LAS VEGAS — Nordstrom has started using artificial intelligence “quite heavily” within its procurement spend analytics software, VP and Chief Procurement Officer Karoline Dygas said.
The technology is helping the retailer build sourcing category strategies, Dygas said during a panel at the Manifest 2026 in Las Vegas. AI is also providing Nordstrom's procurement team with more visibility into spending, while helping the chief procurement officer research suppliers before meetings.
"It spits out so much information that it would really take me hours to compile," Dygas said, adding that she bases the value of AI today on speed and time saved.
Nordstrom currently accesses AI through its procurement intelligence software from Suplari. Eventually, Dygas wants to expand her team's use of AI and is looking for a procurement process orchestration tool with the technology.
"As you know, procurement is not really linear, and most of the tools are built to be linear, and I'm trying to find a solution that will allow us the agility and the resiliency to be flexible in how we approach supporting our business with our sourcing and procurement needs," Dygas said.
Dygas also wants to deepen her understanding of predictive AI, which uses historical data to forecast demand, and prescriptive AI, which builds on those forecasts to recommend specific actions. Dygas is particularly interested in the latter.
"I want AI to tell me what I need to know," Dygas said. "Right now, we're telling it what we need to know. That defeats the purpose."
But before Nordstrom considers any AI tool, the vendor must demonstrate strong data governance, meaning the technology is accurate, secure, and protective of the company's data, Dygas said.
"Make sure your tool is focused on really, really being good with the data and allowing for really good inputs, and there's no hallucinations," she said, referring to instances where an AI model confidently generates false, misleading or fabricated information.
While AI needs improvement, companies cannot afford to ignore it, Dygas said.
"If you're not embracing AI, and if people in your company are not embracing AI, you're a little late, because that train has left the station," she said. "The good thing is, if you run fast, you can catch up."
