AI and digital progress in Hungarian procurement – where do we stand?

In short: Our research with MLBKT, the Hungarian Association of Logistics, Purchasing and Inventory Management, surveyed 77 procurement professionals at mostly large Hungarian organizations. The picture is mixed: 85% have some procurement centralization and 81% use electronic ordering, yet 80% still run tenders over email, 73% evaluate bids without specialized software, and 53% have no electronic contract management at all. On AI, 56% have implemented nothing. Set against Deloitte's global CPO research, Hungary clearly trails on adoption — though the newest global data shows that converting AI pilots into production is proving hard almost everywhere. The gap that matters most isn't tooling; it's training, data quality, and defined transformation goals.

Two procurement departments can sit in the same market and work in completely different centuries: one running tenders by email with Excel trackers and paper contracts, the other using AI-supported bid analysis, automated supplier performance tracking, and self-matching invoices. That contrast isn't a forecast — it's the current reality of Hungarian procurement.

Procurement is evolving dramatically across the globe, and our research partnership with MLBKT — the Hungarian Association of Logistics, Purchasing and Inventory Management — set out to establish where Hungarian procurement actually fits into that transformation. Our findings highlight a mixed picture: notable advances in some areas, while substantial challenges remain in others.

The study draws insights from 77 procurement experts, primarily representing major corporations employing 500+ or 1,000+ people. What makes this sample particularly valuable is its diversity, though it's evident that manufacturing and energy sectors are leading the way in shaping industry trends.

Organizational context and digital foundations

Most surveyed companies, which typically employ between 500 and 1,000 people, have taken their first steps toward digital transformation. The survey reveals the following organizational patterns:

• 85% operate with some degree of procurement centralization
• Procurement teams typically consist of 5-15 professionals, with larger teams of up to 50 in sectors like energy, education, and construction
• 32% have fully implemented centralized procurement systems
• 43% continue to rely on hybrid approaches, combining procurement systems with Excel and email
• 6% remain committed to their current processes with no plans to adopt a procurement system

The reality gap in daily operations

The survey reveals striking contrasts in how procurement teams actually work:

• Despite having procurement systems, 80% of teams still rely on email for managing tenders
• Phone calls remain the second most common method of communication
• A surprising 73% evaluate bids without any specialized software support
• Supplier evaluation shows room for improvement: 33% conduct no formal assessments, while only 23% utilize dedicated evaluation systems

Contract management practices reveal similar gaps: 53% lack any electronic contract management system, and among those who do have systems, merely 8% offer integrated e-signature functionality. There is a silver lining, though – 83% maintain a shared platform that allows contract visibility across departments.

When it comes to purchase order management, the picture is more encouraging:

• 81% have implemented electronic ordering systems
• Two-thirds employ in-system electronic approvals
• However, 42% of suppliers still handle order confirmations manually outside the system
• More than half operate without a procurement catalog
• Automated invoice processing remains rare, with only 11% having achieved this capability

AI and automation: the adoption gap

Our findings reveal a considerable gap between Hungarian AI adoption and international benchmarks. Deloitte's Global Chief Procurement Officer research — now in its twelfth edition, drawing on more than 250 CPOs across some 40 countries — found that 92% of procurement leaders were assessing or planning generative AI capabilities, with 37% already piloting or deploying.

The current state of AI adoption in Hungary shows:

• A majority (56%) have not yet implemented any AI solutions
• 32% report occasional use of AI tools
• Only 10% are regular AI users

Where AI is being utilized, it's primarily for translation and communication purposes (25%), data analysis (11%), and content generation (7%).

This gap isn't uniquely Hungarian. Globally, piloting has raced ahead of production: roughly half of procurement teams have run AI pilots, but only a small minority have reached large-scale deployment. The international lead is mostly in experimentation, not in operating AI at scale — which is where the Hungarian findings point too. 

Key obstacles in automation adoption

Our research highlighted several critical areas requiring substantial development. The most pressing challenges include:

1. Insufficient workforce development, with 82% of professionals receiving no training in AI or automation
2. Poor strategic alignment, with 52% lacking defined digital transformation goals and metrics
3. Limited predictive capabilities, affecting 42% of organizations
4. Inadequate performance tracking, with 40% missing proper measurement systems

International research points to closely related challenges among procurement leaders: internal capability gaps in IT and AI competencies; poor data quality management – a challenge mirrored in Hungary, where only 42% of organizations conduct even occasional data cleansing; data security concerns, though these are diminishing as enterprise AI solutions mature; and a growing skills gap, with global competition for AI talent making expert teams harder to build and keep.

Moving forward: action steps

Our research points to four critical areas requiring immediate attention:

1. Complete digital transformation basics: many organizations still need to transition from manual and email-based processes to fully integrated systems.
2. Invest in workforce development: building AI and automation capabilities through structured training programs is crucial for future success.
3. Prioritize data quality: regular data maintenance and cleansing are fundamental prerequisites for any AI implementation — without clean data, AI solutions cannot deliver value.
4. Establish clear metrics: organizations need robust performance measurement systems with defined KPIs for digital transformation at all levels of procurement.

Conclusion

While digital transformation is underway in Hungary's procurement sector, significant opportunities for advancement remain. There's cause for optimism, however, as the industry shows strong appetite for change, with 68% of professionals actively seeking process improvement opportunities.

It's crucial to recognize that this transformation represents both a technological and cultural shift. The data clearly shows that organizations whose procurement leaders actively engage with automation possibilities demonstrate significantly higher AI tool adoption rates.

Procurement's future extends far beyond endless email threads and spreadsheet management. Success will be built on intelligent automation, data-driven decision making, and strategic planning that prioritizes strong partner relationships.

The critical challenge ahead for Hungarian procurement organizations lies in finding the right balance between maintaining operational excellence and driving technological innovation. Success in this transformation will depend on three key factors: comprehensive training programs, robust technological infrastructure, and most crucially, unwavering leadership commitment to digital transformation.

Frequently asked questions (FAQ)

1. What is this research based on?
It draws on a survey of 77 procurement professionals conducted in partnership with MLBKT, the Hungarian Association of Logistics, Purchasing and Inventory Management. Respondents came primarily from large organizations employing 500 or more people, with manufacturing and energy particularly well represented.

2. How far behind is Hungarian procurement on AI adoption?
Meaningfully behind on implementation: 56% of surveyed Hungarian organizations have implemented no AI solutions at all, 32% use AI occasionally, and only 10% are regular users. Internationally, Deloitte's CPO research found 92% of procurement leaders assessing or planning generative AI capabilities. The caveat is that global large-scale deployment remains low too — the international lead is mostly in intent and piloting rather than production.

3. If companies have procurement systems, why do they still run tenders by email?
Because system adoption and process adoption aren't the same thing. Even among organizations with procurement systems in place, 80% still manage tenders over email and 73% evaluate bids without specialized software support. The tooling exists; the workflows haven't moved into it.

4. What's the single biggest barrier to AI adoption in Hungarian procurement?
Training. 82% of surveyed professionals had received no training in AI or automation. Close behind are strategic gaps — 52% lack defined digital transformation goals and metrics — and data quality, where only 42% of organizations do even occasional data cleansing. None of these are solved by buying software.

5. Where should an organization start?
With the basics before the AI: move manual and email-based processes into integrated systems, establish regular data cleansing, define measurable transformation goals, then build workforce capability. AI delivers value only on clean, consistent, well-governed data — so data quality is a prerequisite, not a follow-up step.