Top 10 AI Tools to Streamline Procurement Processes in 2025

Procurement is the process of searching, acquiring, and managing materials, goods, or services from external vendors. This involves many tasks, like evaluating potential suppliers, managing spending across departments, sending RFQ (Requests for Quotation), or managing supplier risks. Errors in procurement can lead to delays, financial losses, and legal risks. So, AI is integrated into procurement processes to reduce these challenges, improve sourcing efficiency, as well as ensure compliance with your internal policies and external regulations. 

What are AI tools for procurement, exactly? How can they help your business improve operational efficiency and save money? What are the best tools to consider in 2025? Let’s find them out with us in today’s article!

AI tools for procurement are smart software powered by different core AI/GenAI technologies to automate and streamline different procurement stages. 

In particular, these tools use machine learning (ML) and natural language processing (NLP) to continuously collect and analyze procurement data – albeit structured or unstructured – from various sources, like emails or supplier documents. This helps them spot patterns, anticipate future needs, and manage supplier risks, hence suggesting proper actions and enhancing your procurement team’s decisions. 

So, what can AI tools do for your procurement team? According to the 2025 Deloitte Global CPO Survey, AI is mostly adopted in the top 10 cases as follows:

1. Spend analysis (53.44%)

AI can analyze spending data across your entire company to identify unauthorized spend or overspending cases. For example, if an employee tries to make a purchase above his/her approved budget, AI will block it or send it for higher-level approval. This manages purchases, uncovers cost-saving opportunities, and improves supplier negotiations.

2. RFx Creation (42.33%)

Drafting formal procurement documents like RFIs (Requests for Information), RFPs (Requests for Proposal), and RFQs (Requests for Quotation) often costs much time. Using templates or context from past projects, AI tools help create these quickly while ensuring consistency across documents and compliance with your company’s guidelines. This enables more strategic sourcing and faster supplier outreach.

Smart tools use NLP to scan long contracts and retrieve important terms/clauses about pricing, delivery timelines, renewal dates, etc. They can even summarize the contracts within seconds. These help your procurement team understand obligations better and compare various contracts at once while staying compliant with internal policies and industry standards. 

4. Contract drafting (31.75%)

AI helps draft contracts for specific goods and services by using pre-built templates, adopting legal language, and complying with your company’s policies. With AI, your team can reduce time for manual writing, contract revisions, and legal reviews. 

5. Sourcing optimization (27.51%)

AI tools can analyze vast amounts of supplier data, past performance, and market shifts to recommend higher-performing suppliers or better sourcing strategies. Particularly, AI insights can suggest the most trusted vendors to cooperate with in the long term instead of spreading purchases across many suppliers. This accordingly leads to volume discounts and lowers management costs. Further, AI helps you renegotiate better pricing and more favorable terms on existing contracts based on supplier performance and market trends. 

7. Category strategy development (21.69%)

AI analyzes data and groups related goods or services into different categories based on their spend volume, vendors, etc. This helps your team identify category trends and develop optimal bundling/unbundling strategies to acquire the best deals.

8. Automated invoice verifications & approvals (19.58%)

AI tools can compare invoices with purchase orders and receipts (three-way matching) to identify duplicate or incorrect invoices. Then they will flag these discrepancies for review or auto-approve low-risk invoices to reduce fraud risks and payment delays.

9. Supplier negotiation strategy/scenario modeling (17.99%)

Before negotiations, AI tools can simulate different scenarios, like switching vendors or negotiating bulk discounts. Scenario modeling helps your procurement team devise more effective negotiation strategies backed by data. 

10. Intake management/guided buying (17.46%)

Serving as virtual assistants, AI tools guide your team members seamlessly through the procurement process. Suppose your team plans to buy a new desktop computer. AI-powered procurement tools will recommend approved models, suppliers, and spending limits. This accelerates procurement workflows, keeps tasks on schedule, and ensures policy compliance.

In recent years, AI has become one of the most essential technologies for various business workflows, including procurement. According to the 2025 Annual ProcureCon CPO report by GEP, adopting AI and machine learning is considered one of the top priorities and initiatives (33%). This trend mirrors the growing recognition of AI’s potential in revolutionizing procurement processes, from automating routine tasks to offering predictive insights for strategic sourcing. With AI tools, organizations expect to: 

• Improve analytics and decision making
• Boost employee productivity
• Manage spend better and optimize admin costs
• Enhance process consistency
• Improve risk, compliance, and knowledge management
• Increase outcome quality

And many more!

