Artificial intelligence advancements in procurement: transforming organizational buying behavior

Abstract

Purpose

The purpose of the paper is to discuss the potential of AI to impact organizational buying behavior. Potential impacts on organizational communication, Organizational Buying Center (OBC) structure and dynamics are discussed.

Design/methodology/approach

This research is conceptual in nature and uses narrative literature review to develop testable propositions derived from a technology overview and incorporates existing organizational buying behavior theory.

Findings

The article's conclusion suggests that significant changes are likely due to the adoption of AI. The nature of organizational buying is anticipated to undergo a shift toward increased reliance on AI-generated input. Additionally, it is expected that the size of OBCs may decrease, with reduced vertical and lateral involvement, while promoting greater coordination and less conflict among members.

Originality/value

This paper aims to conceptualize the effects of AI technology adoption on organizational buying situations and the structure and dynamics of OBCs. For practitioners, this conceptualization may equip them to navigate the impacts of the AI technological advancements effectively.

Citation

Osmonbekov, T., Johnston, W.J. and Donthu, N. (2024), "Artificial intelligence advancements in procurement: transforming organizational buying behavior", Journal of Business & Industrial Marketing, Vol. 39 No. 12, pp. 2745-2758. https://doi.org/10.1108/JBIM-01-2024-0026