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April 7, 2025

Bridging the Talent Gap in Procurement Through Automation and AI

Procurement stands at a crossroads of transformation in today’s business world. Integration of Artificial Intelligence (AI) and Automation is no longer a luxury or future concept—it is a strategic requirement. These technologies are actively addressing the talent difference in procurement and redefining how procurement operations are managed, scaled, and adapted.

In this blog, we will explore how AI and automation in procurement are helping leaders navigate the lack of talent by unlocking operational excellence. Supported by statistics, research, and best practices of the global market, this transformation empowers procurement teams to work smarter, faster, and more strategically—not replace them.

Understanding the Talent Gap in Procurement

The procurement sector is undergoing a major shift due to the integration of advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML). This shift has led to increasing demand for professionals with digital competencies. However, there is a significant disconnect between the existing skills of procurement professionals and the evolving needs of the industry.

A Deloitte report highlights that 92% of CPOs are planning to adopt Generative AI capabilities in 2024, indicating a shift toward leveraging technology to overcome talent shortages and enhance procurement functions.

The Role of AI and Automation in Procurement

AI and automation are transforming procurement by automating routine functions, enhancing decision-making, and enabling strategic initiatives. These technologies reduce the talent gap by allowing professionals to focus on higher-value activities.

Key Benefits of AI and Automation in Procurement

• Smooth Procurement Processes: Automating repetitive tasks like data entry and invoice handling reduces errors and accelerates operations.
• Smarter Decision-Making: AI analyzes large data sets to reveal patterns in supplier performance, market trends, and risks, helping teams make confident decisions.
• Maximize Savings: Predictive analytics identify areas to cut costs and optimize procurement strategies.
• Better Risk Control: AI-powered tools monitor supplier risks continuously, ensuring compliance and avoiding disruptions.

An Airbase study shows that 96% of procurement leaders are using AI in their processes—from market intelligence to predictive analytics—for smarter outcomes.

Addressing the Skills Gap Through Advanced Technology

While AI and automation address talent shortages, they also create a need for new skills. Roles are shifting from routine tasks to data analysis, tech interaction, and strategic decision-making.

Smart Ways to Bridge the Skills Gap in Procurement

• Upskilling and Reskilling Your Team: Training teams to work with AI and automation is essential. Teams equipped with these skills drive efficiency and smarter decision-making.
• Learning Together Across Teams: Collaboration with IT, finance, and data teams encourages shared learning and smoother adoption of new tools.
• Hiring People with Tech Skills: Bringing in talent with experience in data science, analytics, and digital tools complements existing procurement expertise.

Conclusion

Bridging the talent gap in procurement isn’t just about adopting technology—it’s about combining smart tools with continuous learning, strategic hiring, and process evolution. These combined efforts boost efficiency, spark innovation, and maintain global competitiveness.

As procurement evolves, staying updated with technology and investing in people is vital. Balancing human expertise with intelligent systems is key to overcoming today’s challenges and embracing future opportunities.

We offer an advanced AI-powered eProcurement management software designed to streamline and optimize your entire purchasing process. From smart sourcing to enhanced supplier collaboration and visibility, our solution empowers organizations to operate efficiently, reduce risks, and make data-driven decisions in a complex procurement environment.

Frequently Asked Questions

How is procurement technology helping address the talent gap?

AI and automation reduce the workload on procurement professionals by automating routine tasks like vendor selection, invoice processing, and compliance checks. This allows leaders to focus on strategy—even with limited staff.

Can small and mid-sized enterprises benefit from procurement automation too?

Yes. Scalable procurement solutions now make it possible for SMEs to implement robust strategies, manage suppliers effectively, and adapt to market changes—without requiring a large team.