Overcoming Internal Barriers to AI: Skills, data, and Change Management in Procurement

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Amit Shah

Published On: 05/07/2025

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Artificial Intelligence (AI) has evolved from a futuristic buzzword into a present-day force in procurement. Its promise of enhanced decision-making, faster cycles, and strategic agility is clear. Yet, the reality on the ground? Most procurement organizations are still stuck at the start line—facing significant AI barriers in procurement that hinder full-scale adoption and transformation.

According to the Ardent Partners’ CPO Rising 2025 report, only 8% of enterprises have fully embedded AI into their Source-to-Pay (S2P) platforms—even though 73% of CPOs believe AI will have a significant or transformational impact in the next 2–3 years​.

So, what’s holding the rest back?

The answer lies not in the tech itself, but in internal barriers—skills, data, and change management.

Why AI Adoption in Procurement Is Lagging

Despite widespread enthusiasm, the Ardent report reveals that adoption is stalled for most procurement teams:

  • AI use is limited to narrow functions like RFP creation or supplier analysis
  • Enterprise-wide AI integration remains rare
  • Best-in-Class organizations are far more likely to embed AI than the rest​

The report attributes this gap to a mix of technical, organizational, and human limitations, the very barriers we address below.

Download the Hackett’s report on 2025 Purchase-to-Pay (P2P) Trends & Insights: Key Challenges, Automation, and AI-Driven Strategies

Barrier 1: The Procurement AI Skills Gap

AI technologies are powerful—but they’re also complex. Ardent Partners notes that many procurement organizations lack in-house capabilities to deploy and scale AI solutions. CPOs cite AI readiness as one of the top internal challenges in transforming the procurement function.

How to Overcome It:

1. Upskill Your Team
  • Offer focused training on AI fundamentals, data literacy, and emerging use cases in procurement.
  • Encourage certification through programs aligned with your AI platform.
2. Choose Human-Centric Tools
  • Select platforms with intuitive user interfaces, natural language processing, and embedded guidance.

How Zycus Helps:

The Merlin Agentic AI Platform provides ready-to-use AI agents that automate tasks like intake management, bid scoring, and contract redlining—without needing a data science background.

Pair with: Merlin Intake Management

Explore Hacket’s report on AI Agents in Procurement: The Next Wave of Digital Transformation

Barrier 2: Poor Data Quality and Siloed Information

AI needs clean, structured, and contextualized data to function properly. Yet, Ardent Partners notes that even top procurement teams often struggle with disparate systems, inconsistent taxonomies, and legacy data sources. These issues delay AI value realization and block automation.

How to Overcome It:

1. Centralize Procurement Data
  • Integrate contract, supplier, and spend systems into a unified Source-to-Pay platform.
2. Automate Data Cleansing
  • Use AI to continuously enrich, classify, and validate procurement data.

How Zycus Helps:

Zycus Spend Analysis uses AI to classify and cleanse 100% of enterprise spend across categories, business units, and geographies—building a high-fidelity foundation for AI applications.

Add-on: Zycus Contract Management for clause-level metadata and risk scoring.

Barrier 3: Organizational Resistance and Change Fatigue

Even with great tools and data, change management remains a major barrier. The CPO Rising 2025 report emphasizes that many teams face internal resistance, particularly from:

  • Stakeholders uncomfortable with new tech
  • Procurement staff fearing job loss or workflow disruptions
  • Executives wary of ROI uncertainty

How to Overcome It:

1. Socialize the Value of AI
  • Focus communication on how AI enhances—not replaces—human intelligence.
  • Use pilot wins to build trust and momentum.
2. Enable Cross-Functional Champions
  • Involve key business users early to co-design AI workflows.
3. Use Proven Frameworks
  • Follow established methodologies for process redesign, governance, and user onboarding.

How Zycus Helps:

Zycus offers structured implementation services and change management support, backed by playbooks, templates, and in-platform tutorials. Merlin’s conversational interfaces also reduce training time and drive rapid adoption.

Read more: Driving P2P Adoption Through Change Management

 What Best-in-Class Procurement Teams Do Differently

The CPO Rising 2025 report makes one thing crystal clear: Best-in-Class procurement organizations are ahead because they solve for these barriers early. Compared to others, they:

They treat AI not as a side project— but as a strategic capability.

See how: Zycus Source-to-Pay Suite

Thus, AI is not the future of procurement. It’s the present—and the next competitive frontier.

If your team is still navigating internal barriers around skills, data, or change management, you’re not alone. But the path forward is clear:

  • Upskill your workforce
  • Clean and integrate your data
  • Embed AI in ways that amplify—not replace—human decision-making

With the right tools and strategy, AI can become the engine that powers strategic sourcing, proactive risk mitigation, and next-gen procurement maturity.

Ready to benchmark your readiness or build your AI roadmap?

Start with the Ardent Partners’ research, sponsored by Zycus: Download the CPO Rising 2025 Report

Related Reads:

  1. Impact of Artificial Intelligence in Procurement
  2. The Future of Negotiations with AI and Machine Learning
  3. How AI Is Reshaping Procurement: From Automation to Agentic Intelligence
  4. Navigating Tariffs and Trade Volatility: What Procurement Leaders Must Know
  5. Procurement’s AI Adoption Curve: Why Most Are Still in the Early Stages
  6. CPO Priorities for 2025: Balancing Cost, Risk, and Digital Transformation
  7. Benchmarking Procurement Performance: Where Do You Stand in 2025?
  8. The Best-in-Class Procurement Playbook: What the Top 20% Do Differently

Watch the AI Agents Work – Live Demo of Merlin Agentic Platform in Action

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Amit Shah
Amit is a seasoned business leader who brings to Zycus about 18 years of experience in strategic marketing and communications, business management, and strategy. As CMO and Head Global BD, he is responsible for all aspects of global marketing and demand generation. He also leads other strategic functions like sales ops, bid desk and sales enablement. Before joining Zycus, Amit was based in London and served as Managing Director at OakNorth, a B2B SAAS unicorn and supported large enterprise engagements across the US, Europe, and Australasia. Amit holds an MBA from IIM Mumbai and B.E from REC Surathkal (NIT Karnataka). He has also completed an executive program in strategic marketing from Stanford Graduate School of Business. He was recognized as 40under40 by Reputation Today in 2017, has been a Power Profile on LinkedIn in 2018 & 2016, and has served on the advisory board of S.P.Jain Institute of Management & Research and Fintech committee of FICCI.

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