Source-to-Pay trends shaping the market: 5 ways AI is transforming spend management

Shared 04 July, 2025

Source-to-Pay trends shaping the market: 5 ways AI is transforming spend management

The property management and real estate sectors are undergoing rapid transformation.  From rising customer expectations to pressure on margins and increasing supply chain  complexity, organisations are rethinking how they manage procurement, finance and  supplier operations. At the heart of this evolution is Source-to-Pay (S2P), and several key  trends are emerging that are reshaping how companies operate and deliver value. 

  1. AI with a human touch 

Artificial Intelligence (AI) is no longer a distant concept, it’s a vital part of modern spend  management. Its true value, however, lies not just in automation, but in enhancing human  decision-making. 

AI-powered tools now enable organisations to identify potential overspending before it  happens, automate invoice processing and offer predictive insights that support better  decision-making. By converting unstructured data into formats such as electronic invoices, AI  significantly reduces manual work, errors and administrative effort. 

Yet AI is most effective when working in harmony with human expertise. While machines  handle repetitive, rule-based tasks, people remain central to strategic thinking and complex  negotiations. The future lies in this collaboration, using AI to augment, not replace,  professional judgement. 

  1. Data is the driving force 

At the core of any successful AI or procurement strategy is data. For many organisations,  fragmented systems and siloed databases often limit visibility and efficiency. Addressing this  challenge starts with data orchestration – the process of standardising and consolidating  data across departments and systems. 

By turning disconnected data into structured, actionable intelligence, organisations can  generate meaningful insights, track compliance, monitor supplier performance and identify  opportunities for improvement. This data-led approach supports better financial control and  drives smarter, faster decision-making. 

A customer testimony to the benefits of data and Invoice Capture AI. “The two week AI trial  highlighted a noticeable improvement with Invoice Capture’s performance. The resultant  data analysis provided by Proactis presented us with a clear justification to adopt these new  capabilities. Since adopting the new AI solution, we have been delighted with the continuous  performance improvement from the solution.” Government of Gibraltar. 

  1. From guided buying to guided behaviour 

The concept of “guided buying”, steering users toward preferred suppliers and compliant  purchases, is evolving into “guided behaviour.” This broader approach encompasses  everything from supplier selection and negotiation strategy to approval workflows and  contract terms. 

Using integrated technology, organisations can embed policy and best practices directly into  everyday processes. This promotes consistency, increases compliance, reduces risk and  ultimately simplifies the buying experience for all stakeholders. 

A recent example is Coventry City Council. Staff members now have easy access to  approved catalogues, helping the Procurement team to increase on-contract spend while  enabling employees to quickly and easily access what they need to carry out their jobs. “Not  only does this save time purchasing goods and services, but it also reduces maverick spend  and enables our teams to concentrate on more value-adding activities.”

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  1. B2C experience in a B2B world 

The expectations of software users in B2B environments are changing, driven by the ease  and simplicity of consumer apps. Procurement and Finance professionals increasingly  expect the same intuitive design and responsiveness in the tools they use at work. 

A modern S2P solution should offer clean interfaces, minimal data entry requirements and  seamless workflows. This not only improves user adoption but also boosts productivity and  accelerates time to value. Future-ready systems will feature intelligent B2B marketplaces  that make it easier to buy from approved suppliers, supporting better procurement outcomes  and smoother supply chain operations. 

  1. Strengthening supply chain resilience 

Property organisations rely on complex supply chains, often made up of contractors,  suppliers and service providers. In today’s volatile economic environment, even a minor  disruption can delay projects and impact service delivery. 

This is particularly relevant as organisations face mounting pressure to retrofit properties and  meet new standards. Delays in materials or contractor availability can hinder both  development and ongoing maintenance efforts. 

Digital tools such as cloud-based procurement systems, real-time tracking and AI-powered  control help build more resilient supply chains. By providing greater visibility and enabling  quicker responses to change, they allow organisations to maintain control and avoid costly  delays. 

A future-ready approach 

For property management and real estate firms, these trends signal a shift in how value is  delivered across the Source-to-Pay cycle. By combining modern technology with human  insight, organisations can increase efficiency, improve governance and achieve greater  financial control, all while enhancing the experience for tenants, clients and staff. 

London Borough of Bexley has ‘future-proofed’ its commissioning cycle with Proactis  Contract Management. “We take a long-term view of our procurement strategy to not only  ensure we’re improving efficiencies for today, but that we’re also ‘future-proofing’ our  operating model. And we see technology as a core building block to that, so with Proactis we  chose a provider that can grow with us.” 

Those who embrace innovation in spend management will be better positioned to navigate  uncertainty, reduce risk and drive long-term success. 

Are you ready to learn more? Unlock the future of Procurement and Finance

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