The Emergence of Agentic AI—Redefining Autonomous Intelligence in Procurement

This chapter examines the revolutionary role of Agentic Artificial Intelligence (AAI) in procurement operations and management. Global supply networks’ rising volatility, complexity, and transparency demands are too much for traditional, rules-based procurement systems. AAI signifies a paradigm shift from reactive automation to proactive, strategic decision-making because of its capacity for autonomous, goal-oriented behavior. In contrast to traditional AI, AAI systems can learn, adapt, and act on their own initiative to accomplish management and operational objectives. This chapter describes how the global supply network’s volatility, customer and regulatory pressures, and data growth have all contributed to the transformation of procurement from a bureaucratic to a strategic function. By enabling sophisticated demand forecasting, real-time risk analysis, and automated, data-driven decisions that surpass human capabilities, artificial intelligence (AI) is uniquely positioned to meet these challenges. This chapter offers a thorough typology of AAI, grouping agents according to their architecture, autonomy, and learning methods (e.g., reactive, deliberative, and hybrid models). The chapter’s conclusion emphasizes the necessity of a comprehensive framework that integrates AAI with other digital solutions to produce a more robust, adaptable, and efficient procurement system. This is the objective of this book.