JAGGAER Blog GenAI and the Skills Gap in Procurement

In the Hackett Group's Enterprise Key Issues Study, 89% of executives across business functions said their organizations are advancing GenAI initiatives, up from 16% in the prior year. A July 2024 Gartner survey also found that 72% of procurement leaders are focusing on incorporating generative AI, anticipating a shift towards strategic decision-making and innovation. Procurement leaders recognize the imperative in front of them, but what does it mean for the future skills profile of the profession? The implications of this seismic change should not be underestimated. I recently hosted a panel discussion with Elizabeth Zucker, Senior Director, Procurement Advisory North America at The Hackett Group, and Martin Adamek, Senior Manager, Procurement at TE Connectivity. We examined some of the huge challenges that procurement will face in adopting GenAI in the coming years, with a particular focus on talent management. I kicked off proceedings by pointing to the Hackett Agenda, finding that there is an 8.8% productivity gap in procurement and an 8.9% efficiency gap. "As procurement's responsibilities have expanded, team sizes have not kept pace," Elizabeth Zucker said. "Hence the need to invest in new technologies." Elizabeth elaborated on the Hackett Group's findings regarding "Procurement Trends with a Transformational Impact." [...]