Assessing the effect of Artificial Intelligence on procurement efficiency: A case of Prudent Health Care Lusaka

Abstract

This study, titled “Assessing the Effect of Artificial Intelligence on Procurement Efficiency: A Case of Prudent Health Care Lusaka,” examined how AI adoption influences procurement performance within a healthcare setting. Guided by institutional theory, the study employed a mixed-methods approach involving 100 purposively selected employees from the operations, IT, and procurement divisions. Quantitative data were analyzed using SPSS version 16, while qualitative responses underwent thematic analysis. Findings revealed moderate to high exposure to AI tools, with 60% of staff using AI-enabled systems, although adoption varied across specific functions such as spend analytics and chatbots. Respondents generally agreed that AI improved procurement speed, cost efficiency, demand forecasting accuracy, supplier management, and overall transparency. Despite these gains, significant barriers were identified, including high implementation costs, limited technical expertise, inadequate infrastructure, resistance to change, and insufficient management support. Digital readiness was mixed, as most staff possessed basic digital literacy but lacked AI-specific training, with only 40% reporting adequate preparation to use AI tools effectively. By and large, the study concludes that AI is positively transforming procurement efficiency at Prudent Health Care, but its full potential remains constrained by financial, structural, and capacity-related challenges. It recommends strengthening training, enhancing infrastructure, improving leadership commitment, and implementing robust change management and cybersecurity strategies, while future studies should compare AI adoption across institutions and track its long-term impact on procurement performance. Keywords: Artificial Intelligence, Procurement Efficiency, Digital Transformation, Healthcare Procurement, Institutional Theory, AI Adoption, Digital Readiness, Supply Chain Management, Prudent Health Care Lusaka, Mixed Methods Research.