Generative AI (GenAI) is capturing attention across industries and procurement is no exception. During this recent EBG | Webinar, experts from Accenture and Ivalua shared their experiences and insights on how procurement teams can explore and leverage GenAI to enhance operations and strategies. Hosted by Anna Bjärkerud, the session combined practical demonstrations, real-time polling and actionable takeaways to help organizations understand what’s possible and how to move forward effectively.
The presenters – Antal Kamps and Yuriy Danylchenko from Accenture and Erik Korpås from Ivalua -emphasized that while the potential of GenAI is immense, realizing its benefits requires thoughtful integration, strong data foundations and a readiness to experiment and learn.
Poll 1: Where Are Organizations in Their GenAI Journey?
During the webinar, participants were asked how far along their organizations are in leveraging GenAI for procurement operations. The results painted a picture of the current state of adoption (in mainly the Nordics):
- 17% haven’t started yet: These organizations are at the beginning of their journey, either unsure of how to approach GenAI or lacking the resources to begin.
- 46% are exploring possibilities but no concrete steps taken: Almost half of the respondents are in the discovery phase, interested in GenAI’s potential but hesitant to commit to specific initiatives. (This figure aligns closely with Accenture’s observation that 44% of procurement leaders are piloting or starting GenAI use cases.)
- 24% are running pilots or proof-of-concepts: Some organizations are testing GenAI through focused experiments to evaluate its impact.
- 13% are using AI in specific procurement areas: A smaller group has moved beyond pilots and is implementing AI tools for specific use cases like spend analysis or contract management.
- 0% have fully integrated GenAI into procurement processes: No participants reported enterprise-wide adoption, reflecting the challenges of scaling and integration.
Presenter Reflections
The speakers noted that these results aligned with their experience working with clients. Many organizations are intrigued by GenAI but struggle to move beyond pilots. As Antal Kamps remarked, “It’s fun to experiment, but the real value comes when you integrate GenAI into a holistic operating model.” Without a clear plan to scale and align efforts with business goals, organizations risk losing momentum or becoming fatigued with repeated pilots.
Yuriy Danylchenko highlighted a key challenge:
“Often, organizations treat GenAI as just another new technology, but the reality is that it requires a transformation of your operating model, processes and data structures to unlock its full potential.”
Yuriy Danylchenko
Watch the On Demand session
Click the image to re-watch the recorded session!
Poll 2: What Are the Most Critical Factors for GenAI Adoption?
A second poll asked participants to identify the most critical factors for successfully adopting GenAI in procurement. The results highlighted clear priorities:
- 67%: Access to high-quality, structured data.
- 37%: A culture that embraces innovation and change.
- 35%: Investing in internal knowledge and expertise.
- 33%: Adequate budget and resources for implementation.
- 29%: Clear alignment with business objectives and ROI.
Presenter Reflections
The focus on data quality was unsurprising to the panel. As Yuriy Danylchenko explained, “Data is everything. Without connected, structured and reliable data, it’s impossible to realize the benefits of GenAI.” However, the panel also emphasized that organizations shouldn’t wait for perfect data. Instead, they should begin with areas where data quality is sufficient and improve incrementally.
On the importance of culture and innovation, Antal Kamps remarked, “Daring to take the next step, even if the path isn’t fully clear, is what distinguishes successful adopters.” He also stressed the importance of supporting employees through training and change management, ensuring they feel confident and capable of working with GenAI tools.
Accenture’s Insights: Rethinking Operating Models and Data Importance
Accenture emphasized the need for a holistic view when integrating GenAI into procurement. According to Antal Kamps, “There’s a risk because money is being spent, maybe you won’t get further funding, the organization gets tired of doing more and more POCs without really getting the benefits out of it.” He stressed that GenAI should not be seen as just another technology but as a catalyst for rethinking procurement’s operating model.
Yuriy Danylchenko highlighted the importance of data quality and connectivity: “If we fix an issue of the data quality and connectivity, then the ability to quickly assess the impact of a supply chain disruption is becoming relatively easy.”
He also emphasized that the procurement operating model is due for an upgrade, stating, “Current operating model in procurement is more than 20 years old.”
Strategic Prioritization in Use Cases
Kamps emphasized prioritizing GenAI capabilities that align with business goals to ensure funding and stakeholder support. “CFOs won’t give endless funding,” he noted, stressing the need to focus on high-impact use cases like autonomous sourcing or category strategy development.
Accenture presented a crawl, walk, run approach to GenAI adoption:
- Crawl: Start with areas where data is relatively good, such as spend intelligence.
- Walk: Explore how to use GenAI for tasks like RFX template creation and supplier discovery.
- Run: Move towards autonomous sourcing and intelligent negotiations.
Live Demonstrations: Practical Applications of GenAI
Accenture: Real-Time Risk Mitigation and Decision-Making
Yuriy presented a live demo illustrating how GenAI can address disruptions in the supply chain with speed and precision. The example involved a hypothetical tsunami in Indonesia affecting a supplier. GenAI was used to assess the impact on the organization and suggest mitigation strategies in real time.
