AI can transform the supply chain but adoption is slow

A new survey of 300 supply chain and procurement decision-makers in the UK reveals that while 36 percent are in the process of implementing AI, almost a third (32 percent) are either just considering adoption or have no plans to adopt AI at all.

The study from Ivalua indicates a growing divide between businesses moving ahead with AI and those lagging behind, with those that have deployed AI already reaping the benefits, including improved data analysis for decision-making (85 percent), task automation (83 percent), and demand forecasting (79 percent).

"With rising costs, ongoing volatility in trade policies, and constant pressure to do more with less, slow adoption of AI isn't just a missed opportunity, it's becoming a strategic risk," says Alex Saric, smart procurement expert at Ivalua. "While early adopters use agentic AI to streamline sourcing, automate supplier management, and unlock real-time insights, slower-moving businesses are grappling with outdated processes, limited visibility, and mounting inefficiencies. The message is clear: the longer organizations wait, the wider the AI gap becomes. As market leaders use AI to cut costs, negotiate smarter, and build resilience, those standing still risk being left behind for good."

On a positive note, 74 percent of organizations plan to increase their budget for AI-powered procurement and supplier management tools over the next 12 months. However, with the rise of agentic AI, which 73 percent believe will transform procurement and supply chains, the gap between early adopters and the rest risks widening even further. Trust has also become a central issue, as more than half (52 percent) of respondents say they wouldn’t trust agentic AI to make critical decisions during a supply chain crisis.

"To get the most out of agentic AI, procurement leaders must first lay a strong digital foundation – with consistent data, clear visibility across functions, and centralized policy enforcement," adds Saric. "This foundation enables organizations to build better auditability and accountability into every stage of the Source-to-Pay process. The next step is driving adoption, optimizing output quality, saying agile, and proactively managing compliance and security risks. With the right approach, procurement can go beyond automation -- using agentic AI to uncover deeper insights, react faster to risk, and deliver real strategic value."

You can get the full report from the Ivalua site.

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