ChatGPT in Procurement Statistics – 18 Key Figures

Staying ahead of your competitors is a must if you want to be successful in this fast-evolving industry. AI tools like ChatGPT are providing a new and innovative solution that is changing the way procurement professionals do their jobs.

Since its first launch to the market in 2022, ChatGPT has gained a lot of interest and has been used by some organizations. It helps enhance efficiency and bring innovative changes in various aspects of procurement. 

In this article, we will delve into the statistical insights surrounding the integration of ChatGPT in procurement, and its impact on modern procurement practices.

I have created a free-to-download, Productive Procurement with ChatGPT Toolkit template. It includes a PDF file that contains prompts that can help you streamline procurement process and boost efficiency. I even created a video explaining how to use the templates.

With this being said, let’s now dive into the statistics of ChatGPT in procurement.

ChatGPT in Procurement 18 Key Figures

Here are 18 key figures about ChatGPT in procurement: 

1. 198 Out of 804 Procurement Professionals claim to use ChatGPT in their everyday work

According to the ChatGPT in Procurement Report by Procurement Tactics, 198 out of 804 procurement professionals across the globe are using ChatGPT in their everyday work. Furthermore, the number of professionals using this tool is continuously increasing. 

This highlights the industry’s recognition of the technology’s transformative potential, offering benefits such as accelerated research, streamlined procurement processes, decision-making support, cost savings, and enhanced overall efficiency.

2. 25% of Procurement Professionals admit to never using ChatGPT

While ChatGPT can potentially help procurement professionals in numerous aspects, many of them still haven’t used this tech for the work they do. 

In the same survey mentioned above, 25% of procurement professionals have admitted to never using ChatGPT. This indicates that there may be an opportunity to do so to streamline, increase accuracy, and drive innovation to their everyday activities through the AI tool.

3. Over 3,000 procurement emails have been written by ChatGPT

ChatGPT has been used for various purposes including drafting emails and providing reply suggestions. According to Swell, more than 3,000 procurement-related emails have been written by their users through their integration with ChatGPT. 

This automatic email generation saves time while ensuring quality. Swell reports that procurement teams are using ChatGPT for generating longer-form communications such as contracts, product specifications, and reports, as well.

4. Generative AI can contribute $4.4 trillion annually across 63 use cases

Generative AI, such as ChatGPT, has potential significance in various business cases. According to the McKinsey & Company report suggested that generative AI technologies could contribute up to $4.4 trillion annually to the economy across 63 different business projects. 

This highlights the immense value and impact that AI technologies can have on businesses across various industries by enhancing productivity, efficiency, and innovation.

5. ChatGPT boosts organization compliance with regulations, policies, and standards by 18-20%

Blue Prism reports that ChatGPT adoption significantly enhances compliance with regulations, policies, and standards in procurement operations by 18-20%. This shows ChatGPT’s capability to assist organizations in aligning their procurement activities with regulatory requirements, internal guidelines, and industry best practices.

Compliance is an absolute must for procurement operations and integration of ChatGPT in your procurement processes can help you ensure that you comply with these regulations and standards. 

6. ChatGPT speeds up invoice processing time by 90%

According to Blue Prism, the ChatGPT can speed up invoice processing by 90% by extracting information from invoices, such as relevant terms and conditions, dates, and amounts, and then allowing the data to be processed alongside purchase orders to sort payments. 

Through the use of ChatGPT in invoice processing, companies can automate and streamline key functions in the process, freeing staff to focus on more strategic activities, and improving overall productivity and operational efficiency.

7. 74% of Suppliers report increased satisfaction with buyer communication and responsiveness

According to PwC, 74% of suppliers engaged through ChatGPT report increased satisfaction with buyer communication and responsiveness.

This reflects the positive impact of AI-powered chatbots on improving supplier satisfaction with communication and responsiveness. 

However, it’s important to consider potential implications such as job displacement and the need for human oversight to address technical issues and biases in the system.

8. Over 50% of basic supplier administrative tasks can be reliably performed by ChatGPT to save time

In business, time is as precious as gold. Companies can’t afford to lose it, as it could result in significant financial losses, possibly amounting to millions, even billions.

