ChatGPT & AI in
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Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

ChatGPT Decision-Making — 7 Procurement Decisions Tips

Key take-aways

  • Data-driven decisions assisted by ChatGPT can help organizations reduce costs, manage risks, and work more efficiently.
  • ChatGPT can help reduce manual errors and lessen the amount of time it takes to complete procurement tasks, including purchase order routing and supplier evaluations.
  • Human expertise remains indispensable in procurement decision-making, with ChatGPT as a tool for assisting processes.

ChatGPT decision-making in procurement is about to become a go-to in helping sourcing, negotiation, contract management, and others. ChatGPT, like other conversational AI models, can generate quick responses to different requests.

However, while ChatGPT is a resourceful tool, it is important to note that AI should not replace human decision-making in procurement. 

This article covers the topic of ChatGPT in procurement, decision-making with AI, and the seven key tips you need to take procurement decisions to the next level.

ChatGPT in Procurement

ChatGPT’s role in procurement is to assist teams in making decisions, including routine tasks. 

These routine tasks may include purchase order routing, supplier evaluations, discussing pricing, and more. Using ChatGPT to assist routine tasks can significantly shorten lead times and lower the chance of manual errors. 

ChatGPT can analyze data to help teams accurately handle supplier evaluations and negotiations. ChatGPT can also generate instant responses to queries from suppliers, customers, internal staff, and other stakeholders.

Moreover, ChatGPT can help professionals make smarter, more data-driven procurement decisions. Data-driven decisions with the help of AI can help procurement teams reduce costs, manage risks, and work more efficiently.

Decision-Making with ChatGPT

How do we use ChatGPT in decision-making? Procurement teams can ask ChatGPT to generate scenarios such as supplier communications, which can help procurement teams conduct analyses on how to approach negotiations and supplier selection processes best.

Should we use ChatGPT to make decisions in procurement? While AI can be resourceful in helping procurement teams make better-informed decisions, human judgment and expertise are still indispensable when it comes to real-time decision-making. 

Yes, ChatGPT can help make various procurement tasks easier, faster, and more efficient. However, we should not forgo human decision-making and oversight, especially in AI applications.

7 Tips for ChatGPT Decision-Making in Procurement

ChatGPT in decision-making will increasingly become a procurement staple, with more businesses applying ChatGPT for procurement scenario simulations, supplier evaluations, and more. Here are the seven key tips you need to know for using ChatGPT in your procurement decisions.

1. Make inputs specific and comprehensive

Have you ever entered a procurement-related prompt into ChatGPT and received a vague—or even inaccurate—response? One of two things could have happened: your input lacked specific, contextual details about your procurement need. Or, ChatGPT simply lacks the capabilities for certain nuanced situations.

When typing your prompt, remember to make the input as specific as you can. This is because ChatGPT may misinterpret a vague prompt, resulting in a less-than-satisfactory answer. 

For example, “Generate a supplier evaluation template.” is too broad of an input. Try to add more details, such as “Generate a performance evaluation template for rice suppliers. Specify standards for product quality, delivery schedules, and ESG performance.”

2. Always fact-check and verify content

In procurement decision-making, procurement teams may use ChatGPT to look up the latest reports on a supplier or business. You may even use ChatGPT to upload and analyze publications on sustainability reports, budget reviews, and more. 

ChatGPT can be useful for analyzing publications and reports, but procurement teams should always remember to fact-check all outputs. ChatGPT doesn’t have access to recent publications or real-time updates on the market, suppliers, or geopolitical issues.

Always research and verify outputs from ChatGPT to ensure your procurement decisions have an accurate basis. Additionally, stay updated on the latest trends, reports, and market conditions through media publications and communication with stakeholders.

3. Use ChatGPT for scenario simulation

Have you ever wanted to practice communications, meetings, or even negotiations with suppliers? In procurement processes, it’s important to prepare for supplier interactions, customer inquiries, and more. 

ChatGPT can simulate negotiations with suppliers to help you improve your negotiation skills or simply find the best communication points. Remember to make your input specific, like this:

“[Talk about the situation, the supplier, and the procurement need]. Simulate a negotiation with a supplier. I am the buyer, and you are the supplier.”

