Every day, procurement teams make high-stakes decisions with imperfect information, which is the procurement blind spot. Drowning in supplier contracts, compliance requirements, and endless negotiations, consequently losing cost-saving opportunities, hidden risks, and wasting hours on manual processes.
Gen AI and Agentic AI are quickly transforming the procurement activity lifecycle, enabling increased efficiencies in completing routine human tasks. While Gen AI focuses on automating routine tasks, Agentic AI, with its ability to understand and execute complex tasks, is revolutionizing strategic decision-making in procurement.
AI liberates practitioners from spending time on mundane tasks, allowing them to focus on making decisions that leverage their expertise, judgment, and inference. Several use cases abound in procurement, including strategic category management, optimizing supplier relationships, and executing improved negotiations.
Evalueserve is actively transforming its procurement solutions through the strategic integration of artificial intelligence. At the heart of this evolution is Insightsfirst, the company’s proprietary platform, which now supports over 25,000 client practitioners in executing various stages of their procurement workflows.
Clients consistently report that Insightsfirst enhances their ability to analyze both internal and external data sources, uncovering insights that would otherwise remain hidden. By integrating and synthesizing data from diverse systems, the platform serves as a comprehensive procurement control tower.
The increasing infusion of advanced AI capabilities within the platform is delivering unprecedented gains in accuracy and operational efficiency for clients.
This AI-driven evolution is not just about automation—it’s about empowering procurement teams with data-backed foresight and agility, instilling confidence in their decision-making.
AI-Driven Supplier Contract & Risk Review: A Case Study
A Fortune 500 home appliance manufacturer partnered with Evalueserve to enhance procurement efficiency through Gen AI. The company manages over 100,000 active supplier contracts in the US, manufactures products in more than 10 countries, and markets its appliances in almost every country. Despite deploying advanced AI and analytics capabilities, contract management remained a resource-intensive activity, requiring significant practitioner involvement. Ensuring the right contract terms were agreed upon was not just a matter of improving value for internal stakeholders but was also critical for the company’s risk management and compliance adherence.
Evalueserve piloted Gen AI in contract lifecycle management for the client’s direct procurement operations in the US. The initiative focused on two primary use cases
- Knowledge Management for improved contract creation,
- Document analysis for enhanced contract review
By analyzing vast datasets of existing agreements, GenAI generated summary views of contract histories, enabling procurement professionals to familiarize themselves with contract lifecycles quickly. The AI-driven solution also assisted in developing legally compliant and customized contract drafts, significantly reducing errors and ensuring regulatory compliance. The solution streamlined contract creation, automated contract reviews, and enhanced accuracy in contracting activities.
Through GenAI-powered analysis, the solution identified non-compliant clauses, suggested alternatives, and provided valuable insights based on historical agreements. While the application did not eliminate the need for expert decision-making, it significantly simplified the reviewers’ lives. Through its ability to ingest a variety of prevalent document types, the solution directly helped Procurement buyers gain efficiency in their contract life cycle processes. The solution swiftly scanned agreements to flag hidden risks found in ambiguous non-compliant clauses, allowing the client to address such risks proactively and protecting the organization from potential legal and business risk exposure.
Evalueserve’s AI-driven tool facilitated seamless contract review by integrating AI with the client’s Contract Lifecycle Management System. Users can now red-line documents as part of their existing workflow, eliminating the need to switch platforms. By unlocking hidden trends and patterns through the analysis of vast contract data, GenAI provided invaluable insights that enable informed decision-making and optimized agreements. As a result, the efficiency gains from AI-driven contract management yielded over 40% in manhours savings for one region’s direct procurement.
Scaling AI Adoption for Enterprise-wide Impact
The immediate and measurable Return On Investment -encouraged the client to scale the solution to its entire global enterprise- and to adopt Gen AI in other areas outside of procurement. Different business units, including warranty determination, appliance repair and inbound call centre management, have initiated AI pilot programs, with several projects earmarked for enterprise-level deployment.
Beyond cost savings and efficiency improvements, this initiative has laid the foundation for exploring Agentic AI in more complex workflows. The company has established a Gen AI Centre of Excellence, where new use cases are being evaluated, prioritized, and implemented. This strategic adoption of AI underscores a broader shift towards intelligent automation in procurement and supply chain management, marking an exciting journey of transformation.
Conclusion
Evalueserve’s AI-powered procurement solutions are transforming the industry by streamlining contract lifecycle management, mitigating risks, and enhancing operational efficiency. The success of this initiative, which has led to significant cost savings, improved compliance, and strategic decision-making, underscores the transformative potential of AI in procurement. As AI technology continues to evolve, organizations that embrace its capabilities will gain a competitive edge.