- Key Capabilities Demonstrated:
- Risk Identification: GenAI identified the affected supplier and shipment value, marking it as a critical risk.
- Impact Analysis: The system calculated the disruption’s potential revenue impact by connecting spend data, inventory levels, bills of materials and sales data. What previously took weeks or months to analyze was reduced to minutes.
- Mitigation Options: The system provided actionable options, such as:
- Inventory Redistribution: Displaying stock levels across factories and consumption rates to facilitate internal redistribution.
- Alternative Suppliers: Highlighting suppliers with existing contracts or similar capabilities, along with metrics such as delivery times and risk scores.
This demo underscored the importance of data quality and connectivity, as Yuriy remarked, “Even if the answer looks simple, it relies on harmonized master data and proper connectivity across the supply chain.” He emphasized that while this level of integration is complex, many organizations can start small and gradually build these capabilities.
Ivalua: Practical Applications with IVA
Erik demonstrated Ivalua’s “IVA” a virtual assistant embedded within the source-to-pay process. IVA’s capabilities spanned the entire procurement cycle, offering significant time savings and actionable insights.
- Category Intelligence: IVA aggregated real-time data to provide category managers with insights on price trends, compliance challenges, and supply risks. For example, it could summarize five forces analysis for a category, complete with key dates and recommended actions.
- Guided Supplier Discovery: IVA used enterprise and web data to recommend suppliers, helping sourcing managers find options beyond their usual vendors. This feature allowed for supplier onboarding directly within the sourcing event.
- Contract Analysis: IVA summarized contracts and answered specific questions, such as identifying indemnification clauses and their associated terms. This capability reduced time spent on manual contract reviews, enabling teams to focus on strategy.
Together, these demos highlighted how GenAI transforms procurement by reducing administrative burdens, enabling better risk management and enhancing decision-making.
Lessons Learned and Actionable Takeaways for Procurement Professionals
The presenters shared valuable insights and practical steps for organizations looking to explore and scale GenAI:
- Start small and scale thoughtfully: Begin with manageable use cases, such as spend analysis or supplier discovery and use these successes to build momentum. “The journey starts small, but it must be strategic,” noted Erik Korpås.
- Focus on integration: Avoid treating GenAI as a standalone tool. Embed it into your existing operating model, aligning it with processes, technology and data to maximize its impact.
- Align efforts with business goals: Ensure GenAI initiatives support broader organizational priorities and deliver measurable ROI. As Antal Kamps highlighted, “CFOs won’t give endless funding – you need to prioritize high-impact use cases.”
- Invest in people: GenAI tools are only as effective as the people using them. Provide training and foster a culture of innovation to help teams feel confident and capable of leveraging these tools.
- Focus on data readiness: Prioritize improving data quality and connectivity as a foundation for scaling GenAI initiatives. As Yuriy Danylchenko explained, “Data is everything – without it, you can’t realize the potential of GenAI.”
- Use the right tools: Solutions like Ivalua’s IVA demonstrate how GenAI can simplify procurement tasks, from guided supplier discovery to contract summarization.
- Iterate and learn: Be prepared to pivot from use cases that don’t deliver value and refine those that do. “It’s okay to reject use cases that don’t work for you and focus on what does,” advised Erik Korpås.
Final Reflections
The webinar emphasized that while GenAI is still in its early stages within procurement, its potential is clear. The key to success lies in taking small, thoughtful steps, focusing on data and people and aligning efforts with long-term goals. As the presenters noted, “The journey starts with curiosity but ends with transformation.”
As Anna Bjärkerud concluded: “The future is bright for procurement. More and more, you’ll be (hopefully) able to do what you’re best at – collaborate, innovate and bring value to the business and customers.”
About Ivalua
Ivalua is a leading provider of cloud-based Spend Management software. Our complete, unified platform empowers businesses to effectively manage all categories of spend and all suppliers, increasing profitability, improving ESG performance, lowering risk and improving employee productivity. We are trusted by hundreds of the world’s most admired brands and recognized as a leader by Gartner and other analysts. Learn more at ivalua.com. Follow us at @Ivalua.
About Accenture
Accenture is a leading global professional services company that helps the world’s leading organizations build their digital core, optimize their operations, accelerate revenue growth and enhance services—creating tangible value at speed and scale. They are a talent- and innovation-led company with approximately 774,000 people serving clients in more than 120 countries. Technology is at the core of change today, and Accenture is one of the world’s leaders in helping drive that change, with strong ecosystem relationships.
They combine their strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability. Their broad range of services, solutions and assets across Strategy & Consulting, Technology, Operations, Industry X and Song, together with their culture of shared success and commitment to creating 360° value, enable them to help their clients reinvent and build trusted, lasting relationships. Accenture measure their success by the 360° value they create for their clients, each other, their shareholders, partners and communities. Visit us them at accenture.com