AI is reshaping procurement and supply chain operations, yet many organizations struggle to implement it effectively. While more than half of enterprises are integrating AI within the next year, most face hurdles that slow progress and limit impact. From unclear use cases to fragmented data and a shortage of skilled talent, these challenges can derail even the most ambitious transformation plans.
This podcast unpacks the top three pitfalls revealed in new research by Foundry and GEP and explains how businesses can navigate them to drive real value.
What You’ll Hear:
- Why understanding AI use cases is the biggest barrier for many organizations
- How data readiness issues like silos, unstructured data and weak governance undermine AI adoption
- How collaboration with experienced AI partners accelerates transformation and minimizes risk
PODCAST SUMMARY
The conversation explores how procurement and supply chain leaders are approaching AI adoption at a time when expectations for speed, accuracy, and resilience are higher than ever. While more than half of enterprises plan to integrate AI within the next year, the research shows that most organizations are still grappling with foundational challenges that limit progress. The hosts unpack why understanding use cases, improving data readiness, and finding skilled talent remain the biggest barriers to scaling AI effectively.
Rising Pressure and Operational Impact
The hosts note that organizations want AI to reduce costs, strengthen decision-making, and increase agility, but many lack clarity on where the technology will deliver the most value. For example, leaders see potential in areas like real-time risk monitoring, automated contract analysis, and predictive supply planning, yet struggle to map these capabilities to measurable outcomes. This uncertainty often leads to stalled initiatives or fragmented pilots that never reach full deployment.
Data remains a major sticking point. Many companies face issues with disconnected systems, unstructured information, and inconsistent governance. These weaknesses slow down AI training and limit the accuracy of insights. The discussion highlights that even organizations with advanced data platforms still battle with silos that prevent full visibility across procurement and supply chain operations.
Talent shortages add another layer of complexity. Because AI skills are still scarce, teams often rely heavily on external partners to bridge gaps in analytics, data engineering, and implementation. The hosts point out that while many companies are investing in tools and audits, fewer are investing in the internal capabilities needed to sustain long-term AI maturity.
How Leaders Can Move Forward
The conversation outlines the steps organizations can take to avoid common pitfalls and tap into the real value of AI. First, leaders must define clear use cases and ensure they align with business needs. Instead of chasing broad transformation, teams should prioritize targeted scenarios where AI can automate tasks, enhance visibility, or accelerate response times.
Second, companies need stronger data foundations. This includes regular audits, standardized governance frameworks, and better management of unstructured data. The hosts emphasize that data readiness is not a one-time exercise but an ongoing discipline that determines how well AI can scale.
Third, organizations should rethink talent strategies. In the near term, external partners play a critical role in guiding implementation and ensuring quality, but long-term success requires building internal competency. Establishing centers of excellence, knowledge-sharing hubs, and continuous improvement processes can help teams grow the skills needed to manage AI effectively.
Conclusion
The episode underscores a clear theme: AI can transform procurement and supply chain operations, but only if organizations address the core challenges holding them back. With thoughtful planning, stronger data foundations, and the right expertise, businesses can avoid the pitfalls that derail AI initiatives and unlock the agility, accuracy, and resilience needed to compete in today’s unpredictable environment.