AI in Supply Chain

Why Procurement Must Lead Enterprise AI Adoption—Not IT

Written by Trax Technologies | Nov 5, 2025 2:00:03 PM

Artificial intelligence now permeates daily life, from web searches to a constant stream of tools promising business transformation. Yet crossing the chasm from personal use to enterprise deployment remains a huge task—both practically and psychologically. Technology working in production with millions of records, making decisions about multi-million dollar supplier relationships over five years, differs drastically from personal productivity tools.

Recent global research collating views from more than 1,000 C-suite and senior decision-makers responsible for supplier spend in procurement, finance, IT, and operations reveals a striking disconnect: 80% of leaders predict successful AI transformation, yet almost all admit they're only somewhat prepared, or less.

This gap between confidence and readiness creates a critical question: which function should lead enterprise AI adoption? Current practice shows IT departments typically own decisions to invest in AI agents and automation tools. However, procurement's core capabilities position it uniquely to govern AI adoption across the enterprise.

Key Takeaways

  • 80% of business leaders predict successful AI transformation yet almost all admit being only somewhat prepared or less, revealing a critical readiness gap
  • Procurement's core competencies in vendor relationship management, performance measurement, and contract governance position it better than IT to lead enterprise AI adoption
  • AI adoption requires ongoing partnership management and ROI tracking that aligns with procurement's traditional supplier scorecard and value realization frameworks
  • Fragmented IT-led AI adoption without centralized procurement oversight creates vendor proliferation, duplicated capabilities, and inconsistent governance
  • Organizations positioning procurement to lead AI evaluation and scaling gain centralized oversight, stronger vendor accountability, and better demonstration of business value

Procurement as the Gate Opener

Procurement functions serve as gate openers to the external world. The discipline centers on discovering available innovation, services, and supplies, then using supply markets to shape business futures. Given AI's transformative potential, few markets matter more to organizational futures than the AI vendor ecosystem.

Procurement professionals have spent careers evaluating complex technology purchases, managing vendor relationships, and measuring supplier performance against contractual commitments. These skills transfer directly to AI adoption challenges that IT departments often lack experience addressing.

Four Core Procurement Competencies for AI Governance

Building vendor relationships: AI adoption isn't a one-time purchase but an ongoing partnership requiring relationship management, escalation protocols, and strategic alignment. Procurement teams excel at establishing governance frameworks that extend beyond initial contracts.

Measuring and tracking results: AI investments demand rigorous ROI measurement and performance tracking against baseline metrics. Procurement's experience with supplier scorecards and value realization frameworks translates directly to AI performance management.

Monitoring contract performance: AI vendors make ambitious claims about capability, accuracy, and business impact. Procurement's expertise in holding suppliers accountable to contractual commitments becomes critical when AI systems underperform or require renegotiation.

Assessing value and comparing options: The AI vendor landscape evolves rapidly, with new capabilities and pricing models emerging constantly. Procurement's competitive evaluation skills—understanding total cost of ownership, comparing alternatives, and identifying hidden costs—prove essential for navigating complex AI purchasing decisions.

The Strategic Importance Shift

Business leaders increasingly view procurement as strategically important precisely because AI adoption raises questions about risk management, ROI measurement, supplier performance, governance, and regulatory compliance. These sit squarely within procurement's traditional competencies.

If any function will build the bridge to AI-enabled futures, procurement departments should govern the process of adding, evaluating, and scaling AI across businesses. The alternative—fragmented IT-led adoption without centralized oversight—creates vendor proliferation, duplicated capabilities, inconsistent governance, and missed opportunities for enterprise-wide standardization.

The Driver's Seat Question

The future arrives whether organizations understand it or not. The critical question isn't whether AI transforms operations but who occupies the driver's seat during transformation. IT departments bring technical expertise, but procurement brings vendor management discipline, contract governance, performance accountability, and cross-functional coordination.

Organizations positioning procurement to lead AI adoption gain centralized oversight, consistent evaluation frameworks, stronger vendor relationships, and better ROI measurement. Those leaving AI governance to IT risk fragmented implementations, weak vendor accountability, and difficulty demonstrating value.

The gate opener function must extend to the most important supply market shaping business futures: artificial intelligence itself.

Ready to position your procurement function at the center of AI transformation? Discover how Trax's AI-powered freight audit solutions—including AI Extractor and Audit Optimizer—demonstrate procurement-led AI adoption in action. Connect with our team to learn how normalized supply chain intelligence creates the visibility foundation for strategic AI governance across your enterprise.