AI Terms in Procurement Explained: ML, GenAI, LLMs, NLP, and AI Agents

Hardly any procurement vendor today gets by without the label “AI-powered” – from sourcing platforms to contract tools and chatbots. But for procurement leaders, separating substance from marketing buzzwords is not always easy. Machine Learning, Generative AI, Large Language Models, and AI Agents are often used interchangeably, even though they differ significantly in capabilities, risks, and governance requirements. This article breaks down the key differences every procurement leader should understand before the next AI investment.