The Hackett Group® Establishes AI World Class Procurement Benchmarks
MWN-AI** Summary
The Hackett Group, Inc. has unveiled its AI World Class Procurement benchmarks, revealing significant insights into how artificial intelligence (AI) is transforming procurement performance. This research shows that AI-driven procurement strategies can yield up to 3.7 times higher ROI, generate savings up to three times greater, and enhance strategic procurement capacity by as much as 55%. The emphasis on AI in procurement goes beyond merely automating existing processes; it advocates for a comprehensive redesign of the source-to-pay process to maximize efficiency and value creation.
Key findings highlight that AI enhances seller intelligence, improves sourcing effectiveness, and boosts purchasing efficiency. These improvements collectively reinforce one another, enabling organizations to experience reductions in purchase-to-pay costs by up to 80% and staffing needs by up to 81%. The study underscores a shift in focus for procurement teams from administrative tasks towards strategic activities such as supplier management and sourcing optimization.
The benchmarks built upon earlier research, which identified significant performance advantages (up to 75%) for firms undergoing AI-led transformation. As organizations face pressure to strengthen supply chains and maximize profitability, it is imperative for procurement leaders to harness AI for strategic decision-making rather than singular process automation.
In summary, The Hackett Group's AI World Class Procurement benchmarks not only quantify the impact of AI in procurement but also provide strategic direction for organizations aiming to capture greater value. By embracing a full-cycle AI approach within procurement, businesses can position themselves to thrive amid intensified market competition and operational challenges. The research encourages organizations to rethink their procurement frameworks for sustainable growth, operational resilience, and enhanced supplier relations.
MWN-AI** Analysis
The recent research by The Hackett Group highlights how artificial intelligence (AI) dramatically enhances procurement efficiency, revealing benchmarks that organizations can leverage to improve their financial performance. With procurement return on investment (ROI) increasing by up to 3.7X and savings impacts reaching 3X, companies should consider re-evaluating their procurement strategies to realize these significant benefits.
Investors and procurement professionals should note the substantial gains in adopting a holistic, AI-driven redesign of procurement processes compared to merely automating existing tasks. Notably, the research indicates that organizations implementing end-to-end AI solutions can reduce purchase-to-pay process costs by up to 80% and staffing needs by up to 81%. This creates a compelling case for companies looking to enhance supplier relationships and strategic sourcing, rather than merely cutting costs.
As competition intensifies, chief procurement officers (CPOs) are under increased pressure to optimize savings and strengthen supplier performance. The Hackett Group’s findings suggest that the next phase of AI adoption will not merely be marked by technology investment but by the tangible business value derived from procurement transformation. For organizations, this means shifting focus from short-term technological fixes to strategic, process-led AI integration that fosters long-term sustainability and growth.
Investors should look for companies actively pursuing these AI-related procurement strategies, as those embracing a comprehensive AI overhaul are poised to outperform peers. Allocation of resources towards developing superior supplier intelligence and autonomous transaction processing can be a game-changer for long-term profitability.
Finally, companies must stay ahead of the curve in adopting these AI World Class Procurement benchmarks, as businesses that fail to adapt risk being left behind in today’s rapidly evolving market landscape. Emphasizing AI-driven transformation will be key to unlocking higher returns on investment and sustained competitive advantage.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
New research quantifies gains in procurement ROI (up to 3.7X), savings impact (up to 3X) and strategic procurement capacity (up to 55%)
The Hackett Group, Inc. (NASDAQ: HCKT), an ROI-led AI transformation firm, today announced AI World Class Procurement benchmarks – new research that quantifies how artificial intelligence (AI) is reshaping procurement performance and reveals a growing gap between organizations redesigning source-to-pay around AI and those that simply automate existing procurement activities.
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Purchase-to-pay provides one of the clearest examples of how AI creates enterprise value within procurement. Improvements in supplier intelligence, sourcing effectiveness, purchasing efficiency and transaction processing reinforce one another. Better decisions upstream reduce work downstream, improving supplier performance and strengthening procurement ROI throughout the process. While many organizations focus on automating individual procurement activities, AI World Class reveals a larger opportunity: redesigning the end-to-end purchase-to-pay process around AI. AI World Class modeling shows purchase-to-pay process costs can decline by up to 80%, while staffing requirements per billion dollars of spend can decline by up to 81%. This creates the opportunity to shift procurement capacity toward supplier strategy, sourcing optimization and commercial decision-making.
These new benchmarks build on The Hackett Group’s AI World Class research introduced in May, which identified performance advantages of up to 75% for organizations pursuing process-led AI transformation. The new procurement benchmarks show how those advantages emerge across critical procurement processes and where organizations can create measurable improvements in procurement return on investment (ROI), savings generation, supplier performance, and business value.
The research indicates that the next phase of AI adoption will be defined less by technology deployment and more by the business value procurement creates. As organizations face continued pressure to improve margins and strengthen supply resilience, chief procurement officers are increasingly expected to accelerate savings, strengthen supplier performance, improve compliance and reduce enterprise risk with leaner teams.
“Most organizations are still trying to justify AI investments one use case at a time,” said Tim Yoo, principal and Procurement Transformation practice leader at The Hackett Group ® . “Our research shows the greatest returns come when organizations redesign procurement processes with AI as a key enabler, allowing better decisions to build value throughout the end-to-end process.”
