Experts warn poor data visibility hindering AI adoption in procurement
Experts warn poor data visibility hindering AI adoption in procurement
Procurement experts have identified limited data visibility and obsolete procurement systems as key obstacles hindering the adoption of Artificial Intelligence across many African organisations, as Experts warn poor data systems slowing AI adoption.
The experts made the observation on Tuesday during the Digital Procurement Africa Summit held in Lagos and powered by Gloopro.
The summit was with the theme, ‘Accelerating Procurement Transformation for Large Enterprise in the Digital Era’, attracting procurement professionals, supply chain managers and business leaders.
Olumide Olusanya, Chief Executive Officer of Gloopro, said many African organisations still struggled with procurement digitisation in spite of growing global interest in artificial intelligence-driven procurement systems.
According to him, procurement transformation depends heavily on organisations building structured, accessible and reliable procurement data systems before deploying artificial intelligence solutions.
“AI depends on data. Organisations must first digitise procurement activities before artificial intelligence can deliver meaningful value within procurement operations,” Olusanya said.
He explained that many procurement activities still occur outside digital platforms, making artificial intelligence deployment difficult, ineffective and potentially risky for governance systems.
Olusanya noted that fragmented procurement records and poor data accessibility often prevented organisations from fully benefiting from automation, predictive analytics and compliance monitoring systems.
He said organisations across Africa must prioritise procurement digitisation to strengthen transparency, operational efficiency and accountability within procurement and supplier management processes.
Speaking on procurement-as-a-service, Olusanya described the model as a digital outsourcing approach enabling organisations to manage procurement operations through external technology-driven platforms.
According to him, procurement-as-a-service helps organisations reduce operational costs while improving procurement turnaround time, supplier coordination and transaction visibility across departments.
Olusanya stated that digital procurement systems were reducing procurement turnaround time by approximately 67 per cent in organisations already embracing technology-driven procurement operations.
He added that digital systems also strengthen compliance oversight by improving monitoring mechanisms, approval processes and transparency across procurement transactions and supplier engagements.
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Addressing tail spend, Olusanya described it as low-value procurement transactions that frequently escape central procurement governance and monitoring systems within organisations.
He warned that unmanaged tail spend collectively accounts for substantial organisational expenditure despite individual transactions appearing relatively insignificant or routine.
According to him, poor oversight of tail spend often creates financial leakages, governance weaknesses and compliance risks capable of undermining broader organisational accountability systems.
Also speaking, Adenrele Thompson, Indirect Procurement Manager, Supplier Chain, at Coca-Cola Company, said digital procurement systems were becoming increasingly essential for sustainable business operations.
Thompson warned that organisations resisting procurement digitisation would eventually face operational difficulties and governance challenges within increasingly technology-driven business environments.
“If you are not digital, it is only a matter of time. The consequences are inevitable,” Thompson said.
He explained that repeated bypassing of approved procurement systems gradually weakens compliance culture and creates governance gaps across organisations.
According to Thompson, tail spend often involves frequent low-value transactions receiving minimal scrutiny because each individual purchase appears financially insignificant.
He warned that such practices could gradually normalise weak procurement behaviour and undermine institutional accountability, transparency and operational discipline.
Also speaking, Chukwuma Nkwodinmah, Supply Chain Leader at Aradel Holdings, warned that unmanaged procurement transactions expose organisations to financial, regulatory and reputational risks.
Nkwodinmah explained that repeated emergency purchases outside approved procurement systems often create parallel procurement structures lacking transparency and effective accountability mechanisms.
According to him, weak oversight within unmanaged procurement systems could increase exposure to fraud risks, compliance breaches and operational inefficiencies across organisations.
“Once executives begin to see procurement leakage as governance failure rather than operational inefficiency, organisations will pay greater attention to controlling unmanaged spending,” he said.
Nkwodinmah urged organisations to strengthen procurement governance structures and improve digital visibility across procurement operations to reduce long-term compliance and operational risks.
