TLDR: Gartner reports that generative AI in procurement has entered the “trough of disillusionment” due to challenges with integration, data quality, and inflated expectations. Despite this, early adopters are realizing benefits in efficiency and cost savings, and the technology is still projected to reach full productivity within five years.
Generative AI (GenAI) in procurement has officially entered the “trough of disillusionment,” according to Gartner’s Hype Cycle for Procurement and Sourcing Solutions 2025. This phase signifies a period where initial hype wanes as organizations confront the practical challenges of integrating and leveraging the technology. While early adopters have reported tangible benefits in process efficiency, enhanced data insights, and cost savings, many companies are grappling with fragmented data, complex platform integration, and unmet expectations.
Kaitlynn Sommers, a senior director analyst at Gartner, noted that while GenAI is indeed delivering on its promise of efficiency and savings, “fragmented data and platform integration challenges are slowing progress.” The report highlights that despite these roadblocks, GenAI is already demonstrating practical applications in procurement, including automating tasks such as supplier recommendations, contract management, and generating “Request For” documents. Organizations that delay adoption risk falling behind competitors who are actively advancing their AI initiatives.
Challenges hindering widespread adoption include fragmented and low-quality data across procurement systems, which can lead to inaccurate outputs. Integrating standalone GenAI solutions with existing platforms also presents complexity due to differing technical specifications. Beyond technical hurdles, organizations face concerns regarding job security, skepticism about AI-driven insights, resistance to change, high and unpredictable costs, and emerging regulatory requirements concerning privacy, intellectual property, and trust.
Despite the current challenges, Gartner remains optimistic, projecting that GenAI for procurement will achieve full productivity within five years. Sommers emphasized that “early adopters who address current challenges now are best positioned for long-term success.” To navigate this phase, Gartner advises Chief Procurement Officers (CPOs) to invest in robust data infrastructure to standardize and integrate information, ensuring more reliable insights. Additionally, CPOs should explore vendors offering embedded GenAI capabilities and assess their alignment with enterprise strategies and desired business outcomes.
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GenAI-enabled procurement applications are expected to automate time-consuming, repetitive tasks such as knowledge discovery, summarization, contextualization, workflow, and execution. As these tools mature, procurement organizations can anticipate significant boosts in productivity and efficiency, reduced operational costs, and the ability to reallocate staff to higher-value activities like strategic decision-making and supplier management. The Hype Cycle also notes that GenAI is not alone in the trough of disillusionment, with other procurement technologies like sustainable procurement applications and advanced contract analytics also residing in this phase.
