The use of AI in procurement: going from hype to reality

Procurement functions have not had an easy few years, with rising inflation, supply chain disruptions and economic turbulence resulting in pressure to both reduce costs and leaner teams with which to do this.

 

Artificial intelligence (AI) has often been cited as the answer to the dilemma of doing more with fewer resources. After many years when this has been talked of in terms of potential, new technology is starting to have a practical impact on how procurement teams operate. This is leading to genuine efficiencies in financial and time savings, in both the procurement function and the business as a whole.

 

According to the 2025 Deloitte Chief Procurement Officer survey, procurement teams that have embraced digital tools are seeing improvements in areas such as cost savings, cost avoidance, internal stakeholder satisfaction, monitoring supplier performance and enabling innovation. It’s likely to be a similar story in 2026.

 

Making the most of AI doesn’t mean expensive investments in software, either. Many procurement organizations already rely on Amazon Business to buy essential business items, benefiting from access to a wide range of suppliers, the ability to control who in the organization can place orders and greater insight into exactly what is being spent.

 

New tools now make use of AI, helping to drive further efficiencies and insight while also keeping humans firmly in control. “Businesses need AI’s speed, without losing control,” says Doug Gray, VP of Technology at Amazon Business. “We use AI to keep you in the driver’s seat, automating manual processes and making it easier to do your job.”

 

One example of AI that is set to benefit US procurement teams in 2026 is Amazon Business Assistant, which provides desktop users with recommendations for how they can buy more efficiently, based on previous purchase history and their account settings.

 

Amazon Business Assistant will also learn over time what customers like and don’t like, ensuring it offers advice that will be welcome just at the point when it is needed. Once a suggestion is available, users simply click an icon that appears on the desktop.

 

Amazon Business Savings Insights takes this a step further, using AI to make further recommendations for optimizing savings via spend analysis. These recommendations are made based on previous purchasing history, and this is combined with real-time insights to identify opportunities for savings, such as those based on volume buying.

 

Business Prime Enterprise members can also take advantage of Spend Anomaly Monitoring. This tool provides visibility into unusual spending patterns across the business, which could indicate wasted money or even fraudulent purchases. It uses AI to assess purchasing activity and flag any irregularities.

 

These include split purchases, where multiple orders to the same address exceed spend limits in a 48-hour period, as well as abnormal repurchases. In the case of the latter, the technology distinguishes between consumable and non-consumable items, and highlights cases where items are being bought more often than usual. Spend Anomaly Monitoring also flags excessive daily spend by any individual. 

 

Crucially, this tool means procurement teams do not have to engage in time-consuming manual audits, as any issues will automatically be flagged. This will be particularly welcomed by those working for organizations that face strict reporting requirements, such as public sector entities, but is beneficial for all organizations. One business – GAF Roofing – said: “Spend Anomaly is a quick, effective way to identify questionable spending. By focusing on user-level data, we can swiftly investigate potential non-compliance.”

 

These are just some examples of how AI is starting to deliver tangible benefits for procurement teams, which can help improve efficiency and save organizations money. “Powerful technology gives us a new lens on every process,” concludes Gray. “At Amazon, we turn those insights into transformational experiences for our customers.”

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To find out more about how Amazon Business could help your procurement organization embrace smart business buying, visit business.amazon.com