LSE adopts AI-powered procurement system, reports 15% cost savings

The London School of Economics (LSE) has implemented an Artificial Intelligence (AI)-driven procurement system that it says has already generated 15% cost savings in its first three months of operation.

The university, which spends £150 million ($202 million) annually on non-payroll goods and services, began using the autonomous sourcing platform at the start of the year. LSE claims to be the first UK university to adopt this technology.

Cristian Martin, LSE's Director of Procurement Services, attributes the early savings to the system's "best and final offer" feature, which identifies potentially optimal contracts from bidders. The technology was initially trialed in the IT and Estates departments - the university's largest cost centers - before planned expansion across all departments within six months. Martin says:

With AI procurement, we're able to create a safe space for my colleagues to interact with a well-trained AI chatbot that can help them ...