still overlooked in the wider investment strategy.

"To get past this, we need leadership to champion the 'why' behind AI, treating it as an augmentation tool that empowers our people, not as a threat."

Danielle adds: "This research marks an important opportunity. With low awareness cited among senior leadership, procurement can step up as a strategic partner and educator.

"This marks an opportunity to proactively showcase the specific, high-ROI benefits of AI for procurement, whether it's managing geopolitical risk or identifying hidden spend, to overturn the outdated view that the function is purely transactional."