Table of contents
Why It Matters
Gen AI tools like ChatGPT in the work environment are primarily used to gather information and support decisions. But in procurement, they quickly hit a wall. Managing supplier data, component specs, and quote-to-PO workflows aren’t clerical, they're technical. It’s precise. And it’s where the wrong detail costs real money.
This article explains why broad Gen AI tools fall short — and what works instead.
The Reality of Procurement Work
Talk to any procurement lead and you'll hear the same issues:
- Flipping between spreadsheets, supplier portals, and ERPs
- Re-entering the same specs and prices across tools
- Answering the same internal questions about parts or lead times
- Spending hours pushing forms instead of making supplier decisions
And the workload is only growing. More SKUs. More vendors. More pressure. Less time.
Where Gen AI Fails
ChatGPT and similar tools can gather some information and summarize, but that’s about it.
1. They Don’t Understand Components
Ask ChatGPT about component details or parametric details on a datasheet and you’ll get spotty answers and vague definitions, not usable sourcing intelligence.
2. No Access to Trusted Data
These tools are trained by scraping public sources, not your preferred suppliers or pricing agreements or any data behind corporate firewalls. The answers can be right, wrong, misleading, or outdated – and it’s very hard to tell the difference.
3. No Context, No Carryover
There’s no persistent memory between sessions. Every prompt is a new beginning.
4. Red Flag for Compliance
Standard ChatGPT services are not ITAR compliant, and ChatGPT is not SOC 2 compliant for free users. By default free users data and prompts can be used for future training. These policies alone can disqualify Gen AI platforms for serious procurement.
5. They Don’t Work in Your System
You can’t generate a quote, PO, or new part record. These tools don’t understand your procurement structures or policies.
Read More: Should Your 3PL be ITAR Compliant?
What Procurement AI Should Actually Do
Purpose-built AI for procurement handles the real work:
Embedded, Not Detached
Tools like Cofactr’s Chrome Extension operate inside the sites and systems you already use.
Understands Parts and Supply Chains
Not just text matching — actual comprehension of specs, packaging, and suppliers.
Context-Aware
Insights build on what’s already in your part library or supplier records.
Enterprise-Grade Security
Cofactr supports ITAR and GovCloud for teams that need audit trails and compliance.
What Cofactr Users Are Actually Using
Chrome Extension
Cofactr’s Chrome Extension embeds an AI driven connection directly into supplier websites to streamline research and sourcing.
What it does:
- Adds part insights directly to supplier product pages
- Lets users save parts into Cofactr without switching tabs
- Seamlessly connects to Analyze AI for deeper spec capture
It’s fast, accessible to all users, and designed for everyday use.
DocAI
DocAI helps extract structured data from supplier documents — no manual entry required.
Use it to:
- Extract pricing, part numbers, and descriptions from quotes or invoices
- Scan purchase orders, packing slips, and invoices
- Automatically match supplier invoices to your receiving records
Fully ITAR compliant, it’s available to all users and especially useful for taming the source-to-pay process.
Analyze AI: One-Click Part Creation
See a part on a supplier site? Paste the URL into Cofactr. Analyze AI scrapes the specs, pricing, and photo — then builds the part record.
Highlights:
- Create parts instantly from any supplier page
- Backfill missing specs
- Use with the Chrome Extension for deeper coverage
Tip: If you’ve already created a part but it’s missing details, just drop in the original supplier URL. Analyze AI will update the record.
Create with AI (Advanced Plan)
This is where things get serious. Drop in a PDF — a quote, PO, supplier bill, or requisition — and watch it generate a full Cofactr record.
Only available on the Advanced plan.
Benefits:
- Turns supplier PDFs into structured procurement records
- Removes hours of data entry
- Lets your team focus on supplier decisions, not copy-paste tasks
Before You Start Using Gen AI in Procurement
Gen AI has its place, and also has its limits. If your current system is messy, Gen AI might just replicate that mess faster. Structured data and clear workflows are the foundation. Cofactr helps you build both.
Ask these three questions about AI:
- Can the tool interpret actual part specs — not just product names?
