Taking the first steps: How SMBs can start their AI journey in procurement

Adopting artificial intelligence (AI) in procurement might sound like a daunting challenge for small and medium-sized businesses (SMBs), but the key to success lies in starting small and staying strategic. Rather than diving headfirst into complex AI systems, a structured and gradual approach can make the transition smoother and more rewarding.

So, where should SMBs begin? Here is a practical roadmap to help lay a strong foundation for AI-driven procurement.

Step 1: Get leadership on board

Before introducing any AI tools or automation, the first and most crucial step is securing dealmaker buy-in and sponsorship. Leadership needs to understand that AI is not just a futuristic concept; it is a tangible, practical tool that can streamline procurement, cut costs and improve decision-making.

Building a strong business case is essential. How will AI help the organization save time and money? Can it reduce buying cycle times or enhance supplier risk management? Presenting clear, quantifiable benefits will help win the support needed to move forward.

Step 2: Define clear goals and priorities

One common mistake businesses make is trying to implement AI across all procurement functions at once. Instead, it is smarter to start with a focused approach that targets the most pressing challenges.

Would AI be most beneficial in automating invoice processing, improving supplier insights or detecting cost-saving opportunities? By setting specific, measurable goals, like reducing contract approval times by 30% or cutting ad-hoc spending in half, businesses can track progress and demonstrate early wins.

Step 3: Get your data in order

AI is only as good as the data it relies on. If procurement data is incomplete, unstructured or scattered across different systems, AI tools will not be able to generate reliable insights. That is why data readiness is a critical step in the AI adoption journey.

SMBs should start by assessing their current data landscape — where does procurement data come from, how is it stored and how clean is it? Establishing basic data governance policies early on will ensure that AI-driven insights are accurate and actionable.

Step 4: Leverage existing AI solutions

The good news? SMBs do not need to build AI solutions from scratch. Instead, they can tap into existing technology vendors and service providers that offer AI-powered procurement tools designed specifically for smaller businesses.

Many solutions supporting purchasing processes already include automation, advanced analytics and supplier intelligence features, eliminating the need for costly custom development. It is also worth reviewing existing software — some current tools may already have AI capabilities that can be activated or expanded upon.

A smart start for AI in procurement

For SMBs, the journey into AI-powered procurement starts with:

• Getting leadership support by showcasing AI’s business value.
• Setting clear goals to focus efforts on high-impact areas.
• Ensuring data is clean, structured and ready for AI use.
• Exploring existing AI tools that fit SMB needs and budgets.

By taking a practical, step-by-step approach, SMBs can start unlocking the benefits of AI, such as automating tedious tasks, improving decision-making and optimizing procurement strategies. AI implementation is a journey, but starting small and scaling up strategically will set businesses on the right path for long-term success.

For a more in-depth exploration of AI in Procurement, read the AI Leadership Guide for Procurement.