Only 2% of organisations report full AI integration, while data quality, skills shortages and legacy systems continue to limit wider deployment
Artificial intelligence is gaining ground in procurement, supplier risk and sustainability management, but most organisations remain at an early stage of deployment, according to new research from Achilles.
The supply chain risk and sustainability survey, which collected responses from 2,805 organisations across Australia, Brazil, France, Germany, Italy, the Middle East, Norway, Spain, Sweden and the UK, found that 37% of respondents are piloting, operationalising or widely deploying AI in procurement, supplier risk or sustainability activities.
However, only 2% said AI is widely deployed or fully integrated across their organisation, highlighting the gap between experimentation and mature implementation.
AI adoption varies across sectors
The research indicates that AI adoption differs considerably by industry.
Information Technology recorded the highest active adoption rate among sectors with at least 25 respondents, at 62%. Marine Transport followed at 56%, while Ground Transport reported the lowest rate among the larger sectors at 26%.
The difference between the highest and lowest adoption rates was 36 percentage points, suggesting that organisations are progressing at significantly different speeds depending on their sector and technology readiness.
Overall sentiment towards AI in procurement was largely positive. Some 45% of organisations reported a favourable view of AI, compared with 7% that viewed it negatively.
Process automation leads AI use cases
Organisations are primarily applying AI to practical procurement and supplier management activities rather than broader transformational initiatives.
The most frequently reported applications include process automation, virtual assistants and chatbots, supplier management and risk mitigation.
The main benefits identified by respondents were improved process efficiency, reducing employees’ involvement in repetitive tasks and supporting better data-driven decision-making.
These applications indicate that organisations are initially using AI to address operational workloads and analyse information rather than relying on the technology to independently make critical procurement or supplier-risk decisions.
Data and skills remain major barriers
The survey found that the challenges preventing wider AI deployment extend beyond the technology itself.
Organisations cited a lack of internal skills and data science capabilities, difficulties integrating AI with legacy systems and enterprise resource planning platforms, poor-quality or unclean data, and a lack of strategic prioritisation as key barriers.
Supplier data quality is particularly important for organisations seeking to apply AI to risk and sustainability management. AI systems can process large volumes of information and identify potential risk indicators, but their outputs remain dependent on the accuracy, completeness and consistency of the underlying data.
AI does not replace supplier due diligence
The findings also highlight the continuing importance of established supplier risk management processes.
AI can assist organisations in analysing information, identifying potential risks and reducing manual workloads, but it cannot compensate for incomplete supplier information or eliminate the need for supplier validation, continuous monitoring and human assessment.
Adam Whitfield, Head of Global Compliance and ESG at Achilles, said:
“AI is no longer a talking point in procurement; it is being put to work. With more than a third of organisations surveyed already piloting or using AI in supplier risk and sustainability, the question has shifted from whether to adopt, to how to do it well.
“The harder truth in the data is that full deployment is still rare. AI delivers value in supplier risk management only when it sits on trusted data, clear governance and the ability to fit into existing procurement processes. If the foundations are wrong, AI simply scales the problem.
“AI can help organisations spot risk faster, strip out manual effort and see further into complex supply chains, but it does not replace robust supplier data or human judgement. The organisations that gain the most will be those that pair AI with strong supplier validation, reliable sustainability data and continuous monitoring, to allow for a more holistic understanding of supply chain networks.”
Supply chain visibility remains a challenge
The findings come as organisations face increasing pressure to improve supply chain visibility, strengthen supplier resilience and address sustainability and non-financial reporting requirements.
Achilles’ wider research found that only 6% of organisations have full visibility beyond their Tier 1 suppliers. Limited visibility across lower-tier suppliers can make it more difficult to identify and assess risks further along complex supply networks.
For organisations scaling AI, the quality of supplier information is therefore likely to remain a critical factor. Applying AI to incomplete or inconsistent data could reproduce or amplify existing gaps in supply chain visibility rather than resolve them.
The survey suggests that successful AI deployment in procurement and supplier risk management will depend not only on technology adoption but also on data quality, governance, system integration and established supplier due diligence processes.
