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Generative AI for procurement moves beyond hype

Gartner says a sharp rise in industry adoption is reachable within two years as use cases develop and capabilities improve.

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The adoption of generative artificial intelligence (GenAI) for sourcing and procurement is gaining steam, and recent research from Gartner shows that its mainstream application may be just two years away.

Generative AI is technology that can generate text, images, videos, or other data in response to user prompts; common examples include the popular ChatGPT.


Gartner said Thursday that GenAI for procurement is at the “peak of inflated expectations” according to the researcher’s “Hype Cycle” for procurement, which offers a snapshot of the maturity and adoption of new technologies and emerging innovations in the field. The data show that use cases are growing and AI capabilities are improving, making GenAI for sourcing and procurement a fast-moving technology within supply chains.

“GenAI can already enhance many different workflows in procurement, and 73% of procurement leaders at the start of the year expected to adopt the technology by the end 2024,” Kaitlynn Sommers, senior director analyst with Gartner’s Supply Chain Practice, said in a statement Thursday. “This level of adoption, along with promising use cases, such as contract management, means GenAI will rapidly move through the Hype Cycle and reach the Plateau of Productivity at a faster rate than is typical for most emerging technologies in procurement.”


Gartner’s Hype Cycle for Procurement and Sourcing Solutions evaluated more than 20 technologies affecting the procurement landscape in 2024. This year, many core procurement technologies continued to mature and increase in adoption across organizations, the researcher said. Additionally, a set of emerging, AI-driven technologies neared the Peak of Inflated Expectations, including GenAI, autonomous sourcing, predictive analytics, and conversational AI.

In the case of GenAI, use cases have expanded greatly as vendors have added capabilities across the sourcing and procurement landscape on a monthly basis, according to Gartner. Examples include applications in contract management, sourcing, and supplier management.

The Hype Cycle for Procurement and Sourcing targets GenAI to be in the mainstream within two to five years, according to the research.

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