According to KPMG, ChatGPT can handle over 50% of basic suppliers’ administrative tasks. By efficiently managing these tasks, ChatGPT can deliver considerable time savings in procurement operations.

9. ChatGPT adoption lowers stockout instances by 3-5% in inventory planning

Incorporating ChatGPT into inventory planning processes has been found to lower stockout instances by 3-5%, as highlighted in the Capgemini study. This shows that ChatGPT integration can help businesses enhance their inventory planning capabilities, resulting in better stock management, minimizing stock shortages, and increased customer service, high sales, and overall efficiency in inventory operations.

Stockout is a nightmare for a company. Without sufficient inventory, a business cannot meet their customer demand which leads to potential sales losses and customer dissatisfaction. However, the ChatGPT integration will help businesses reduce this stockout and have better inventory planning.

10. ChatGPT-enabled supplier selection drives predictive match rates over 11% higher compared to traditional evaluation

According to Accenture, integration of ChatGPT in supplier selection processes drives predictive match rates over 11% higher than traditional evaluation methods. By enabling procurement professionals to make more informed sourcing decisions, the solution optimizes the supplier network for improved efficiency. 

The ability to generate deeper insights and better collaboration across supply management means that the integration of generative AI, such as ChatGPT, promises to revolutionize procurement and raise the bar for supply chain management overall.

11. ChatGPT’s contract analysis reduces dispute-induced delivery delays by 4-5 days and saves over $100,000 annually for mid-size enterprises

PwC suggests that using ChatGPT in their contract reviews can cut dispute-induced delivery delays by 4-5 days, saving over $100,000 annually for a mid-size enterprise as it speeds up contract reviews, improves analysis accuracy, and minimizes discrepancies that could lead to legal issues.

For law firms, it is seen as a cost-effective option, converting reduced man-hours into monetary savings. In procurement, it delivers added value through valuable insights for negotiation strategies and tracking of contract milestones, as well as aiding vendor selection, ultimately enhancing cost savings and efficiency in business processes.

12. ChatGPT automation boosts strategic sourcing time by over 60%

ChatGPT automation has led to a more than 60% increase in strategic sourcing time, according to PwC.

By automating the “high-volume, repetitive manual tasks such as PO creation, market research and report generation for categories,” ChatGPT has eliminated grunt work and allowed organizations to dedicate more time to strategic pursuits, which has significantly increased productivity.

13. AI adoption increases spend management by 5-8%

With the adoption of AI, spend management experiences a 5-8% increase, according to KPMG. The use of AI in financial reporting and services not only enhances efficiency but also contributes to cost reduction in various areas like supplier negotiations, demand planning, contract reviews, and invoice processing.

Despite some financial services business leaders believing AI is more hype than reality, the sector is making significant progress in adopting and implementing AI solutions. Organizations are transitioning from experimentation to the operationalization of AI, marking a positive trend in the industry.

Generative AI can help empower employee productivity through assisted decision-making, improving data analysis, and aiding in creative processes. In this context, CFOs and finance leaders play a pivotal role in leading the adoption of generative AI, offering a balanced approach to cost-efficiency strategies that simultaneously drive growth and value.

14. ChatGPT-enabled data analysis reduces downstream costs by over 12% through preventative risk mitigation

The use of ChatGPT-enabled data analysis has been demonstrated to reduce downstream costs by over 12% through preventative risk mitigation, as reported by Capgemini. 

This technology enables real-time data analysis, strengthening site monitoring and safety protocols, facilitating proactive risk mitigation, and ensuring a secure working environment. 

Additionally, the application of ChatGPT in procurement and supply chain management has the potential to revolutionize these areas, leading to significant cost savings through the identification and mitigation of potential risks in contracts, deliveries, quality, and relationships. 

Furthermore, ChatGPT can be utilized in various business contexts, including optimizing website content, interpreting data, improving customer support, and analyzing contracts and legal documents to ensure compliance with regulations.

15. 83% of suppliers report positive experiences with ChatGPT resolves supplier queries instantly and improves partnerships

According to a PwC survey, 83% of suppliers report positive experiences with ChatGPT, which resolves supplier queries instantly and improves partnerships. 

Since its launch in 2022, ChatGPT has made AI remarkably accessible and scalable and has been widely adopted by a lot of companies in their business needs. 

