What Is The Overview Of The Global Generative AI In Procurement Market?
Generative artificial intelligence (AI) in procurement refers to the application of AI algorithms and technologies to streamline and optimize various aspects of the procurement process within businesses and organizations. It is utilized to automate document generation, forecast demand, evaluate suppliers, and optimize prices, enhancing efficiency and decision-making throughout procurement.
Generative AI In Procurement Global Market Report 2024 provides data on the global generative ai in procurement market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The Generative AI In Procurement market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Generative AI In Procurement Market Expected To Grow In Size And Annual Rates?
The generative artificial intelligence (AI) in procurement market has seen exponential growth, increasing from $0.12 billion in 2023 to $0.16 billion in 2024, with a compound annual growth rate (CAGR) of 28.7%. This growth in the historic period is driven by the availability of vast amounts of data, the increasing complexity of global supply chains requiring sophisticated procurement solutions, strategic vendor relationship management, and the integration of big data analytics enhancing decision-making processes in procurement. Looking ahead, the market is projected to grow to $0.43 billion by 2028, maintaining a CAGR of 29.0%. Future growth drivers include the widespread adoption of cloud computing platforms facilitating scalable AI implementations, integration of AI with Internet of Things (IoT) devices and big data analytics for real-time insights, development of industry-specific AI solutions tailored to procurement challenges, heightened emphasis on sustainability in procurement practices, and the evolution towards autonomous procurement systems leveraging AI-driven automation. Major trends expected in the forecast period include AI-powered predictive analytics enabling proactive procurement strategies, the adoption of conversational AI interfaces for seamless interaction with procurement systems, optimization of pricing strategies through dynamic pricing algorithms, multi-modal data fusion techniques enhancing data accuracy, and the integration of AI-driven insights into strategic procurement decisions.
What Main Forces Are Fueling Expansion In The Generative AI In Procurement Market?
The generative artificial intelligence (AI) in the procurement market is expected to grow driven by the rising demand for cloud services. Cloud services, including storage and software accessible via the internet, enable flexibility and innovation in procurement processes. Eurostat reported a 59% adoption rate of cloud computing services among medium-sized enterprises in 2022, up from 53% in 2021. This adoption facilitates the scalability and computational power needed for generative AI applications in procurement, supporting efficient and cost-effective operations. The increasing reliance on cloud services propels the generative AI in procurement market through 2023, 2024, and 2028, reflecting ongoing digital transformation in procurement practices.
Get Your Free Sample of the Global Generative AI In Procurement Market Report
What Are The Primary Segments In The Global Generative AI In Procurement Market?
The generative ai in procurement market covered in this report is segmented –
1) By Type: Direct Procurement, Indirect Procurement, Goods Procurement, Services Procurement
2) By Organization Size: Large Enterprise, Small And Medium Enterprises
3) By Application: Supplier Identification, Product Or Service Recommendation, Negotiation Support, Risk Assessment, Contract Analysis, Fraud Detection, Predictive Modeling, Other Applications
Which Key Trends Are Driving Changes In The Generative AI In Procurement Market?
Companies are innovating with products like the generative AI Suite to boost the efficiency of finance and procurement teams. This suite includes a range of AI-powered tools designed to streamline and optimize procurement processes. For instance, in October 2023, ZIP, a US-based software solutions provider, launched its generative AI suite, which includes predictive analytics, automated insights, supplier relationship management, and contract management tools. This suite integrates AI into workflows such as request intake, approval, and contract renewal, saving thousands of hours spent on vendor contract reviews and error-prone data entry.
What Is The Leading Region In The Generative AI In Procurement Market?
North America was the largest region in the generative AI in procurement market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI in procurement market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
