In this episode of The Procurement Software Podcast, host James Meads delves into a provocative topic inspired by a LinkedIn post from industry commentator Jon W. Hansen.

The post claims that 83% of AI initiatives fail and predicts that 75% of AI solution providers will be out of business by the end of 2025.

So, is this likely? Tune in as he breaks down these bold claims and offers insights into the future of procurement technology.

How many procuretechs will still be here in 2 years?

This week, James tackles the pressing question of whether 75% of AI solution providers will truly vanish by 2025, a claim recently made by industry commentator Jon W. Hansen.

While some market consolidation is inevitable, James argues that this figure is exaggerated. Many procurement tech companies are thriving by delivering measurable results and adapting to shifting market demands.

The discussion highlights how innovative tools are emerging to fill gaps in the market left by underperforming legacy providers. For SMEs and mid-market organisations, this shift is particularly exciting. New solutions tailored to these segments are making procurement tech more accessible and effective, addressing unique challenges often overlooked by traditional players.

Sustainability tools also take centre stage, as regulatory pressures drive demand for solutions that help organisations achieve compliance. Additionally, niche-specific platforms are gaining traction, offering tailored capabilities for industries like oil and gas, financial services, and emerging markets.

James emphasises that procurement professionals must remain open to innovation, prioritising results over software brand recognition and flagship case studies. By exploring new entrants alongside established players, organisations can uncover solutions that align with their strategic goals and set them up for long-term success.

Timestamps:

[00:02:21 ] Procurement tech sustainability concerns.

[00:06:31 ] AI solutions for SMEs.

[00:08:11 ] Emerging markets in procurement tech.

[00:12:38 ] Legacy player risks in procurement.

And that wraps up another episode of The Procurement Software Podcast!

Thanks again for listening, and do please leave us a review on Apple Podcasts or rate us on Spotify. Every one helps!

We'll be back at the same time next week, so see you there.

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