AI in procurement: turning data into decisions with Ivalua and GEP

Procurement has always been about making the right choices: the right supplier, the right timing, the right price. What’s changing is how those decisions are made. With artificial intelligence (AI) moving from industry buzzword to daily reality, procurement leaders now have a powerful new ally in the fight for efficiency and value creation.

Yet, adoption still lags. Only 32% of organizations have deployed AI in procurement, while 55% already feel at a competitive disadvantage from slow adoption (Ivalua, 2025). The message is clear, waiting too long means falling behind.

But the real challenge is not just adopting AI quickly, but making sure it is implemented with strategy, supported by clean data, clear processes and teams ready to act on insights.

Beyond automation: AI as a decision partner

Digital procurement platforms like Ivalua and GEP have long been known for streamlining sourcing, contract management, and supplier collaboration. With AI embedded into their capabilities, they’re evolving from process engines into decision-support systems.

Think recommendations for which suppliers to invite to sourcing projects. Real-time supplier risk alerts based on global news feeds. Automated highlighting of risks hidden in contracts. This isn’t simply digitising procurement, it’s making procurement more intelligent, proactive, and aligned with business goals.

But here’s where many organisations stumble: installing AI-enabled tools without aligning them to their own processes, culture, and category strategies. Without that fit, the technology can end up being just another underused feature in a shiny interface.

The strategic layer AI needs to succeed

An AI-powered procurement platform is only as good as the data it ingests and the people who use it. Success comes from balancing three pillars:

• Process design
  Define how AI insights integrate into sourcing and supplier management workflows.
  
• Data quality
  Ensure clean, structured, and complete datasets to feed accurate recommendations.
  
• Adoption
  Train teams not just to operate the platform, but to trust and act on AI-driven insights.

When these elements align, Ivalua and GEP can deliver far more than automation. They transform procurement into a strategic driver of resilience, cost optimisation, and sustainability. In fact, companies leveraging best-in-class Source-to-Pay solutions report 57% efficiency gains and 49% higher productivity (Ardent Partners, 2025) on-focused organisations, tail spend slows you down.

Why partner expertise matters

AI in procurement isn’t a plug-and-play solution. It’s a transformation journey that benefits from a partner who understands both the technology and the business context.

At Kronos Group, we are already helping clients take this step by implementing AI-enabled features. These deployments are supporting procurement teams in integrating AI insights into category strategies, sourcing decisions and contract negotiation.

Our experts work hand in hand with procurement teams to:

• Configure Ivalua or GEP to match your organisational requirements
• Integrate AI outputs into day-to-day decision-making
• Build internal confidence through tailored training and change management
• Continuously refine AI models as business needs evolve

Because AI isn’t static: the market changes, supplier landscapes shift, and algorithms improve. The goal isn’t just to implement AI, but to keep it delivering strategic value over time.

The future is intelligent procurement

From supplier risk prediction to contract compliance monitoring, AI is shaping the next era of procurement. In the right hands, platforms like Ivalua and GEP don’t just process transactions, they enable smarter, more strategic decisions.

If your organisation is ready to move from digital procurement to intelligent procurement, now is the time to start. With the right expertise, AI can move from concept to competitive advantage.

Let’s talk about how AI can transform your procurement function and how to get it right from day one. Get in touch with Kronos Group experts today.