ChatGPT Procurement Trends — 5 Insights for 2024

ChatGPT trends in 2024 depend on several factors and could be decided by consumer behavior, industry trends, and advancements in AI technology. ChatGPT is set to change traditional methods of completing everyday tasks in procurement.

In this article, I will explore the trends that are taking the worlds of AI and procurement by storm, its impact on procurement, and the companies that are using ChatGPT in their business functions.

ChatGPT in Procurement

Since its release, ChatGPT has seen tremendous growth, with over 100 million people in its user base and more than 10 million queries daily. 

OpenAI first launched ChatGPT in 2022, and the model has since transformed how we work in procurement. More companies are exploring how it can help them negotiate better, or how it can analyze documents for smarter and faster workflows.

Overall, procurement automation and AI solutions are constantly growing over the years. These solutions aim to build smarter ways of approaching procurement, sourcing, negotiations, and others.

5 ChatGPT Trends to Expect in 2024

Since ChatGPT’s launch in 2022, procurement professionals have recognized its ability to process contracts, negotiate, summarize documents, and more. 

Over the years, use cases of ChatGPT in procurement have increased. In 2024, we’re looking at the five transformative trends we expect to see more of in procurement.

1. More Personalization

Because ChatGPT goes through regular updates, we’ll likely see more applications where the AI easily adapts based on the users’ roles, needs, and past interactions. This could increase user satisfaction significantly, making ChatGPT a must-have in day-to-day procurement activities.

Moreover, procurement professionals can access more personalized conversations. This is due to a recent update announced on April 12, 2024, when OpenAI said users can enjoy a more conversational, direct, and less verbose experience with ChatGPT. As a result, procurement workflows become easier, faster, and even better — this helps professionals remain proactive.

Additionally, AIPRM conducted a 2024 survey where 20.8% of respondents believe ChatGPT is going to create a more personalized user experience in the near future. This could signify a growing expectation for AI tools to cater to user needs and preferences.

2. Emotional Intelligence in SRM

ChatGPT, along with other conversational bots, will be better equipped to handle negotiations in procurement. An update announced on April 12, 2024, is said to increase the model’s context retention and understanding of human emotion.  With improvements such as this, procurement professionals can experience a better way to manage supplier relationships with AI interactions that are more human-like.

This updated feature can help procurement professionals in supplier communications, allowing for a better understanding of conversational contexts. Stronger partnerships with suppliers and more constructive conversations are just some of the benefits we can expect.

Though it is not perfect, ChatGPT can answer with more empathy and even recommend ways to resolve negotiation arguments. Why is this useful? You can use it to resolve conflicts or answer simple queries in procurement functions.

3. Negotiation Simulations

ChatGPT-generated simulations as negotiation training are set to rise in 2024 as more people recognize its potential to help procurement professionals practice negotiating. This means that ChatGPT-created negotiation simulations could become more meaningful, generating more diverse scenarios and nuanced replies.

A KPMG report in late 2023 found that ChatGPT improves negotiation outcomes by 4-5%. This number signifies the growing role of AI models like ChatGPT in helping procurement professionals focus on negotiation preparation rather than smaller routine tasks.

It can simulate interactive scenarios where users can role-play negotiations with suppliers, practicing counter proposals, negotiation tactics, and problem-solving. These practice sessions are key in helping procurement professionals prepare as much as they can for negotiating terms and closing deals in real-world situations.

4. Automating Repetitive Tasks

Procurement professionals will increase their use of AI to automate routine procurement tasks while they focus on core functions. This change in the use of AI can help professionals automate certain tasks to shift the focus onto more core activities. This frees up time and resources, which lets teams prioritize the bigger picture.

McKinsey reports in 2024 that one-third of routine tasks could be automated. With ChatGPT, procurement professionals can automate RFI and RFP creation, supplier research, data entry, and more. 

Because GPT-4 can process documents and give accurate, effective answers, we can expect more applications of ChatGPT models in 2024. In procurement, ChatGPT can be used to create documents for tasks seen as repetitive and non-core.

5. Cross-Language Support

ChatGPT is proficient in understanding many languages, which makes it ideal for handling queries from international suppliers. Multilingual models are ideal for bridging communication gaps between suppliers from—for example, the United States — to suppliers in Italy.

A 2024 survey held by AIPRM found that nearly 9% of ChatGPT users believe future updates could improve its translation capabilities. The number suggests that users are looking for even greater language precision and cultural understanding in AI tools.

Procurement professionals are likely to harness this even more in 2024 with recent updates to make ChatGPT more accurate in grasping context and diverse languages. This is useful in global procurement, where professionals communicate with multiple suppliers who speak different languages.

An Insight on ChatGPT Procurement Trends

According to the forecasted procurement trends of 2024, conversational AI bots like ChatGPT are set to impact the year’s procurement field. Let’s look into some companies that we know are already using ChatGPT for procurement functions in 2024. 

1. Bain & Company

Bain & Company integrated ChatGPT into its management systems to help boost its research process as well as optimize its procurement processes. In a partnership with OpenAI, Bain aims to automate tasks, such as drafting procurement documents and selecting its suppliers. 

According to Forbes Australia, they partnered with Coca-Cola to implement this strategy to boost its procurement capabilities using ChatGPT. This partnership enabled both companies to deliver precise insights and agile solutions to their clients.

2. GEP

We all know GEP is a major player and leading provider of procurement and supply chain solutions. Using ChatGPT, GEP enhances its procurement services by drafting Statements of Work (SOWs) and analyzing spend data. It frees up time for procurement professionals while letting them focus on core strategies. 

More on this, GEP uses ChatGPT to monitor supplier risks, allowing for predictive analytics to anticipate disruptions and recommend ways to prevent them from happening. 

GEP’s use of ChatGPT is what allows for better management of supplier partnerships, inventory levels, and supply chains.

3. Snapchat

One of the most widely known social media platforms, Snapchat, uses ChatGPT for supplier collaboration. Snapchat’s procurement team uses ChatGPT for better communications with suppliers. 

Furthermore, Snapchat’s aim through automation is to speed up things like data entry and tracking orders for its procurement department. This allows its teams to focus on negotiations and supplier management.

4. Instacart

As a grocery delivery service, Instacart uses ChatGPT to monitor inventory by automating certain tasks. This is especially crucial in managing supply chains for companies that operate on e-commerce fronts. 

With ChatGPT, Instacart gets its insights to adjust inventory levels. This not only helps Instacart keep its customers happy but its suppliers as well.

5. Ro

Ro is a healthcare technology company, and in a feature by Una, the company revealed that its teams have been experimenting and using ChatGPT to simulate negotiations. 

These simulations are designed to prepare Ro’s procurement teams for actual negotiations by studying different communication styles and predicting potential outcomes. This helps Ro refine its tactics when approaching negotiations, helping them achieve positive outcomes in supplier agreements.

Conclusion

To sum up, 2024 is the year ChatGPT becomes even more of a catalyst for smarter procurement. It can automate non-core tasks and improve decision-making for procurement professionals across sectors.

In recent years, more companies have turned to automation in sourcing, negotiations, logistics, and more to maximize the value of time and resources. ChatGPT plays a major part in how differently we approach procurement compared to traditional methods.

Overall, we can expect to see even more applications of ChatGPT in procurement to further boost companies in becoming more efficient and well-adapted to 2024’s procurement environment.