2024 Deloitte Global CPO Flash Survey on Generative AI

Please see here below a common definition of Generative AI for consideration as you complete the survey:

“Artificial intelligence that creates original content across various modalities (e.g., text, images, audio, code, voice, video) that would have taken human skill and expertise to create. It can automate processes and workflows, improve efficiency and productivity, enable scalability and speed, optimize outcomes, reduce costs, and enhance risk management and security.”

1. How would you rate your procurement organization's understanding of Generative AI and its potential applications in the sourcing and procurement function?

Select one

2. Given what you know about Generative AI, what types of value do you believe Generative AI best unlocks for sourcing and procurement? (Rank top 3)

Rank top 3

Topics	1	2	3
Cost Optimization	Cost Optimization, 1	Cost Optimization, 2	Cost Optimization, 3
Enable Better Management of Spend	Enable Better Management of Spend, 1	Enable Better Management of Spend, 2	Enable Better Management of Spend, 3
Enhance Analytics and Decision Making	Enhance Analytics and Decision Making, 1	Enhance Analytics and Decision Making, 2	Enhance Analytics and Decision Making, 3
Enhance Compliance Management	Enhance Compliance Management, 1	Enhance Compliance Management, 2	Enhance Compliance Management, 3
Improve Knowledge Management	Improve Knowledge Management, 1	Improve Knowledge Management, 2	Improve Knowledge Management, 3
Improve Quality of Outcomes	Improve Quality of Outcomes, 1	Improve Quality of Outcomes, 2	Improve Quality of Outcomes, 3
Improve Risk Management	Improve Risk Management, 1	Improve Risk Management, 2	Improve Risk Management, 3
Increase Process Consistency	Increase Process Consistency, 1	Increase Process Consistency, 2	Increase Process Consistency, 3
Productivity Gains	Productivity Gains, 1	Productivity Gains, 2	Productivity Gains, 3
Quality Improvement	Quality Improvement, 1	Quality Improvement, 2	Quality Improvement, 3
Other (please specify)	Other (please specify), 1	Other (please specify), 2	Other (please specify), 3

Please specify other:

3. What extent are you planning to explore Generative AI in the following Sourcing and Procurement areas in the next 12 months? Please select your level of exploration in each area using the scale below:
Note: S2C = Source-to-Contract, SRM = Supplier Relationship Management, and P2P = Procure-to-Pay

Topics	Not Planning to Explore	Planning (but Not Started Yet)	Piloting	Fully Deployed
S2C – Category Management	S2C – Category Management, Not Planning to Explore	S2C – Category Management, Planning (but Not Started Yet)	S2C – Category Management, Piloting	S2C – Category Management, Fully Deployed
S2C – Sourcing Execution	S2C – Sourcing Execution, Not Planning to Explore	S2C – Sourcing Execution, Planning (but Not Started Yet)	S2C – Sourcing Execution, Piloting	S2C – Sourcing Execution, Fully Deployed
S2C – Contracting	S2C – Contracting, Not Planning to Explore	S2C – Contracting, Planning (but Not Started Yet)	S2C – Contracting, Piloting	S2C – Contracting, Fully Deployed
SRM – Risk & Compliance Management	SRM – Risk & Compliance Management, Not Planning to Explore	SRM – Risk & Compliance Management, Planning (but Not Started Yet)	SRM – Risk & Compliance Management, Piloting	SRM – Risk & Compliance Management, Fully Deployed
SRM – Supplier Management	SRM – Supplier Management, Not Planning to Explore	SRM – Supplier Management, Planning (but Not Started Yet)	SRM – Supplier Management, Piloting	SRM – Supplier Management, Fully Deployed
P2P – Intake Management / Guided Buying	P2P – Intake Management / Guided Buying, Not Planning to Explore	P2P – Intake Management / Guided Buying, Planning (but Not Started Yet)	P2P – Intake Management / Guided Buying, Piloting	P2P – Intake Management / Guided Buying, Fully Deployed
P2P – Purchasing	P2P – Purchasing, Not Planning to Explore	P2P – Purchasing, Planning (but Not Started Yet)	P2P – Purchasing, Piloting	P2P – Purchasing, Fully Deployed
P2P – Invoice & Payment Processing	P2P – Invoice & Payment Processing, Not Planning to Explore	P2P – Invoice & Payment Processing, Planning (but Not Started Yet)	P2P – Invoice & Payment Processing, Piloting	P2P – Invoice & Payment Processing, Fully Deployed
Enabling Function – Application / Platform Management	Enabling Function – Application / Platform Management, Not Planning to Explore	Enabling Function – Application / Platform Management, Planning (but Not Started Yet)	Enabling Function – Application / Platform Management, Piloting	Enabling Function – Application / Platform Management, Fully Deployed
Enabling Function – Data & Analytics	Enabling Function – Data & Analytics, Not Planning to Explore	Enabling Function – Data & Analytics, Planning (but Not Started Yet)	Enabling Function – Data & Analytics, Piloting	Enabling Function – Data & Analytics, Fully Deployed
Enabling Function – Knowledge Management	Enabling Function – Knowledge Management, Not Planning to Explore	Enabling Function – Knowledge Management, Planning (but Not Started Yet)	Enabling Function – Knowledge Management, Piloting	Enabling Function – Knowledge Management, Fully Deployed
Enabling Function – Master Data Management	Enabling Function – Master Data Management, Not Planning to Explore	Enabling Function – Master Data Management, Planning (but Not Started Yet)	Enabling Function – Master Data Management, Piloting	Enabling Function – Master Data Management, Fully Deployed
Enabling Function – Self Service Chatbot	Enabling Function – Self Service Chatbot, Not Planning to Explore	Enabling Function – Self Service Chatbot, Planning (but Not Started Yet)	Enabling Function – Self Service Chatbot, Piloting	Enabling Function – Self Service Chatbot, Fully Deployed
Other (If not listed above)	Other (If not listed above), Not Planning to Explore	Other (If not listed above), Planning (but Not Started Yet)	Other (If not listed above), Piloting	Other (If not listed above), Fully Deployed