It is used in various aspects of businesses, including instant query resolution for suppliers and partnership enhancement through feedback analysis.

16. Use of AI to identify sustainability opportunities and reduce carbon emissions by 5% on average 

A recent study by Boston Consulting Group (BCG) found that applying AI to identify sustainability opportunities in processes, materials or suppliers can reduce carbon emissions, on average, by 5%. 

The study reveals that AI is proving promising to drive responsible sourcing and reduce carbon emissions. The research also illuminates the criticality of laying the organizational and technology foundations required to scale AI solutions across production networks.

17. AI-enabled contract authoring decreases rework of tasks by 8-10%

AI-assisted contract authoring can reduce rework by 8-10% by identifying oversights early, according to the estimates by Deloitte. Contract management tasks include many manual steps—drafting, reviewing, approval, renewal and even looking for contract data that can aid in certain decisions. They can be laborious and error-prone. 

AI-powered tools for contract management speed these processes with unmatched accuracy and automate many of the routine manual tasks, reducing durations from days to hours or sometimes minutes, and cutting the possibility of human error.

AI can also interact with existing contract management solutions, which are designed to handle thousands of contracts without resource constraints—unlike most human lawyers. An AI solution can read contracts like a veteran lawyer, only many thousands of times faster, making risk identification and compliance assurance that much more efficient.

Furthermore, AI can assist with contract negotiations by suggesting optimal terms based on historical data, ensuring everyone is working on the latest contract. AI, ultimately, can revolutionize the way contract management processes work by working with multiple contracts to automate and enhance workflows and decision points for a legal professional or contract manager, impacting businesses as a whole.

18. AI’s potential to create $9 trillion in value across supply chain management by 2035

The potential for AI to create value across the supply chain is more than $9 trillion by 2015, according to McKinsey. Indeed, early adopters that have already implemented and scaled AI-enabled supply chain management have boosted their logistics cost efficiency by 15% and inventory levels by 35%, and have improved service levels by 65% over those with slower adoption. 

Because of its ability to handle massive amounts of data and code, understand relationships, create visibility into operations, and help support better decision-making, AI has the potential to be a massive game changer in supply chain management.

However, to capture the full value of AI, companies must go further, investing in change management and capability building. This can lead to companies being more resilient, and sustainable, and have the ability to transform cost structures—a multiple of what humans or machines alone could achieve.

What is ChatGPT in Procurement?

ChatGPT in procurement refers to the use of OpenAI’s ChatGPT, an AI-powered tool into your procurement process.

ChatGPT is used for tasks such as communication assistance, technical support, information gathering, and research. It is also used in problem-solving, strategy development, creative tasks, and many more. 

It allows procurement professionals to drive efficiency, enhance decision-making, and bring more innovative practices to life within its operations.

The Benefits of Using ChatGPT in Procurement

Using ChatGPT for procurement offers several benefits. Here are some of the benefits:

1. Efficiency Improvement 

ChatGPT can make procurement processes more efficient by streamlining certain tasks such as summarizing complex topics, analyzing balance sheets, and evaluating contractual components for risk. 

This automation saves time while also improving the efficiency of decision-making processes.

2. Idea Generation and Strategy Development 

ChatGPT can be used to brainstorm business ideas, marketing strategies, and product features–and aid in the planning or writing of marketing copy. 

It provides the basis for thinking about deriving ideas for products and services as well as procurement strategies and tactics. 

This feature helps in bringing innovation and creativity to the procurement process.

3. Operational Support / Process Optimization

ChatGPT provides support for procurement processes along with supplier evaluation and contractual analysis. By providing guidance and insights in these areas, ChatGPT helps optimize operations and make procurement activities more efficient.

4. Educational Support and Learning 

ChatGPT offers educational assistance by providing explanations, study tips, and homework support for students in procurement and logistics. This allows for enhanced learning possibilities and aids in the continuous improvement of procurement knowledge and skills.

5. Market Research and Supplier Identification 

It can be useful in conducting market research, supplier identification, and gathering product or service information.

ChatGPT helps procurement professionals access relevant data quickly and make well-informed decisions. This efficiency in research can lead to better vendor selection and competitive advantage.

