Agentic AI and AI Agents Transform Procurement Efficiency

By Shaz Khan, CEO and co-founder of Vroozi

Image: Getty

Procurement leaders face mounting pressure to do more with fewer resources while maintaining compliance and productivity. Artificial intelligence (AI) offers a solution, but confusion persists between AI agents and agentic AI—two complementary technologies reshaping procurement.

AI Agents: Task Automation Specialists

AI agents are process-driven assistants that require human input to execute tasks. Examples include voice assistants like Siri or chatbots that streamline procurement workflows. Key use cases:

• Automating invoice processing (reducing 20-minute tasks to seconds)
• Supplier sourcing and onboarding
• Generating purchase orders

However, AI agents have limited autonomy and need manual updates for improvements.

Agentic AI: The Strategic Decision-Maker

Agentic AI operates with minimal human oversight, analyzing real-time data to make recommendations. For example, it can:

• Optimize tail spend by identifying cost-saving supplier alternatives
• Predict supply chain disruptions and suggest mitigation strategies
• Autonomously manage supplier risk profiles

Synergy in Action

Combining both technologies unlocks greater efficiency:

1. An AI agent (e.g., chatbot) receives a request like "Need a laptop for new hire Sarah starting Thursday."
2. Agentic AI determines Sarah’s role-based requirements and sources the best option.

Implementation Roadmap

Procurement teams should:

1. Educate staff on AI frameworks
2. Experiment with pilot projects
3. Improve data quality—AI depends on clean, structured inputs
4. Strengthen governance for autonomous processes
5. Integrate AI into defined workflows

The Future of Procurement

AI won’t replace professionals but to focus on strategic work. As terminology evolves, the focus will shift to —reducing costs, improving efficiency, and enabling smarter decisions.