New Year Insights for the procurement solutions and services marketplace 2024: Pactum

For several years now, Spend Matters has been collecting and publishing a series of articles about procurement, supply and services trends for the year ahead from expert tech and service providers in the market.

This year we’re highlighting the customer demands, market movements and advances in procurement tech that are exciting the world of solution providers, how they expect them to shape the S2P landscape next year and how they plan to respond to them.

Our series runs from mid-December to mid-January, then our senior analysts will wrap up with their own take on the key themes that emerge.

In no order of preference, other than by the date they arrived in our inbox, today let’s hear from:

Martin Rand, CEO of Pactum, and Fabio Herle, EPM — Head of EMEAI Markets at autonomous negotiations suite Pactum AI.

A new era in procurement: Embracing the integration of generative AI in 2024

As we look towards 2024, it’s evident that the procurement technology landscape is poised for significant transformation, particularly with the integration of generative AI. This technology is currently progressing through the hype cycle, and its eventual convergence with existing procurement tools is expected to create a more efficient, intelligent and adaptive S2P ecosystem.

After its phase of hype and experimentation, generative AI is expected to mature and find practical applications in procurement by 2024. This advancement will enhance the capabilities of procurement organizations, e.g., allowing for even more nuanced and context-aware negotiations, better decision-making and more personalized interactions with suppliers.

As generative AI merges with established procurement platforms, we anticipate a seamless integration of AI capabilities into core procurement processes. This means enhanced collaboration with ERP, P2P and other procurement systems, enabling a more holistic and interconnected procurement strategy.

With the advancement in AI, predictive analytics will become more accurate and insightful. Procurement can leverage this to conduct more sophisticated negotiations, for example, by predicting supplier behavior in order to achieve Pareto optimal deals.

Generative AI’s ability to process vast amounts of data and learn from interactions will lead to hyper-personalized procurement experiences. Procurement can use this to further tailor supplier interactions to the specific needs and preferences of each business, ensuring more effective outcomes.

As generative AI moves beyond the hype, businesses will seek technologies that offer real, tangible benefits. The focus of business users will be on leveraging clear value, such as cost savings, efficiency gains and strategic advantages.

In conclusion, the year 2024 is shaping up to be a pivotal one for procurement technology, with the maturation and integration of generative AI into existing platforms. This convergence is expected to bring about more sophisticated, personalized and strategic procurement solutions, helping businesses navigate complex procurement challenges across the whole spend more effectively. As these technologies evolve, they promise to transform procurement from a functional necessity into a much more strategic asset.

Many thanks to Pactum for being a part of the series. You can read our in-depth analysis of Pactum’s solution here.

Read our senior analyst’s take on the key themes from the series here.

If you need to find the right procurement technology provider or service for your business needs next year, try Spend Matters TechMatch for a free rapid shortlist.

For granular analysis and comparisons of procurement technology solutions, subscribe to Spend Matters Insider.

As always, reach out to discover how Spend Matters can help with your new year commitments and wishes.