- Does it make you faster without risking security?
- Can it integrate with your sourcing workflows?
If not, it’s not worth your time.
Read More: Scaling Hardware Startups with Procurement Automation
Final Word
Procurement is complex. It’s getting faster, more fragmented, and less forgiving. But AI built specifically for this space — like Cofactr — actually changes how fast and how accurate work gets done.
Want to make this easy? Schedule a free, no obligation Cofactr demo to see how we can help you automate price evaluation, component swaps, and much more.
Frequently Asked Questions
What is the core problem with using generic chatbots for procurement?
Procurement work is technical and precise—managing components, specs, suppliers, and quote-to-PO workflows. General chatbots summarize text but don’t reliably interpret part data or execute within procurement systems.
Why does Gen AI “hit a wall” in procurement?
Because it can’t consistently parse component specs, lacks access to your trusted internal data, doesn’t carry context session to session, raises compliance concerns, and can’t create or update procurement records in your systems.
What is procurement AI supposed to do instead?
Embed directly in your existing tools, truly understand parts and supply chains, build on your organizational context, and meet enterprise-grade security and compliance requirements.
How to turn supplier PDFs (quotes, invoices, POs) into structured records?
Leverage a document extraction workflow (DocAI / Create with AI) that reads pricing, part numbers, descriptions, and matches invoices to receiving records—eliminating manual entry.
How to create a part record from a supplier page in one step?
Paste the supplier URL into your procurement AI. It scrapes specs, pricing, and images to build or backfill the part record automatically.
How to fix incomplete part records you already created?
Drop the original supplier URL into the analyze workflow; it will update the existing record with missing specs and details.
What is “Analyze AI” in procurement terms?
A one-click part creation flow that extracts specs, pricing, and photos from supplier pages to instantly generate accurate part records.
What is “DocAI” and when should I use it?
It’s an extraction engine for supplier documents (quotes, POs, packing slips, invoices) that outputs structured data and automatically matches invoices to receiving records.
Why does a Chrome extension matter for procurement teams?
It embeds AI directly into the sites you already use, adds insights to product pages, enables one-click saving, and connects to deeper spec capture—making it fast and universal for daily work.
Can I rely on public Gen AI models to understand component datasheets?
Not reliably. Expect spotty, vague answers rather than actionable sourcing intelligence, especially for parametric details that drive real decisions.
Can I use free, general-purpose AI tools with sensitive procurement data?
Be cautious. Free tiers may use prompts/data for training and may lack required certifications; standard offerings can be disqualified by ITAR/SOC requirements.
Is it possible for AI to work inside my ERP, supplier portals, and sourcing tools?
Yes—when it’s purpose-built to embed in your existing systems and workflows, rather than operating as a detached chat interface.
When does purpose-built AI outperform generic chatbots in procurement?
When it can interpret real part specs, leverage your internal libraries and supplier records, maintain context, and comply with your security policies—all while writing to your actual procurement objects.
Where to focus first if our data is messy?
Start by structuring your core procurement data and clarifying workflows. AI will then amplify quality rather than replicating chaos faster.
Who benefits most from procurement-specific AI?
Teams juggling many SKUs and vendors under time pressure—anyone flipping between spreadsheets, portals, and ERPs, re-entering the same data, and fielding repeated internal questions.
When does compliance matter for AI in procurement?
Always—especially for organizations requiring ITAR, GovCloud, audit trails, and strict data handling. Choose solutions that meet those standards out of the box.
What’s the best way to evaluate procurement AI quickly?
Ask three questions:
• Can it truly interpret part specs (not just names)?
• Does it make you faster without compromising security?
• Can it integrate directly with your sourcing workflows?
If the answer isn’t yes across the board, it’s not worth your time.
Do I still need Gen AI if I have procurement-specific AI?
General Gen AI can help with information gathering and summaries, but you’ll need procurement-specific AI for precise, system-level actions like creating parts, extracting structured data, and tying outputs into your ERP/PO flows.
Can I see this working before committing?
Yes—schedule a no-obligation demo to see embedded research, one-click part creation, and document-to-record workflows in action.