CFOs see promise in GenAI for procurement, but standards lag behind
A growing number of finance leaders are betting that generative AI could reshape procurement—if only the rules were clearer.
According to new data from PYMNTS Intelligence’s March 2025 CAIO Report, 73% of enterprises are actively exploring how generative AI (GenAI) can drive procurement efficiency.
CFOs, in particular, see an opportunity to go beyond incremental cost-cutting and use AI to unlock agility, streamline workflows, and elevate procurement from a support function to a strategic lever.
Yet for all the enthusiasm, a lack of clear operating standards remains a significant obstacle.
Procurement often flies under the radar in enterprise innovation discussions, despite its role as the gatekeeper of supplier relationships, sourcing strategy, and spend management.
For many CFOs, it’s also one of the more inefficient corners of the business—rife with manual contract processing, fragmented communications, and time-consuming invoice approvals.
GenAI offers a path out. Its capabilities—from natural language generation to intelligent data extraction—are particularly well-suited to the repetitive, rules-based processes that still dominate procurement.
High-impact firms, those with mature tech infrastructure, are already leading adoption. Thirty percent have deployed GenAI for procure-to-pay automation, while nearly half are still in the evaluation stage, according to the report.
For finance leaders, the goal is not just automation but intelligence. GenAI can offer visibility into supplier consolidation opportunities, surface unapproved spending, and provide sourcing alternatives that drive real savings.
But even as pilot projects expand, governance concerns loom large.
Nearly four in ten CFOs say the lack of transparent operating standards is either a moderate or significant barrier to GenAI adoption.
Without frameworks for accountability, traceability, and data privacy, enthusiasm is tempered by risk management realities.
“CFOs are grappling with how to invest confidently when the rules of the game aren’t clear,” the report notes.
Concerns include the auditability of GenAI outputs, intellectual property rights, and algorithmic bias.
For finance leaders used to regulatory scrutiny and clear reporting lines, the idea of deploying tools that may be difficult to explain—or defend—is a red flag.
Despite the ambiguity, few CFOs are walking away from GenAI altogether. Instead, they are calling for stronger, industry-wide frameworks that promote responsible innovation.
Whether those standards emerge from regulators, industry bodies, or large enterprises themselves remains an open question.
What is clear is that finance leaders will play a central role in shaping GenAI’s trajectory in procurement.
As early adopters gain insight into the technology’s strengths—and its risks—they are also laying the groundwork for broader adoption.
In the meantime, the procurement landscape stands at a crossroads: rich in potential, but waiting for the guardrails that will define how far and how fast GenAI can go.