Artificial Intelligence (AI) is increasingly being integrated into procurement software to automate and streamline various processes, such as supplier selection, contract management, and spend analysis. According to a report by MarketsandMarkets, the global AI in procurement market size is expected to grow from USD 1.2 billion in 2020 to USD 4.5 billion by 2025, at a CAGR of 30.1% during the forecast period. This growth is driven by factors such as the increasing adoption of digital technologies in procurement, the growing need for cost optimization, and the rising pressure to comply with regulatory requirements.
One example of a company that has implemented AI in procurement is Unilever. The consumer goods giant has been using AI-powered software from Proactis to automate its procurement process, resulting in significant cost savings and improved supplier relationships. According to Unilever's Chief Procurement Officer, the company has achieved savings of more than $1 billion through the use of AI in procurement.
Another company that has seen success with AI in procurement is GE. The company has implemented an AI-powered platform from Zycus to automate its sourcing process, resulting in a 35% reduction in the time spent on sourcing activities and a 10% reduction in the cost of goods. GE Power has also been able to identify more than $50 million in savings opportunities through the use of AI-powered spend analysis.
IBM also has a procurement software named as IBM Emptoris which uses AI to help companies with their sourcing and procurement activities. IBM Emptoris uses natural language processing and machine learning to automate the sourcing process, including the identification of potential suppliers, the creation of RFQs, and the analysis of bid responses. This has helped IBM's clients to improve their supplier selection process and to achieve cost savings.
AI is also being used to improve contract management in procurement. For example, the software firm DocuSign has developed an AI-powered contract management platform that uses natural language processing and machine learning to automate the contract review and approval process. This has enabled companies to save time and resources on manual contract review, while also reducing the risk of errors and compliance violations.
In conclusion, AI is becoming an increasingly important tool in procurement software, helping companies to automate and streamline various processes, such as supplier selection, contract management, and spend analysis. Companies such as Unilever, GE Power, IBM and DocuSign have all reported significant cost savings and improvements in supplier relationships and contract management through the use of AI in procurement. With the global AI in procurement market size set to reach $4.5 billion by 2025, it is clear that AI will continue to play a major role in the future of procurement.
FactWise leverages Artificial Intelligence, Machine Learning, Natural Language Processing technologies to transform the procurement journey for global product manufacturing companies. The end-to-end source-to-pay solution enables automated RfX creation, auto-negotiations for smooth RfX management, offers a robust supplier recommendation algorithm, automated quadruple validation, and accurate, on-time payments. The procurement software has a minimal, intuitive interface that is easy to adopt, Open APIs to ensure smooth and seamless integrations across systems, and enables a high degree of customizations by end-users without any need to contact Customer Support.
