Artificial Intelligence (AI)-Powered Procurement Fraud Detection Global Market Report 2025

The artificial intelligence (AI)-powered procurement fraud detection market size has grown exponentially in recent years. It will grow from $2.16 billion in 2024 to $2.79 billion in 2025 at a compound annual growth rate (CAGR) of 29.2%. Growth during the historic period resulted from increasing online transactions, rising cyber threats, growing demand for real-time fraud detection, wider adoption of digital payments, and heightened regulatory compliance requirements.

The artificial intelligence (AI)-powered procurement fraud detection market size is expected to see exponential growth in the next few years. It will grow to $7.71 billion in 2029 at a compound annual growth rate (CAGR) of 28.9%. Growth in the forecast period is expected from the increasing sophistication of fraud schemes, rising demand for AI-driven solutions, broader adoption across industries, growing volume of digital transactions, and greater focus on data security. Key trends in the forecast period include advancements in machine learning, integration of AI with existing systems, technologies enhancing real-time monitoring, developments in predictive analytics, and progress in data analytics and automation.

The increasing adoption of cloud-based solutions is expected to drive the growth of the artificial intelligence (AI)-powered procurement fraud detection market. Cloud-based solutions are services or applications hosted on remote servers and accessed online, allowing users to access computing resources, storage, or software without the need to install them on local systems. These solutions are gaining traction due to their scalability, enabling businesses to quickly adjust resources according to demand, which helps reduce costs and improve efficiency. As the use of cloud-based solutions grows, the volume and complexity of procurement transactions also increase, creating a need for AI-powered fraud detection systems that can analyze large data streams and accurately identify fraudulent activities that traditional methods may miss. For example, in December 2024, CloudKeeper, a US-based cloud cost optimization company, projected that end-user spending on cloud services would reach $723.4 billion in 2025, up from $595.7 billion in 2024, representing a 21.5% year-over-year increase. As a result, the rise of cloud-based solutions is significantly driving the growth of the AI-powered procurement fraud detection market.

Leading companies in the AI-powered procurement fraud detection market are focusing on developing advanced solutions, such as no-code AI agent builders, to offer greater automation, improved risk mitigation, and enhanced operational transparency. A no-code AI agent builder is a visual platform that allows users to design, customize, and deploy intelligent agents without the need for traditional programming. For example, in June 2025, ORO Labs, a US-based company, launched agentic AI capabilities that enable procurement teams to manage autonomous workflows, strengthen fraud and risk detection, and improve compliance throughout the source-to-pay cycle. This solution integrates autonomous AI agents, secure enterprise data connectivity, and advanced compliance monitoring to uncover complex fraud patterns, increase detection accuracy, and support data-driven procurement strategies. By leveraging autonomous workflows and secure data integration, these agentic AI capabilities provide procurement teams with a versatile toolset for managing complex tasks, such as risk triage and fraud detection, with enhanced efficiency and precision.

In October 2023, Basware, a Finland-based software company, acquired Glantus for an undisclosed sum. This acquisition aims to strengthen Basware's position in AI-driven accounts payable automation while expanding its fraud prevention and audit recovery capabilities. The acquisition enhances Basware’s ability to provide greater security and value to customers' financial operations. Glantus, an Ireland-based software company, specializes in AI-powered procurement fraud detection.

Major players in the artificial intelligence (AI)-powered procurement fraud detection market are Workiva Inc., ZYCUS INFOTECH PRIVATE LIMITED, Onfido Ltd., Feedzai Inc., Rapidops Solutions Private Limited, AppZen Inc., Napier AI, Goodworklabs Services Private Limited, Trustpair, Xelix, SoftCo Unlimited, ThetaRay Ltd., Miquido, Tookitaki Holding Pte. Ltd., Featurespace Limited, Designveloper, Rapid Innovation Inc., ControlHub Inc., SuperAGI Inc., and AiPrise Inc.

North America was the largest region in the artificial intelligence (AI)-powered procurement fraud detection market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in artificial intelligence (AI)-powered procurement fraud detection report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

The artificial intelligence (AI)-powered procurement fraud detection market research report is one of a series of new reports that provides artificial intelligence (AI)-powered procurement fraud detection market statistics, including artificial intelligence (AI)-powered procurement fraud detection industry global market size, regional shares, competitors with a artificial intelligence (AI)-powered procurement fraud detection market share, detailed artificial intelligence (AI)-powered procurement fraud detection market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI)-powered procurement fraud detection industry. This artificial intelligence (AI)-powered procurement fraud detection market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Artificial intelligence (AI)-powered procurement fraud detection involves the use of AI technologies such as machine learning, natural language processing, pattern recognition, and predictive analytics to automatically identify, flag, and prevent fraudulent activities in procurement operations. It analyzes large volumes of procurement data, including purchase orders, invoices, contracts, supplier communications, and transaction histories, to detect anomalies, suspicious patterns, or inconsistencies that may indicate fraud or unethical practices.

The primary components of AI-powered procurement fraud detection include software and services. Software consists of programmed digital instructions that enable computers to perform procurement tasks, manage workflows, process data, and execute automated operations efficiently. Deployment options include on-premises and cloud-based solutions, serving both small and medium enterprises and large organizations. Applications include invoice fraud detection, vendor fraud detection, payment fraud detection, contract fraud detection, and more, with end users spanning banking, financial services, and insurance (BFSI), healthcare, retail and e-commerce, manufacturing, government, and other sectors.

The countries covered in the artificial intelligence (AI)-powered procurement fraud detection market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence (AI)-powered procurement fraud detection market includes revenues earned by entities by providing services such as contract compliance monitoring, relationship analysis, pattern analysis, automated investigation, and risk management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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