This year, with the emergence of agentic AI, most procurement departments (90%) are proactively finding ways to integrate this advanced technology in the next 6 or 12 months. Accordingly, they’re expecting to automate more complex tasks and decision-making processes with minimal human supervision. This leads to significant cost savings and efficiency gains. 

However, not too many procurement teams feel confident about effectively using AI for procurement automation. They admit that they still lack the essential skills and resources (50%) to adopt AI solutions, let alone several existing barriers like integration issues (88%), data quality issues (75%), lack of leadership support (63%) for AI initiatives. These findings emphasize the significance of resolving technical and organizational challenges to AI usage in procurement.

Anyway, the outlook for AI adoption in procurement is still positive and promising. Along with that is the introduction of various successful AI tools in streamlining and automating procurement functions. Below are the top software solutions integrating AI capabilities you should watch in 2025: 

1. JAGGAER

JAGGAER is an intelligent source-to-pay and supplier collaboration platform. It integrates JAI, an agentic AI partner that automates workflows, offers proactive recommendations, and supports faster decision-making. In the future, JAI is expected to provide real-time guidance across sourcing and perform complex procurement workflows with minimal human intervention. But its current capabilities mostly revolve around answering questions, guiding navigation, and processing tasks as follows: 

• Spend Management: Derives in-depth spend insights to forecast budget more accurately and control costs across categories more intelligently. 

• Category Management: Conducts intelligent analysis of market data, supplier performance, and internal spend trends. This helps your procurement team create, track, and improve your digital procurement category strategies. 

• Strategic Sourcing: Automatically generates RFx, analyzes bids, selects the lowest prices, and more.

• Supplier Intelligence: Automatically discovers and onboards the best suppliers, as well as proactively identifies and reduces supplier risks by analyzing their performance indicators. Also, collects ESG data across the Source-to-Pay process to help you comply with changing regulations and reduce risks.   

• Contracts: Speeds up contract lifecycle management by automatically creating contracts, supporting negotiations, tracking compliance, and flagging risks. 

• eProcument: Suggests preferred items, guides purchases, and automates approval flows. This helps mitigate maverick spend, shorten requisition cycles, and improve procurement efficiency. 

• Invoicing & Payments: Boosts invoice accuracy and management by automatically detecting fraud, checking compliance, and routing approvals. Further, AI ensures secure and compliant payments by verifying payment data, flagging abnormal signs, and prioritizing high-risk transactions. 

2. GEP SMART

GEP SMART^TM is an AI-powered procurement tool that unifies and streamlines every stage of the source-to-pay process. It’s highly evaluated as an intuitive, easy-to-use platform with the following key functions:

• Spend Analysis: Provides detailed insights into goods and materials across your company to unlock savings opportunities. Besides, your team can set spending thresholds and receive alerts when the spending reaches the established conditions. 

• Savings Tracking: Cross-checks your cost-savings efforts against historical data and predefined savings benchmarks. Also, the platform automatically records purchase and invoice activities to track performance based on your company’s KPIs and help the finance department verify cost savings seamlessly. 

• Sourcing: Discovers, evaluates, and qualifies new vendors with AI. Additionally, the tool allows your team to create sourcing events quickly based on best-practice templates to launch new RFx or e-auctions, getting a comprehensive view of all these activities to evaluate performance. 

• Contract Management: Drafts and manages contracts collaboratively. Besides, GEP SMART offers intuitive dashboards and integrated reports to track contract execution and compliance effectively. 

• Supplier Management: Manages vendors and their performance with scorecards, status & summary reports, and more. 

• Procure-to-Pay: Provides the advanced intake management functionality to guide users through the entire procurement process, from inventory management and fraud detection to payment management and invoice automation. 

3. SAP Ariba

SAP Ariba is one of the world’s leading spend management software solutions. It connects millions of buyers and suppliers globally for effective procurement workflows. SAP Ariba offers a wide range of solutions to improve operational efficiency and boost workforce productivity while lowering supplier risks, financial disruptions, and market uncertainty. Deeply integrated with advanced analytics, automation, and AI capabilities, SAP Ariba solutions include:

• Procure-to-Pay: Enables spend control and compliance with guided purchasing, catalogue management, company-wide contract orchestration, bundle requisitions, invoice processing, etc.

• Source-to-Contract: Streamlines sourcing processes across your company, like RFx creation, savings tracking, or direct materials sourcing. Further, SAP Ariba makes negotiations more effective to speed up contract cycles and reduce revenue loss. It also simplifies contract processing workflows and aligns contract performance with your business goals.