The new benchmarks span critical procurement processes, including sourcing, supplier management, purchasing, purchase-to-pay and supplier performance. AI World Class Procurement benchmarks quantify where process-led AI transformation can create the greatest value and establish future-state performance standards across the procurement function.
Purchase-to-pay demonstrates how AI creates compounding value. Better supplier intelligence, sourcing decisions, and increasingly autonomous transaction processing reinforce one another throughout the procurement process to increase savings, supplier performance, compliance and ROI.
The performance impact is significant. AI World Class organizations generate up to 3.7X greater procurement ROI and 3X greater savings impact. AI World Class modeling also shows purchase-to-pay process costs can decline by up to 80%, while staffing requirements can decrease by up to 81%, creating capacity for supplier strategy, sourcing optimization and higher-value commercial decision-making.
Competitive bidding increases by 97% alongside 42% greater supplier concentration, improving sourcing outcomes before a purchase order is ever created. Guided buying and catalog adoption improved by 110%, reducing maverick spend leakage by 69%. As purchasing quality improves, invoice errors decline by 76%, invoice processing accelerates by 74% and transaction execution becomes increasingly autonomous.
The impact becomes even more visible as procurement organizations redirect capacity from administration to supplier strategy. Increasingly autonomous execution frees procurement professionals to spend more time strengthening supplier relationships, optimizing sourcing strategies and pursuing commercial opportunities with the greatest potential.
“Procurement creates the greatest value before an order is placed,” said Jeff Gilkerson, principal at The Hackett Group ® . “AI gives procurement teams the capacity to spend less time administering transactions and more time making better supplier and commercial decisions that strengthen enterprise performance.”
While purchase-to-pay provides a clear illustration of the opportunity, similar patterns emerge across the broader AI World Class benchmark portfolio. The benchmarks span 16 end-to-end enterprise processes and identify where process reinvention can unlock the greatest gains in cost, productivity, speed and business performance. The most significant value is created when organizations redesign how work flows across an entire process enabled by AI rather than focusing on isolated automation opportunities.
The AI World Class benchmarks are grounded in more than 30 years of benchmark data, process intelligence and transformation experience drawn from leading global organizations, including 98% of the Dow Jones Global Titans, 97% of the Dow Jones Industrials and 90% of the Fortune 100.
The AI World Class Procurement benchmarks are available exclusively through The Hackett Group ® . Download the AI World Class Procurement report to learn how process-led AI transformation is creating a growing procurement performance gap and where organizations can capture the greatest procurement value.
About The Hackett Group ®
The Hackett Group, Inc. (NASDAQ: HCKT) is an ROI-led, AI enterprise transformation firm that helps clients enable AI world-class performance. Its experts and engineers leverage proprietary AI delivery platforms – Hackett AI XPLR™ , ZBrain™ , XT™, AIXelerator™ and AskHackett™ – to accelerate and enhance the delivery of the company’s solutions and services.
The AI platforms are powered by the company’s domain-specific Hackett Solution Language Model informed by Hackett Process and Performance Intelligence – including Digital World Class ® benchmark metrics, best-practice process flows and service delivery model solution frameworks, which accelerate and enhance the delivery of its services. The Hackett Group’s proprietary insights are based on benchmarking results from leading global organizations, including 98% of Dow Jones Global Titans, 97% of the Dow Jones Industrials and 90% of the Fortune 100. Visit www.thehackettgroup.com
Trademarks
The Hackett Group ® , quadrant logo, and Digital World Class ® are the registered marks of The Hackett Group ® .
Cautionary Statement Regarding “Forward-Looking” Statements
This release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward-looking statements. Forward-looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that may impact such forward-looking statements include without limitation, the ability of The Hackett Group ® to effectively market its digital transformation services, our ability to transition our capabilities to support generative artificial intelligence (AI)-related consulting services and solutions and other consulting services, our ability to effectively integrate acquisitions into our operations, our ability to manage joint ventures and successfully cooperate with our joint venture partners, competition from other consulting and technology companies that may have or develop in the future, similar offerings, the commercial viability of The Hackett Group ® and its services as well as other risk detailed in The Hackett Group’s reports filed with the United States Securities and Exchange Commission. The Hackett Group ® does not undertake any duty to update this release or any forward-looking statements contained herein.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260713704676/en/
FAQ**
How does The Hackett Group Inc. (HCKT) plan to leverage its AI platforms to achieve the reported procurement ROI increases of up to 3.7X in enterprises adopting process-led AI transformation?
Can The Hackett Group Inc. (HCKT) provide examples of organizations that have successfully redesigned their procurement processes around AI, leading to the quantifiable savings impacts outlined in the benchmarks?
What strategies does The Hackett Group Inc. (HCKT) recommend for organizations to transition from automating procurement activities to redesigning the end-to-end purchase-to-pay process for enhanced value?
Given the competitive bidding increases and supplier concentration improvements reported, how is The Hackett Group Inc. (HCKT) measuring the impact of AI on supplier relationships and sourcing outcomes?
**MWN-AI FAQ is based on asking OpenAI questions about The Hackett Group Inc. (NASDAQ: HCKT).
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