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Generative AI in Procurement: How to Create New Value with Smart Solutions

By Oliver Kaivola


Generative AI is transforming procurement by creating new data based on existing information. This includes generating novel designs, drafting contracts, and producing insightful reports, all of which enhance creativity, innovation, and customization. However, adopting generative AI also presents challenges such as data security, ethical concerns, quality assurance, and a skills gap. In this blog post, we'll explore how generative AI can add value to your procurement processes and what to consider before implementation.

Understanding Generative AI

Generative AI is a powerful tool that creates new content from existing data. Unlike traditional AI, which improves processes by analyzing data, generative AI can generate entirely new designs, text, and more. This allows procurement professionals to explore innovative solutions and achieve outcomes beyond what current data offers.

Traditional AI vs. Generative AI

Traditional AI, like machine learning, enhances efficiency by making predictions or classifications based on data. It’s great for tasks like identifying objects in images, recognizing speech, or detecting fraud, and helps improve processes like sourcing, contracting, or invoicing.

Generative AI, on the other hand, is about creativity. It can produce new designs, products, or services, and although it still needs human oversight for final review, it sparks innovation and fresh ideas.

Aligning Generative AI with Business Goals

To get the most out of generative AI, it’s important to have clear and realistic goals. Unlike traditional AI, which automates existing processes, generative AI opens up new possibilities. Understanding this difference helps set the right expectations and maximize the benefits of generative AI.

Change Management and Training

Integrating generative AI into procurement isn’t just about new technology—it’s about changing how we work. Employees should be involved in developing AI applications and receive proper training and support. Clear communication of its benefits and taking employee feedback seriously will help everyone adapt to and embrace these new tools.

Overcoming Resistance to Change

Some employees might be hesitant to use new technologies like generative AI. To overcome this, it’s important to keep the momentum going even after the initial excitement. Providing the right tools, training, and opportunities for learning will help change mindsets and encourage innovation.


Generative AI has great potential to enhance procurement by boosting creativity and innovation. Successful implementation requires clear goals, effective change management, and thorough training. By embracing generative AI, procurement professionals can improve efficiency and productivity, transforming their processes and creating new value.

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