Episode 47: How to prepare for AI
- Embedded IT
- Jul 14, 2025
- 2 min read
Updated: 6 hours ago
Understanding the shift toward AI in procurement
AI is rapidly becoming part of everyday business processes, and procurement teams are no exception. With new tools emerging across every industry, teams now need to understand how to prepare for AI in a practical and structured way. Let's explore the tangible steps procurement functions can take to get ready for an AI-driven landscape.
We also look at the governance and ethical challenges in the risks and ethics of AI, which are closely linked to preparation.
Setting clear AI policies
A key first step is developing clear, workable policies for how the organisation will approach AI. Procurement teams should collaborate closely with IT to agree what is acceptable and what is not.
Some organisations may decide they do not want to buy AI-enabled products at all. Others may be open to AI but want to limit its use to models trained on specific datasets, such as UK-only data. Whatever the stance, clarity matters. Having a defined AI policy helps set expectations with suppliers and ensures consistent internal decision-making.
Updating RFP rules for an AI world
Procurement teams should also consider how AI affects the sourcing cycle. For example, are suppliers allowed to feed requirements documents into tools like ChatGPT to generate their proposals? Some teams may be comfortable with this, while others may view it as exposing confidential information.
By defining rules for AI-generated responses, teams can ensure RFPs remain compliant, secure, and aligned with organisational expectations.
Working with legal teams on AI compliance
Legal teams will have strong views on emerging AI regulations and how they affect contracts. Procurement should work with legal colleagues to identify any red lines, mandatory clauses, or industry-specific requirements.
This might include compliance with legislation such as the EU AI Act or sector-specific rules, especially in regulated areas like finance or trading. Building AI clauses into standard contract templates helps create consistency and reduces risk when engaging suppliers using AI.
Understanding the AI supplier landscape
Almost every industry now has vendors offering AI-driven products and services. Procurement teams preparing for AI should actively explore what is available in their market.
Simple desk research – for example, searching for AI software or service providers within a particular sector – can surface ideas that may help internal stakeholders. Being proactive in identifying potential opportunities positions procurement as a strategic partner.
Building readiness and confidence
AI is here to stay, and readiness comes from engaging with it rather than avoiding it. By understanding how the business wants to approach AI, documenting the rules, and exploring what suppliers can offer, procurement teams can prepare themselves for the changes ahead.
The technology will evolve, but the fundamentals remain the same: clarity, consistency, and collaboration across IT, legal, suppliers, and stakeholders.
For organisations looking to strengthen their approach to AI readiness in procurement, get in touch.