API Considerations for Procurement Application Providers and Buyers

This IDC Market Note discusses the procurement application sector that is undergoing a major transformation driven by GenAI and AI agents, which are shifting teams from manual tasks to strategic, data-driven roles. The full potential of these AI agents depends on robust, flexible, and secure API connectivity, which enables seamless data exchange and real-time orchestration across platforms. APIs are now essential for integrating autonomous agents, automating workflows, and enhancing agility in sourcing - making open, interoperable architectures a competitive necessity. Buyers face challenges in evaluating API quality, documentation, security, and pricing, while providers must balance openness with control and profitability. Both sides must prioritize transparency, scalability, and support to maximize value and minimize risk. Ultimately, API connectivity is the foundation for innovation and resilience in procurement, and those that embrace agentic integration will lead the industry's evolution toward smarter, more efficient supply management.