A talent gap describes the divergence between the skills set required by an employer and those offered by the talent market. As such, it describes both the gap between expected skills and those available, but also the roles that remain unfilled within an industry or organisation. Although it is a common problem across industries, it’s recently been my direct experience that this challenge is pronounced in procurement, where the rapid evolution of technology is paired with increasingly stringent sustainability and supply chain regulations.
As a business, we are seeing organizations struggling to keep their teams up to speed because supply chain management now requires them to address increasingly complex goals such as environmental, social, and governance (ESG) standards, resilience, and compliance—all amidst a volatile global economy. Procurement has in fact undergone a significant transformation to encompass far more than its traditional objectives like cost efficiency and timely delivery, taking on a lead role in driving corporate sustainability. Procurement professionals tell us they are struggling with the expectation that they possess skills that blend traditional supply chain expertise with knowledge of carbon emission reduction measures, ESG standards, biodiversity, risk management, supply chain resilience and regulatory compliance. The reality is that ensuring staff keep up with such evolving demands is difficult for many organizations.
This is where artificial intelligence (AI) comes in, proving to be a real game changer. As procurement and supply chain processes become more intricate, AI offers a powerful solution to bridge the talent gap by automating routine and time-consuming tasks, freeing up human resources to focus on more strategic, high-value activities. By integrating AI into procurement, businesses can accelerate decision-making, improve accuracy, and allow their workforce to focus on innovation and long-term goals.
Of the numerous evolving challenges that procurement teams need to face today, many revolve around sustainability and traceability. As the global demand for transparency increases, regulations surrounding environmental and social responsibility continue to tighten. ESG standards need to be upheld throughout the supply chain with more and more scrutiny being placed on Scope 3 emissions. Companies must therefore be able to trace emissions up and down the supply chain in order to ensure compliance. With mounting regulatory concern and consumer demand for eco-friendly and ethical products, organizations that fail to adopt sustainable practices themselves and promote them in their ecosystem, risk losing business and damaging their reputations.
AI’s ability to provide real-time insights and automate processes that favour transparency gives companies a significant edge in this arena, allowing them to stay compliant and accountable. AI tools can in fact automate data collection and analysis, track supplier performance, and ensure that all procurement activities align with specific goals. By processing large volumes of data in real time, AI can quickly identify areas where improvements are needed and help ensure improvement targets are met efficiently.
One of the most significant advantages of AI is its ability to continuously learn and adapt to new information. As AI systems ingest and process vast amounts of data, they become better at identifying patterns, anticipating needs, and optimizing processes. This makes AI particularly well-suited for procurement, where market conditions and regulatory requirements are shifting. Rather than requiring procurement professionals to manually keep track of all these changes, AI can help automate compliance and risk management, allowing teams to stay ahead of the curve.
As companies navigate an increasingly complex procurement environment, AI should not be seen as a technology for the distant future, but rather an immediate necessity. By automating mundane tasks and offering tailored, intelligent recommendations, AI enables organizations to upskill their workforce at a pace that matches market demands.
In addition to this, contrary to popular concerns that AI will lead to job losses, this technology has the potential to help bridge the talent gap in all industries, enabling tools that provide on-the-job and in-task training.
Natural language processing (NLP) applications, for example, can assist users in navigating new processes and functionalities, providing immediate answers to queries offering tailored guidance and actionable insights. By reducing the need for lengthy and complicated training sessions, AI allows professionals to learn and familiarise with new tools as they work, getting guidance when they need it via prompts or even short videos.
This technology can support a range of procurement users, from officers handling day-to-day operations to executives making strategic decisions. For example, generative AI can provide recommendations on supplier selection, help optimize procurement strategies and suggest contractual adjustments in response to emerging regulations.
By using generative AI, companies can ensure that their teams, regardless of experience, can navigate the complex procurement landscape with confidence. This empowers employees to handle new challenges while improving decision-making accuracy and efficiency.
However, mere implementation of AI is not enough to effectively bridge the talent gap: companies need to ground this technology in a strategic and multifaceted approach that prioritises talent development and retention. Investing in robust and comprehensive training programmes, creating a learning culture within the company and appointing internal AI leadership are critical aspect for companies wanting not only to address the current shortage of skilled professionals but also to position themselves as leaders in an AI-driven future.
Additionally, AI can be leveraged to make the recruitment process more efficient and targeted, helping identifying candidates with the right mix of skills and potential, assessing factors such as qualifications, experience, and even cultural fit and ultimately streamlining the hiring process, reducing the time it takes to fill open positions and ensuring the best candidates are selected.
As AI continues to revolutionise procurement, the demand for skilled professionals will only grow, widening the talent gap. Companies proactively addressing this issue and embracing AI innovations will be better positioned to leverage these technologies, build resilience, ensure compliance, and achieve sustainability goals—all while improving operational efficiency. Moreover, by allowing procurement teams to focus on strategic activities rather than repetitive admin tasks, AI provides talent with an opportunity to upskill and take on new, formative challenges. In conclusion, I’ve come the believe that AI is quite the opposite of a threat to the workforce, instead it fosters a culture of resource development and innovation, promoting job satisfaction and positioning companies competitively. For businesses looking to thrive in this new era, adopting AI is not just an option—it’s an imperative.