AI route to smarter procurement, finance

SAM ACHAMPONG, Regional Director, Chartered Institute of Procurement & Supply (CIPS), and KUSH AHUJA, Head of Eurasia and the Middle East, Association of Chartered Certified Accountants (ACCA), explore how AI is transforming procurement and finance in the construction sector.

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THE GCC’s ambitious $2 trillion infrastructure and construction project pipeline by 2030 underscores the critical need for efficiency, cost control, and resilience. From Saudi Arabia's mega-projects to the UAE's AI-driven smart developments, the sheer scale and complexity of these projects demand cutting-edge solutions. Artificial intelligence (AI) is rapidly transforming procurement and financial management in the construction sector, streamlining material sourcing, optimising supplier selection, mitigating supply chain risks, and enhancing financial forecasting.

McKinsey & Company reports that AI-driven procurement solutions have enabled companies to slash operational costs by up to 20 per cent and reduce procurement cycle times by nearly 50 per cent. Furthermore, research published in the European Journal of Accounting, Auditing and Finance Research indicates that businesses leveraging AI-powered predictive analytics have seen up to a 30 per cent improvement in budget accuracy.

The construction industry's traditional reliance on manual procurement has left it vulnerable to inefficiencies and supply chain disruptions. AI-powered tools are now reshaping procurement by automating routine tasks, analysing vast datasets to identify optimal suppliers, and predicting potential risks, enabling companies to make data-driven decisions that reduce costs and enhance resilience.

Embracing AI in procurement enables organisations to proactively manage risks, ensure compliance, and achieve significant cost savings. By leveraging AI, procurement professionals can focus on strategic initiatives rather than being bogged down by administrative tasks.