• Procurement Strategy: Analyzes spend data across categories by AI-driven dashboards and large language models. Besides, SAP Ariba transforms category management with consistent category frameworks, automated strategy generation, and other tools. 

• Supplier Management: Manages the supplier lifecycle, from onboarding and qualification to segmentation and performance tracking. Also, SAP Ariba proactively evaluates and monitors risks related to targeted vendors in your supply base.

4. Zycus

Zycus is a globally recognized source-to-pay (S2C) platform that leverages generative and agentic AI capabilities to automate and streamline various procurement workflows. 

One of its notable AI functionalities is Merlin Intake. This built-in feature handles front-end procurement operations, from request generation and approvals to sourcing and compliance. It accordingly enables you to send requests via a conversational interface. Merlin Intake also intelligently asks follow-up questions to gather necessary details for approvals and automatically routes requests to approved suppliers based on internal policies. 

Further, Zycus integrates the Merlin AI Agentic Platform, which orchestrates smart AI agents to deliver compliant and effective processes. They accordingly can:

• Autonomously handle all negotiations for better and faster deals while ensuring the best terms and compliance.
• Intelligently evaluate bids to make supplier selection easier and more effective. 
• Suggest suppliers based on your needs, analyze their potential risks, and automate sourcing events.
• Offer real-time pricing insights, as well as automate the discovery of cost-saving opportunities and accounts payable. 

Zycus also provides a wide range of GenAI-powered apps for different procurement workflows. From sourcing & supplier management and invoicing to contract and risk management, these apps can handle them all to accelerate processes, improve decision-making, and optimize costs. 

5. LevaData

LevaData is an intelligent software solution for direct material sourcing and supply chain analytics. It integrates generative and agentic AI capabilities to derive deep data insights, streamline procurement processes, and optimize spend. In particular, the platform can deliver:

• Spend Intelligence: Tracks, analyzes, and compares the cost of each direct material part/component against industry benchmarks or market averages. This unlocks cost-saving opportunities and optimizes spend management. Further, it enables a successful product launch by offering an intelligent analysis of your New Product Introduction (NPI) Bill of Materials (BOM) process. 

• Lead Time Visibility: Tracks and analyzes lead times (the time it takes for a material to be delivered after being ordered) and supplier data to evaluate supplier performance. The insights also help you choose high-performing suppliers and avoid potential risks in supply chains. 

• Location Insights: Proactively monitors location-related challenges, like natural disasters, sudden tariff changes, or political turmoil. This helps pinpoint suppliers at risk and dynamically discover alternative sourcing locations to ensure supplier continuity. 

• Component Risk Management: Helps your team forecast component risks (e.g., delayed deliveries or unstable vendors) to keep your supply chain smooth. Also, LevaData gives you actionable insights to source alternative components and materials with reduced costs and lower risks.   

• Supplier Management: Evaluates supplier health by using the AI-powered supplier scorecard. Also, LevaData offers supplier collaboration tools for effective communication, RFx creation, and more. 

6. Fairmarkit

Fairmarkit is one of the world’s leading autonomous sourcing platforms. It allows your business to purchase goods and services more effectively with automation, AI capabilities, and deep data insights. The platform integrates smoothly with your P2P and ERP systems like SAP ECC or Coupa, so you can start sourcing autonomously without disrupting existing procurement workflows. 

Accordingly, Fairmarkit can:

• Automate sourcing – from converting requisitions into RFQs and grouping similar RFQs to finding the best-fit suppliers and finalizing purchase orders (POs) based on your criteria.
• Intelligently suggest suppliers through advanced analytics of data (e.g., RFx details or vendor info).
• Automate the supplier contracting process – from term optimization and multi-stakeholder bidding to cross-functional collaboration.
• Create statements of work (SOWs) and RFx automatically by using KIT (Fairmarkit’s self-serve GenAI solution).
• Onboard and connect your existing vendors into groups to simplify quote reviews, bid awarding, approvals, etc. 

7. Procurify

As an intelligent platform, Procurify automates and simplifies your procure-to-pay process. It offers powerful tools and AI capabilities to give you full management over spend, aiding in making responsible spend decisions. Particularly, these tools facilitate:

• Purchasing: Tracks and manages every purchase of your company to ensure more effective and compliant procurement. Accordingly, Procurify helps create purchase requests, track contracts and current spend, shorten approval time, manage suppliers, and more.

