AI and Automation: Transforming Procurement and P2P

AI is everywhere—making headlines, transforming industries, and reshaping the way we work. And procurement is no exception. The latest research confirms that AI and automation are the top trends shaping purchase-to-pay (P2P) processes over the next five years. With increasing workloads and fewer resources, procurement and finance leaders can’t afford to ignore the shift.

The reality is clear: manual processes are no longer sustainable. Organizations that embrace AI-driven automation will unlock real-time data visibility, reduce inefficiencies, and drive smarter decision-making. In this blog, we explore why digitalization is the logical first step, how AI is closing operational gaps, and what procurement teams must do to stay ahead.

Why Procurement AI Is More Than Just a Buzzword

The mention of artificial intelligence (AI) is starting to feel like a broken record. It seems like there’s another headline every day about AI, Chatbots, or a new billion-dollar investment in some . Some of us may be tempted to tune it out—but a savvy procurement or finance professional knows that AI isn’t just background noise.

The most recent Hackett Group survey found that are the #1 trends set to shape the purchase-to-pay (P2P) landscape over the next five years. As with any transformative technology, this presents both opportunities and challenges. AI will drive new business models while also reshaping existing procurement operations. And when examined with the #2 and #3 trends: Digitalization of P2P Processes and Real-Time Data Visibility, it becomes clear that automation and simplification are necessary.

The Workforce Challenge in P2P

This same Hackett study highlights a concerning shift in procurement workforce dynamics. Compared to 2024, P2P managers and leaders can expect higher workloads but fewer resources. This is a daunting forecast. Total workload volume is expected to rise by 3.5% in 2025, while full-time P2P staff is projected to decrease by nearly 4%. Fewer hands managing more spend creates an operational efficiency gap that must be addressed.

So where should organizations start? With workforce reductions looming and technology rapidly evolving, businesses must assess the landscape holistically and execute strategic priorities. These priorities will vary for each P2P organization, but in a world of large language models (LLMs) and quantum computing, there’s no justifiable reason to process invoices manually.

The First Step: Digitalization and Automation

For most organizations, digitalizing P2P processes is the logical first step. Managing purchase orders and invoices manually is time-consuming and introduces human error into a system that demands efficiency. Coupled with a shrinking workforce, continuing with outdated, labor-intensive processes simply won’t be sustainable.

That’s why Hackett experts have identified Generative AI and Intelligent Automation as the #1 improvement initiative for 2025. Automating P2P operations, especially now that AI-driven systems have significantly reduced error rates, is one of the safest bets for procurement leaders looking to increase efficiency and reduce costs.

Data: The Key to Unlocking Real-Time Insights

Hand-in-hand with AI and digitalization is data. One of the biggest challenges organizations of all sizes face is accessing and analyzing data effectively. Even best-in-class companies typically assess spend data quarterly at most and, even then, a portion of that data is already outdated or subject to change.

AI-driven digital systems mean real-time access is becoming the norm. Imagine an invoice being digitally processed, instantly integrated into the system, and analyzed for insights all in real time. This level of visibility allows organizations to make faster, data-driven decisions, optimize cash flow, and enhance supplier relationships.

Real-time access goes beyond simple visibility by unlocking opportunities that were previously considered too complex or too low value to address. Take tail spend management, for example. Once seen as too fragmented or insignificant to optimize, such transactions can now be automated and strategically managed. In some cases, organizations can capture real, hard-dollar savings through advanced spend analytics and supplier consolidation. Having a continuously updated picture of procurement activity enables leaders to make proactive, rather than reactive, strategic decisions.

The Future of P2P: Adapt or Fall Behind

The message from Hackett’s research is clear: Procurement and Finance leaders must embrace AI or risk falling behind. While change can be daunting, those who adopt AI will streamline operations, close productivity gaps, and drive greater strategic value.

The P2P landscape is evolving. The question isn’t whether AI will play a role, but how quickly your organization will realize it and adapt. Will you lead the charge, or will you struggle to keep up?

With all these technological advancements and workforce shifts, organizations face a fundamental decision: invest in new technology or fill the gaps with outsourced labor. Corcentric is uniquely positioned to offer a hybrid approach—one that combines cutting-edge technology, operational support, and strategic advisory services into a single, integrated solution.

Unlike most providers that offer either software or consulting, Corcentric is the only end-to-end P2P partner that can:

• Digitize and automate P2P processes with best-in-class software solutions
• Provide a dedicated customer success team to manage day-to-day P2P operations
• Offer expert Advisory Services to guide strategy, adoption, and long-term optimization

Most companies that invest in procurement technology end up hiring separate consultants to ensure proper implementation and adoption—resulting in multiple contracts, disconnected workflows, and added complexity. Corcentric eliminates this friction by offering a fully integrated approach.

With decades of experience in strategic sourcing, process engineering, and change management, Corcentric’s advisory team ensures that the right strategies aren’t just implemented—they’re adopted and sustained for long-term success. Whether your goal is automation, spend optimization, or workforce augmentation, Corcentric provides the technology and expertise to future-proof your P2P operations.

If your organization is looking to close efficiency gaps, increase automation, and drive measurable cost savings, Corcentric isn’t just a vendor—it’s a true strategic partner in procurement transformation. Contact us today to see how we can help streamline your P2P operations—and don’t forget to check out the full infographic for a deeper dive into the impact of AI and automation on procurement.