In the fast-evolving world of procurement and technology, Fortune Global 500 company Schneider Electric is not sitting on the sidelines. At the forefront of digitisation, sustainability and artificial intelligence (AI), the company’s procurement strategy is as bold as it is structured.
Singapore-based Ard Verboon, Chief Procurement Officer at Schneider Electric, recently sat down with PASA’s Chief Content Creator, Jonathan Dutton, to unpack how AI is being deployed across the global energy leader – and why agility, not just intelligence, is the new business imperative.
Beyond the Hype: AI as a Force Multiplier
Artificial Intelligence is no longer a distant promise; it’s now a business necessity. While some treat it as a buzzword, Verboon and his team view AI, especially GenAI, as a “force multiplier.”
“We’ve made sizeable and significant investments in AI and GenAI,” he explains. “Our goal is to lead from the front. We understand this market well.”
At Schneider, where operations span countless systems, the complexity of data is staggering, but GenAI is turning that complexity into clarity.
“We’re equipped with multiple ERP systems and disparate data sources. GenAI helps us to unify, interpret and, crucially, act on that information. That’s what we call actionable intelligence.”
Whether it’s re-routing supply chains during natural disasters or identifying price inefficiencies across factories, the objective is clear: act faster and smarter.
Not Just Smart, but Actionable
For Verboon, it’s not about the flash of AI, but the substance.
“It’s not just intelligence we’re after; it’s actionable intelligence. AI gives us recommendations: which suppliers might be impacted, which orders to reroute, which alternatives are viable. If you act first, you win. You secure capacity, avoid disruptions and create competitive advantage.”
That emphasis on action leads naturally into conversations about agentic AI – systems that not only advise but also do. Imagine a system that flags a disrupted supply chain and autonomously places new orders. It’s not science fiction. It’s on the horizon and Schneider is preparing.
Still, Verboon offers a healthy dose of realism, “many companies have flashy demos, but deploying AI at scale is a different ball game.”
AI Won’t Replace People, but It Will Reframe Their Roles
Amid anxiety about AI taking jobs, Verboon is reassuring yet pragmatic.
“AI won’t replace human intelligence. What it does is liberate people from mundane tasks so they can focus on high-value, strategic decisions,” he says.
That shift, however, requires more than software – it requires cultural change.
“There’s a content discussion: What can AI do? And then there’s the adoption challenge: How do people embrace it? If you don’t give your team the right narrative, they’ll invent one. That’s just human nature.”
Cleaning Dirty Data: AI’s Unsung Heroism
One of AI’s superpowers lies in data cleansing. At Schneider, supplier and product data is often inconsistent across systems. One supplier may be listed under a dozen names. One component might have 1,520 different part numbers.
“The data doesn’t have to be perfect,” says Verboon. “AI is already good enough to work with good enough data. What matters is context and what’s relevant to a specific use case.”
That’s where GenAI shines: interpreting, categorising and harmonising disparate data for spend analytics, risk planning and process optimisation – all without requiring manual clean-up from R&D or IT.
From Contracts to Contingencies: Everyday AI in Procurement
So, where is AI being applied at Schneider today? Its use spans a wide range of functions – from automating contract generation and drafting RFPs and RFIs, to enhancing internal talent matching, demand planning, factory quality control and communications support.
While tools like autonomous negotiation bots are still in their infancy, Schneider is actively testing them, particularly for transactional or commoditised spend.
“Some of our teams are even using GenAI to produce internal videos explaining their processes. There’s no lack of experimentation,” says Verboon.
The Green Angle: AI Meets ESG
Schneider’s commitment to sustainability isn’t a marketing veneer; it’s core business.
“We help companies run energy-efficient operations and reduce their emissions. We even create full digital twins of factories, giving clients real-time visibility of energy consumption,” he says.
Once that data is in place, AI takes over – optimising everything from equipment operation to shipping routes, based on cost, speed or carbon footprint. Whether it’s choosing between air freight and ocean freight or rerouting trucks, AI is now deeply embedded in the ESG journey.
“A lot of ESG goals are just mathematical optimisation problems. AI is perfect for that.”
Agility is the New Competitive Edge
Looking ahead, Verboon believes the biggest challenge for CPOs in 2026 won’t be technology, it will be agility.
“I tell my teams: assume your data is wrong. That’s how you start to think the right way. Build scenarios. Plan for instability. The next few years won’t be more stable than the last. Those who respond best to change will win.”
He urges procurement professionals to prepare for disruption, not avoid it.
“From scenario planning to flexible supply chains, it’s about sensing early, deciding quickly and executing fast. Agility isn’t speed – it’s responsiveness.”
Final Thoughts
As the conversation winds down, Dutton asks Verboon if he gets to Australia much.
“My team is global, with a strong presence in North America and Europe. In Asia, we have large teams in Bangalore and China, and a significant presence in Singapore. Australia has a smaller team – simply because there haven’t been as many pressing challenges to address there, so I’ve not had to prioritise it,” he says.
Curiosity, combined with a deeply practical approach to transformation, is exactly why Schneider Electric is ahead of the AI curve in procurement.
The journey to AI maturity isn’t linear. It’s full of experiments, trade-offs and cultural shifts, but Schneider’s vision is refreshingly clear: focus on actionable intelligence, never lose sight of the human factor and build agility into every layer of your operation.
For CPOs everywhere, that may be the most important lesson of all.
This article is adapted from a wide-ranging interview conducted by PASA’s Jonathan Dutton with Ard Verboon, CPO of Schneider Electric. Content has been condensed and edited for clarity.