• Accounts Payable (AP): Enables AI-driven invoice processing to increase data accuracy and save time. Also, the platform accelerates the process of checking and validating bills by using automated three-way matching, as well as syncing the bills from Procurify to your company’s ERP or accounting software. Besides, you can manage and speed up the payment process in one platform, from approving and scheduling to processing your vendor payments.

8. Coupa

Coupa is the world’s leading AI native total spend management platform, recognized by Gartner. With Coupa Navi™ AI agents, the tool simplifies supply chain decision-making, anticipates and mitigates potential risks, and optimizes your operations and margins. These agentic AI capabilities streamline:

• Supply Chain Design & Planning: Helps your company optimize supply chain networks by using digital twins and constraint-based optimization to test different strategies and scenarios. Further, Coupa automatically suggests the best transportation modes and equipment, calculates the right inventory levels, forecasts demands, and evaluates tariff impacts. It also offers the App Studio to create business apps that resolve specific supply chain challenges. 

• Supply Chain Collaboration: Manages all communications with your suppliers in one place and gives you a real-time view of purchase orders. Further, Coupa helps your team track and respond immediately to disruptions for materials. 

• Source-to-Contract: Allow smarter sourcing by unlocking savings opportunities, requesting bids, evaluating stakeholders’ responses, drafting contracts, and onboarding vendors.

• Procure-to-Pay: Provides complete spend analyses, performs AP automation processes, and uses ESG data across your business to make strategic decisions. Moreover, Coupa offers tools to identify risky spend and potential fraud early, automating compliance across tax and industry regulations. 

9. Ivalua

Ivalua is a comprehensive AI software tool for procurement and spend & supplier management. Its Intelligent Virtual Assistant (IVA), powered by GenAI, helps your team address procurement challenges, including:

• Supplier Research: Finds and collects information on existing or new vendors and their offerings.
• Contract Summary & Drafting: Summarizes contracts instantly or creates clauses to ensure specific elements are covered.
• Category & Market Insights: Conducts market research and summarizes key trends in your categories. 
• Supplier Communication: Writes or edits professional messages to suppliers (e.g., emails for follow-ups or invitations) based on your instructions.
• Improvement Planning: Reviews information and recommends appropriate actions to build a foundational structure for an improvement plan.
• Chat with Your Documents: Pulls relevant data, information, and insights from lengthy documents in seconds (e.g., supplier ESG reports or contracts).

Besides, Ivalua offers no-code tools and frameworks to help you build your own procurement use cases. Whether it’s about intake management, eProcurement, or supplier risk & performance, Ivalua has the right capabilities to automate away manual work, reduce procurement risks, and control your spend comprehensively. 

10. Sirion

Sirion is an industry-leading AI tool in contract lifecycle management across sectors. As for procurement, it offers you full visibility into all supplier contract terms across your business to negotiate better deals and enforce them. Its AI capabilities can:

• Interpret unfamiliar contract templates and provide real-time data insights to guide you through the negotiation process.
• Automatically monitor obligations to track supplier performance and ensure you get exactly what you paid for.
• Offer an instant overview of core data across your entire procurement contract portfolio through dashboards.
• Send timely alerts to prioritize and prepare for deadlines in advance.

Furthermore, Sirion integrated specialized AI agents to address specific challenges. For example, AskSirion can summarize contracts, explain legal jargon, and answer questions about any contract in your entire repository. Meanwhile, the IssueDetection Agent can spot risky clauses, discover contextual deviations from your playbook, and clarify the overall risk composition across the full document. 

This article has given you complete visibility into the most common use cases, benefits, as well as challenges of AI procurement tools in today’s era. Also, we offer a curated list of the best software solutions using AI to automate and accelerate procurement workflows. 

Before exploring these tools, take a closer look at your current procurement challenges and goals, then prioritize tools that can address your most urgent pain points first. You also need to evaluate how the tools integrate with your existing systems, like ERP or accounting software, and then assess vendor support, data security, and scalability. Don’t forget to run demos and involve stakeholders to compare vendors side by side during your trial phase. 

However, do you have very unique and complex procurement processes that off-the-shelf tools hardly support, and you also want full control over features and data flows? Building your own AI procurement tool is a better option, and Designveloper is here to help you realize this idea. 

With our deep technical expertise and years of hands-on experience in software development across industries, we are very confident in building tailored, scalable, and high-quality solutions to address your existing procurement challenges. We also have a diverse portfolio of successful AI-powered solutions that integrate seamlessly with core business systems and bring the best outcomes. Contact us to turn your idea into a working solution!