Please specify other:

4. Where you have already piloted or deployed Generative AI (i.e., which of the following use cases have you specifically focused on)?

Select all that apply

5. Where you have piloted or deployed Generative AI in Procurement, what level of value are you seeing delivered?
Note: ROI = Return of Investment

Select one

6. How much budget have you already invested / are you planning to invest on Generative AI capabilities for sourcing and procurement activities?
Note: If your organization is in the government sector, please feel free to answer "Not Sharing" to skip this question

Calendar Year	$0	$1-$100k	$100k-500k	$500k-$1M	$1M-$3M	$3M+	Not Sharing
2023	2023, $0	2023, $1-$100k	2023, $100k-500k	2023, $500k-$1M	2023, $1M-$3M	2023, $3M+	2023, Not Sharing
2024	2024, $0	2024, $1-$100k	2024, $100k-500k	2024, $500k-$1M	2024, $1M-$3M	2024, $3M+	2024, Not Sharing
2025	2025, $0	2025, $1-$100k	2025, $100k-500k	2025, $500k-$1M	2025, $1M-$3M	2025, $3M+	2025, Not Sharing

7. What are the top three internal risks/barriers associated with implementing Generative AI in sourcing and procurement processes from an industry-wide perspective? (Rank top 3)

Rank top 3

Topics	1	2	3
Compatibility with Existing Technology	Compatibility with Existing Technology, 1	Compatibility with Existing Technology, 2	Compatibility with Existing Technology, 3
Corporate Cultural Barriers	Corporate Cultural Barriers, 1	Corporate Cultural Barriers, 2	Corporate Cultural Barriers, 3
Data Quality	Data Quality, 1	Data Quality, 2	Data Quality, 3
Existing Sourcing and Procurement Talent Knowledge / Skill Set	Existing Sourcing and Procurement Talent Knowledge / Skill Set, 1	Existing Sourcing and Procurement Talent Knowledge / Skill Set, 2	Existing Sourcing and Procurement Talent Knowledge / Skill Set, 3
Implementation Lead-Time	Implementation Lead-Time, 1	Implementation Lead-Time, 2	Implementation Lead-Time, 3
Internal IT and AI Capabilities	Internal IT and AI Capabilities, 1	Internal IT and AI Capabilities, 2	Internal IT and AI Capabilities, 3
Problem Statement Identification and Definition	Problem Statement Identification and Definition, 1	Problem Statement Identification and Definition, 2	Problem Statement Identification and Definition, 3
ROI Calculations / Achievement	ROI Calculations / Achievement, 1	ROI Calculations / Achievement, 2	ROI Calculations / Achievement, 3
User Adoption and Change Management Efforts	User Adoption and Change Management Efforts, 1	User Adoption and Change Management Efforts, 2	User Adoption and Change Management Efforts, 3
Value Demonstration for Internal Customers	Value Demonstration for Internal Customers, 1	Value Demonstration for Internal Customers, 2	Value Demonstration for Internal Customers, 3
Other (please specify)	Other (please specify), 1	Other (please specify), 2	Other (please specify), 3

Please specify other:

8. What are the top three external risks/barriers associated with implementing Generative AI in sourcing and procurement processes from an industry-wide perspective? (Rank top 3)

