Demystifying AI adoption inpurchasing operations : Understanding application possibilities, benefits and risks

Sammanfattning

The increasing complexity of global supply chains and the growing volume of data present significant challenges for purchasing functions. Artificial Intelligence (AI) offers potential solutions; however, its practical application, benefits, and risks in specific industrial contexts require clarification. This master’s thesis, developed in collaboration with a company in the construction equipment industry, aims to clarify the potential role of AI in purchasing operations within this sector. It systematically explores potential AI applications, evaluates their benefits, identifies associated risks and implementation barriers, and proposes a method for assessing their viability. To ground these findings, a qualitative multi-method approach was employed, combining a systematic literature review, guided by the PRISMA guidelines, with semi-structured interviews involving purchasing function stakeholders in the target industry. The findings were synthesised to develop two key outputs: a mapping of application areas for potential AI use cases and an Application Viability Assessment (AVA) framework for structured evaluation of AI applications. The resulting application area grouping identified five primary areas for AI application: forecasting, supplier management, decision-making, supply chain risk management, and organisation. Key benefits of AI span a spectrum from enhanced operational efficiency in purchasing and improved capabilities to potentially transformative new functionalities. However, significant constraints and barriers were also highlighted, including the need for model explainability, variable technology maturity, concerns regarding data confidentiality, data quality and availability, and critical organisational factors such as change management and user trust. These factors were incorporated into the AVA framework to facilitate a systematic assessment of an application’s viability. The study concludes that although AI offers considerable potential to enhance purchasing in the construction equipment industry, successful implementation demands a strategic, context-aware approach. Balancing technological possibilities with organisational readiness and mitigating risks through structured evaluation, as facilitated by the AVA framework, is essential for realising the true value of AI in this domain.