GenAI in Procurement: from Buzz to Bottom-Line Cost Reductions
Companies have made huge investments in AI, including generative AI (GenAI),and they’re seeing sizable gains in productivity and efficiency. Yet many organizations struggle to translate those improvements into concrete financial savings. Procurement is one area where AI can swiftly reduce costs. Some procurement processes are repeated over time and quantifiable, generating a volume of data that AI can sift through to rapidly improve performance and lower costs. In Boston Consulting Group (BCG), work with companies, procurement functions that use AI can reduce overall costs by roughly 15% to 45% (depending on the category) and eliminate up to 30% of the work for employees and teams. Those gains enable companies to reallocate procurement team capacity to more strategic, value-added tasks. From Buzz to Bottom Line – Cost Savings Using GenAI | BCG