Intelligent purchasing: How artificial intelligence can redefine the purchasing function

Abstract

Abstract Artificial intelligence (AI) can affect all of a company’s functions, not least the purchasing department. In addition to automating and optimizing existing processes, AI opens up new opportunities for purchasers to undertake new, strategic, collaborative, enduring missions. AI enables complex, strategic decision-making in an unpredictable, hostile environment. This article analyzes to what extent AI can improve the performance of the purchasing department. First, a review is undertaken of how AI is used in purchasing. Thereafter, the research follows an exploratory, inductive, and qualitative approach based on a multiple case study of the following technologies: (1) the Synertrade automated international purchasing system; (2) the Silex matching system; (3) SAP Ariba decision support; (4) Jaggaer supplier relations management; and (5) the Ideapoke collaborative ideation and innovative project management platform. The present study’s contributions lie in its redefinition of the purchasing function, of the purchaser’s role, of supplier relationship management policy, and of interdepartmental collaboration, involving, for example, Marketing and R&D.