6. Document Creation and Management

Aside from creating professional emails, ChatGPT can also help create different procurement-related documents like requests for proposals (RFPs), tender documentation, and proposal outlines. 

It makes the document creation fast, saving time and effort for procurement professionals and allowing them to focus on other critical tasks

7. Content Creation and Design Prototyping

When it comes to generating ideas, outlines, and drafts for articles, blog posts, or even marketing materials and other products such as designing concepts and brainstorming the UI/UX, ChatGPT can also assist. 

This feature supports innovative content creation and design within procurement and enables procurement professionals to communicate, present, and design solutions in more creative ways, leading to more engagements.

8. Customer Support and Communication Assistance

ChatGPT offers instant customer service, covers frequently asked questions, and supplies very basic help in communication tasks. 

By improving communication efficiency and customer service, ChatGPT raises operational effectiveness within procurement.

Challenges of Using ChatGPT in Procurement

Despite the benefits of utilizing ChatGPT in procurement activities, it also comes with its own set of challenges. These challenges may include the following: 

1.  Reliability and Accuracy

One of the main challenges that procurement professionals will need to deal with when using ChatGPT is ensuring the reliability and accuracy of the information. 

While ChatGPT can generate responses quickly, there is no assurance that the information it will provide is correct. 

Thus, professionals may need to verify and validate the responses to ensure they meet the required level of standards and accuracy.

2. Context and Detail

The level of context users provide is crucial to ChatGPT’s ability to generate reliable responses. When they fail to do so, ChatGPT cannot generate relevant and detailed responses. 

Furthermore, generating analytic insight can give more challenges, as visualizations and detailed information can be difficult to obtain from ChatGPT. As a result, its usability could be equally challenging when it comes to complex procurement scenarios that require richly detailed analyses and insights.

So the next time you make a command make sure to be as detailed as possible yet make your context make sense this way it can deliver the information correctly.

3. Ethical and Privacy Concerns

Another significant challenge is that of ethical considerations and privacy concerns. 

Sharing sensitive procurement information should be approached with caution as users engage with ChatGPT, as data privacy and confidentiality could present potential risks. 

Similarly, maintaining ethical standards in procurement practices will require users to consider potential biases in responses generated by ChatGPT.

4. Language and Communication Nuances

For non-native English speakers implementing ChatGPT in procurement activities, language and communication nuances pose a significant challenge. 

Ensuring that ChatGPT “understands” and generates responses with the correct nuances, tone, and cultural context is essential for meaningful communication. 

Misinterpretations in, or inaccuracies with language nuances can have a tangible effect on the clarity and effectiveness of communication within procurement processes. 

Addressing these challenges will require additional care and likely training to optimize communication outcomes when implementing ChatGPT in a multicultural procurement environment.

Future Trends and Potential of ChatGPT in Procurement

The emergence of ChatGPT in procurement and its implications for the future signal a dramatic transition as businesses take advantage of artificial intelligence to optimize operations.

Key trends in this space will be more robustly integrated into software platforms, enabling natural interactions and automating workflows. Turning data analysis into a revolution, allows teams to make smarter decisions and optimize strategies. 

Personalized recommendations offer better suggestions that improve efficacy and engagement. Automation allows for less time spent on busy work and more time spent on strategic decisions, increasing productivity and efficiency. 

And it is always on, learning alongside procurement to bring continued value to teams that need a way to wrangle complexity and stay ahead. This shift towards increased efficacy, data-driven decision-making, and more personalized approaches places ChatGPT as a strategic voice driving innovation in this new age of procurement.

Conclusion

Since its launch in 2022, ChatGPT has quickly changed the face of procurement. The data illustrates the results of this revolution on efficiency, compliance, and communication—and how it changed procurement operations.

Organizations that make ChatGPT part of their daily workflow reveal additional potential uses—whether for contract analysis, strategic sourcing, or facilitating more efficient supplier communication. Still, reliability, ethical considerations, and the nuances of language must be top of mind.

Trends seen for ChatGPT and AI in general suggest we’re likely to see a shift in procurement strategies—moving toward more streamlined, data-driven, and tailored approaches. Look for ChatGPT to be less of a clever experiment and more of a strategic approach to accelerating innovation.