The AI procurement agenda is changing – here’s what to pay special attention to

Many companies are already investing in a wide range of systems, ERP, customer service platforms, inventory management, and accounting software. In practice, all of these solutions include components based on AI making them part of the company’s overall procurement decisions. The question is no longer whether AI should be part of the procurement strategy but whether the organisation is ready to take on the responsibility that comes with it.

Too often, AI is still seen as a purely technical application that belongs in IT. This limits the benefits, development, and robustness of the solution. In reality, AI is a business-critical technology that impacts strategy, ethics, and the business model. A clear example of these implications is Amazon’s recruitment too, where the algorithm showed systematic bias against women, with serious consequences for both reputation and hiring practices.

AI must align with business strategy

It’s not just about choosing the cheapest vendor when procuring systems and solutions. The technology, especially the AI behind it, must align with the company’s needs, values, and long-term goals. If the requirements specification isn’t precise in these areas, decision-makers risk ending up with a solution where the AI doesn’t integrate with the rest of the organisation. In the worst case this leads to fragmented, inefficient implementation that pulls the company in different directions and undermines the business strategy.

Contract management is therefore crucial when working with AI as the technology evolves continuously and requires ongoing adaptation. AI solutions must be tied to business outcomes that make it possible to track whether the solution delivers the desired results and identify who is responsible if it doesn’t, such as when a chatbot provides a bad customer experience. This also enables better contract governance.

Ethics and accountability in AI procurement

AI is not value-neutral. Solutions with bias, lack of transparency, or poor accountability can have serious legal, reputational, and financial consequences. Ethics and responsibility must be a fixed element in the requirements specification. Procurement plays a central role in setting the standard by demanding transparency, data security, and responsible AI use. The department must also ensure that both the vendor and the business continuously monitor how the solution performs in practice and check that ethical considerations are integrated both during acquisition and in daily operations.

This also requires the company to establish proper control over how AI processes data. This can be done through monitoring, audits, and other forms of systematic follow-up to ensure the solution continues to meet both internal standards and external requirements.

Evaluate and evolve AI

When companies invest in digital solutions that include AI it’s essential that the AI component doesn’t fade into the background after implementation. AI must be continuously evaluated and developed as an integrated part of the overall solution.

This means that the vendor and solution evaluations during procurement must include checking how the AI component actually performs: does it support the desired business goals or the outcome-based requirements from the business? Is it adaptable? And does the vendor provide the necessary documentation, maintenance, and development?

Since AI can change behaviour and function over time due to data, usage patterns, or updates there must be established procedures for follow-up. If the AI component isn’t part of ongoing evaluation and governance, the company is at risk of ending up with a solution that no longer aligns with its needs or values. Actively involving AI in the further development and assessment of solutions is therefore crucial to ensure operational reliability, business value, and responsible use. This is also closely linked to effective contract management.

Use AI strategically, not tactically

AI is not just another feature in the company’s tech stack, it’s a foundation for the business of the future. Seeing AI as a strategic opportunity is non-negotiable. The solutions that will drive companies forward must not only be well implemented, they must be forward-looking and continuously adapt to the company’s development and goals. AI is a long-term investment that requires strategic anchoring, it should not just be an isolated tech decision.

AI is no longer something that “happens in IT.” It’s being purchased, implemented, and shaped through procurement. And it all starts with the decisions made by the procurement department.

Read the article in Danish Computerworld.