4. Avoid using ChatGPT for real-time decisions

While ChatGPT is useful in assisting procurement decision-making, it should not replace real-time human decisions. 

Procurement teams might use ChatGPT to assist routine tasks like RFP generation, but using AI to make big decisions in purchasing and supplier selection is both irresponsible and high-risk.

ChatGPT must only be used to assist procurement decisions, such as generating emails for supplier communications, simulating negotiations with a supplier, and creating contract drafts; all of which require human oversight for final decisions.

5. Never input confidential data

Several conversations surrounding AI bots like ChatGPT involve responsible use, privacy concerns, and ethical applications. While it is possible to upload files to ChatGPT, it’s crucial to uphold data privacy and security. 

When involving stakeholder information in procurement decisions, procurement teams should remember only to use publicly available data, or data that is provided with full consent of their respective owners.

Never input confidential data. This includes financial information, intellectual property, procurement strategies, confidentiality agreements, employee information, and more. Always uphold respect for data privacy and security.

6. Exercise human judgment and oversight

ChatGPT can be resourceful, providing instant responses to questions and making processes faster as a result. Procurement teams likely use ChatGPT and other AI models to make their routing tasks more time-efficient.

However, procurement professionals should avoid relying on ChatGPT in all their decisions. AI is an incredibly resourceful and insightful tool, but it can’t replace human creativity and critical thinking.

Only use ChatGPT to assist human decision-making, not replace it. Additionally, exercise oversight in teams’ use of AI bots to ensure responsible use.

7. Implement a ChatGPT procurement policy

It can be challenging to oversee every single application of ChatGPT in procurement, especially in large-scale procurement processes. To ensure that ChatGPT is applied responsibly, consider developing and implementing a ChatGPT policy for procurement.

A policy outlines clear clauses and boundaries for applications of ChatGPT in the procurement process. It enlists guidelines and regulations, specifying legal repercussions for non-compliance.

Implementing a ChatGPT policy for procurement lets you harness the AI model to enhance procurement activities while maintaining corporate social responsibility in the process.

My Experience in Using ChatGPT in Decision-Making

For this article, I shared my insights regarding to the use of ChatGPT in making decision.

“If you’re unsure about the agenda or slide deck for either an internal or external meeting, my tip would be to use ChatGPT for setup inspiration. For instance, when preparing for a negotiation recently, I had a vague idea of the agenda and slide deck. So, I asked ChatGPT to suggest a storyline and agenda for the meeting with the supplier. 

Of course, there were some things about the result that I didn’t like or need, but I used it as an inspiration. In that way, it helped me to skip some steps since I already had my own idea, I simply used ChatGPT for inspiration. I then got to the result faster and it saved me critical thinking time. In the end, never stop thinking about yourself. But if you use ChatGPT for inspiration, you can do tasks better, and faster; and the outcome will be of high quality.”

Marijn Overvest

CEO/Founder, Procurement Tactics


To sum up, ChatGPT in procurement decision-making offers significant benefits, such as faster processes with fewer manual errors, but it is equally important to maintain a balance between AI capabilities and human creativity.

With the right approach—which includes implementing a policy with clear guidelines— organizations can leverage ChatGPT in procurement decisions, making processes more efficient without compromising critical decision-making and human oversight.

Frequentlyasked questions

How does ChatGPT contribute to decision-making in procurement?

ChatGPT is a conversational AI model that can help procurement decisions by generating quick responses to various requests. It boosts data-driven decisions in procurement tasks.

Can ChatGPT replace human decision-making in procurement processes?

ChatGPT should only enhance decision-making by making processes faster, but it should not replace human judgment in real-time decisions.

How specific should inputs be in ChatGPT for procurement decision-making?

Inputs should be specific and measurable to decrease the chances of less-than-satisfactory responses. Detailed prompts that include context and measurable elements result in more accurate answers.

About the author

My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.

Marijn Overvest Procurement Tactics