Question 1

What are the real benefits of generative AI in procurement for mid-sized businesses?

Accepted Answer

For mid-sized companies, generative AI in procurement offers fast, visible wins: fewer manual errors, better insight into supplier performance, and faster access to spend data. It can surface risks, automate reporting, and reduce reliance on scattered spreadsheets. The biggest shift? Teams start spending more time on strategy and less time correcting or chasing down information. That balance often leads to smarter, quicker decisions.

Question 2

Is generative AI secure enough for sensitive procurement data?

Accepted Answer

Security depends on how and where you deploy it. Most enterprise-grade generative intelligent procurement software follows strict data governance rules, supports encryption, and limits access to sensitive inputs. That said, it’s essential to evaluate vendor policies and work with your internal IT and compliance teams. Done right, GenAI can be both powerful and secure, especially if you train it using your own, vetted data sources.

Question 3

What is GenAI and how is it different from traditional procurement automation?

Accepted Answer

If you’re wondering what is GenAI, think of it as a tool that can generate ideas, documents, or insights, not just process data. Traditional automation handles rules-based tasks. Generative AI goes further, drafting contracts, suggesting sourcing strategies, or summarizing vendor risk reports. It’s like having a sharp assistant who reads everything and offers well-informed suggestions. That’s what sets GenAI apart in procurement - context, not just calculation.

Question 4

Can generative AI help with sustainability and ESG goals in procurement?

Accepted Answer

Yes! and it’s one of the most promising use cases. With the right prompts, generative AI tools can scan supplier disclosures, track emissions data, and flag potential risks in sourcing practices. Some teams use it to monitor diversity spend or check ethical sourcing compliance. While human oversight is still key, GenAI provides faster visibility and better reporting, making sustainability less of a reporting headache and more of a day-to-day habit.

Question 5

How can companies avoid common pitfalls when adopting AI in procurement?

Accepted Answer

Many teams rush to adopt artificial intelligence in procurement without addressing data quality, user readiness, or governance. Success often depends on having a roadmap and a partner who understands both procurement and applied AI. Digicode helps clients avoid these traps by focusing on practical implementation - from data preparation to prompt engineering, so you get results that are actually sustainable.

CEO Europe

Alex Karichensky

Transforming Procurement: How Generative AI is Revolutionizing Mid-to-Large Business Operations