Rank top 3

Topics	1	2	3
Data Privacy and Security	Data Privacy and Security, 1	Data Privacy and Security, 2	Data Privacy and Security, 3
Interoperability and Integration Challenges Across the Industry	Interoperability and Integration Challenges Across the Industry, 1	Interoperability and Integration Challenges Across the Industry, 2	Interoperability and Integration Challenges Across the Industry, 3
Limited Availability of Generative AI Skills/Talent in the Industry	Limited Availability of Generative AI Skills/Talent in the Industry, 1	Limited Availability of Generative AI Skills/Talent in the Industry, 2	Limited Availability of Generative AI Skills/Talent in the Industry, 3
Loss of IP	Loss of IP, 1	Loss of IP, 2	Loss of IP, 3
Overreliance on Generative AI Technologies Across the Industry	Overreliance on Generative AI Technologies Across the Industry, 1	Overreliance on Generative AI Technologies Across the Industry, 2	Overreliance on Generative AI Technologies Across the Industry, 3
Potential Risk Associated to Autonomous Decision-Making Practices	Potential Risk Associated to Autonomous Decision-Making Practices, 1	Potential Risk Associated to Autonomous Decision-Making Practices, 2	Potential Risk Associated to Autonomous Decision-Making Practices, 3
Regulatory Compliance Issues (Industry Related)	Regulatory Compliance Issues (Industry Related), 1	Regulatory Compliance Issues (Industry Related), 2	Regulatory Compliance Issues (Industry Related), 3
Regulatory Compliance Issues (Region Related)	Regulatory Compliance Issues (Region Related), 1	Regulatory Compliance Issues (Region Related), 2	Regulatory Compliance Issues (Region Related), 3
Solution Provider Capabilities / Maturity	Solution Provider Capabilities / Maturity, 1	Solution Provider Capabilities / Maturity, 2	Solution Provider Capabilities / Maturity, 3
Supplier Willingness to Engage with Generative AI	Supplier Willingness to Engage with Generative AI, 1	Supplier Willingness to Engage with Generative AI, 2	Supplier Willingness to Engage with Generative AI, 3
Other (please specify)	Other (please specify), 1	Other (please specify), 2	Other (please specify), 3

Please specify other:

9. What are the top 3 gaps that you see within your team for deploying Generative AI? (Rank top 3)

Rank top 3

Topics	1	2	3
Conflicting Priorities	Conflicting Priorities, 1	Conflicting Priorities, 2	Conflicting Priorities, 3
Functional Support (e.g., IT, Finance, HR)	Functional Support (e.g., IT, Finance, HR), 1	Functional Support (e.g., IT, Finance, HR), 2	Functional Support (e.g., IT, Finance, HR), 3
Inadequate Technologies	Inadequate Technologies, 1	Inadequate Technologies, 2	Inadequate Technologies, 3
Insufficient C-Suite Support	Insufficient C-Suite Support, 1	Insufficient C-Suite Support, 2	Insufficient C-Suite Support, 3
Insufficient Business-Wide Support / Organizational Support	Insufficient Business-Wide Support / Organizational Support, 1	Insufficient Business-Wide Support / Organizational Support, 2	Insufficient Business-Wide Support / Organizational Support, 3
Lack of Funding	Lack of Funding, 1	Lack of Funding, 2	Lack of Funding, 3
Lack of Knowledge / Capability	Lack of Knowledge / Capability, 1	Lack of Knowledge / Capability, 2	Lack of Knowledge / Capability, 3
Limited Talent Capacity	Limited Talent Capacity, 1	Limited Talent Capacity, 2	Limited Talent Capacity, 3
Limited Use of 3rd Party Outsourcing / Managed Services	Limited Use of 3rd Party Outsourcing / Managed Services, 1	Limited Use of 3rd Party Outsourcing / Managed Services, 2	Limited Use of 3rd Party Outsourcing / Managed Services, 3
Talent Gap (Skillset)	Talent Gap (Skillset), 1	Talent Gap (Skillset), 2	Talent Gap (Skillset), 3
Other (please specify)	Other (please specify), 1	Other (please specify), 2	Other (please specify), 3

Please specify other:

10. In terms of talent, what characteristics do you believe most crucial for employees/teams to be most successful when enabling Generative AI in Sourcing and Procurement? (Rank top 3)

Rank top 3

Topics	1	2	3
Adaptability	Adaptability, 1	Adaptability, 2	Adaptability, 3
Creativity	Creativity, 1	Creativity, 2	Creativity, 3
Curiosity	Curiosity, 1	Curiosity, 2	Curiosity, 3
Category Expertise	Category Expertise, 1	Category Expertise, 2	Category Expertise, 3
Communication Skills	Communication Skills, 1	Communication Skills, 2	Communication Skills, 3
Process Knowledge	Process Knowledge, 1	Process Knowledge, 2	Process Knowledge, 3
Procurement Knowledge	Procurement Knowledge, 1	Procurement Knowledge, 2	Procurement Knowledge, 3
Technology Proficiency	Technology Proficiency, 1	Technology Proficiency, 2	Technology Proficiency, 3
Other (please specify)	Other (please specify), 1	Other (please specify), 2	Other (please specify), 3

Please specify other:

11. Which of the following best describes how you are planning to assess the Generative AI capabilities for sourcing and procurement in 2024?

No plans
Exploring options
Collaborating with existing procurement solution providers
Purchasing new best-of-breed third-party Generative AI solutions
Developing Generative AI capabilities in-house with private Large Language Models (LLMs)
Developing Generative AI capabilities in-house with external Large Language Models (LLMs)
Combination of several above options
Other (please specify)

12. What excites you most about the use of Generative AI in sourcing and procurement?

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