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Procurement in higher education has always been a complex balancing act, requiring procurement and financial teams to navigate budget constraints alongside the evolving demands from academic and administrative departments. The result is often a process that feels complex and cumbersome.
The pressure to streamline procurement and lower costs has increased. Artificial intelligence (AI) and data analytics are increasingly being deployed to improve efficiency.
At the same time, demand for AI tools is increasing across campus. One recent study reported that 72% of faculty members are already using Generative AI for instructional purposes.
Many schools are looking to integrate AI into their curriculum, either as a stand-alone program or as part of their overall education program; 64% of policymakers in a 2024 EDUCASE study said AI adoption is crucial to preparing students to enter the workforce.
AI is helping procurement teams be more strategic about purchasing and streamlining processes, enabling even a small staff to do big things.
AI-driven automation is helping universities streamline procurement workflows. By automating processes like purchase order creation, invoice processing, and vendor approval, teams can reduce manual labor.
For example, one Texas university was able to use AI to consolidate data for a report that previously took 10–12 hours to produce. AI reduced the time to less than 30 seconds!
One of the most powerful ways AI impacts procurement is through predictive analytics. By analyzing historical purchasing data and combining it with real-time information, AI can predict future procurement needs, helping you make smarter purchasing decisions.
AI can identify trends in supply usage and seasonal demand fluctuations, helping you optimize ordering schedules and avoid over-purchasing. Predictive analytics also support universities in identifying cost-saving opportunities and aligning procurement activities with institutional goals.
Predictive analytics has also become an important tool in managing sustainability objectives. With the increasing emphasis on eco-friendly solutions, AI can analyze potential solutions to forecast tangible results and help monitor performance data.
AI can help you track vendor performance, ensure compliance with contractual obligations, and improve transparency throughout the supply chain. By recognizing anomalies, AI can flag potential issues such as delivery delays or quality inconsistencies before they become major problems.
Risk management is a critical part of procurement, particularly in higher education. AI can significantly enhance risk management by analyzing data to identify potential risks such as supply chain disruptions, non-compliance with procurement policies, and fraud.
Beyond using AI tools in procurement, colleges and universities are also deploying AI solutions at scale campuswide. As AI becomes more pervasive across campus, procurement teams must be equipped to source and implement AI tools not just for their department but institution-wide.
To successfully integrate AI, universities must develop a clear and strategic plan. This starts with defining the institution’s needs, identifying areas where AI can deliver the greatest value, and building a comprehensive roadmap for implementation.
Collaboration across academic departments, IT teams, and finance offices is essential to ensure that the AI solutions align with both procurement goals and the university’s broader objectives.
Implementing AI solutions brings concerns about data privacy and security, especially in higher education, where institutions must comply with strict regulations.
Procurement teams need to ensure that the AI tools they source adhere to data governance protocols and protect sensitive data. This requires rigorous vendor evaluations, thorough contract negotiations, and ongoing monitoring of AI systems to maintain compliance with data protection standards like FERPA.
After AI tools have been implemented, procurement teams must continue to monitor performance. Using data analytics, teams can measure the effectiveness of the AI solutions, identify areas for improvement, and make necessary adjustments to optimize procurement operations.
Regular feedback from end-users and ongoing supplier evaluations are also critical to ensure the AI system evolves with your needs and the rapidly changing technological landscape.
Cooperative purchasing organizations are a valuable resource for universities looking to source AI solutions, offering pre-negotiated contracts that allow you to pool your purchasing power with that of other institutions. This produces significant volume discounts that schools likely could not achieve on their own.
Cooperative contracts provide universities access to pre-vetted vendors, reducing the time and effort needed for supplier evaluations and contract negotiations.
Many institutions already work with cooperative purchasing organizations to adopt AI technologies successfully. By collaborating, procurement teams can ensure that AI solutions align with institutional goals and budgets while minimizing the complexity of procurement.
E&I Cooperative Services can help you source AI tools and services across a broad range of functions. As the only member-owned, non-profit purchasing organization that focuses solely on the education sector, E&I Cooperative Services provides access to contracts with AI suppliers tailored to higher education.
Leverage the aggregated purchasing power of 6,000 educational institution members of E&I Cooperative Services. See how our technology procurement experts can help you find affordable solutions for your AI needs.
