AI-powered procurement: Unlocking the potential of the Middle East

Words by Andrew Eugene O'Reilly and Geoffrey Boutin

Over the past decade, procurement has evolved from a back-office order taker into a strategic contributor. With organizations in the Middle East facing supply chain disruptions and regulatory changes, it’s now time to look towards the next step for Procurement: becoming a leader of enterprise-wide transformation and resilience. Artificial Intelligence (AI) is emerging as a powerful enabler to this evolution.

Compared to previous procurement technology shifts – such as the introduction of e-procurement, cloud-based solutions, and recent innovations like blockchain and digital twins – AI stands out for its lower barriers to entry and strong compatibility with legacy IT systems. This makes AI one of the most accessible and impactful tools for procurement transformation today. This article explores how AI can empower Procurement to position itself as a proactive, data-driven leader – and provides guidance for teams looking to get started. 

AI in procurement: The impact

Artificial Intelligence (AI) refers to software capable of performing tasks typically requiring human intelligence, such as analyzing spend data or recommending optimal purchases. How it is applied in procurement varies widely:

• Personal enhancement: AI tools can help individuals draft reports, summarize contracts, or interpret regulations faster.
• Workflow automation: AI can identify patterns to speed up approval cycles, streamline supplier onboarding, or assist with compliance monitoring.
• Workflow replacement: At the most advanced level, AI takes over entire functions, such as autonomous negotiations, dynamic pricing, or real-time contract risk flagging.

Many AI-powered solutions center around a Large Language Model (LLM), which interprets complex text data – such as contracts, policies, and specifications – and acts like a lightning-fast assistant. The impact is fourfold: