Over the last two decades, we’ve witnessed a number of players in the Source-to-Pay (S2P) sector, among them Zycus, Coupa, Ivalua, SAP Ariba, Donkey, Zip, Tonkean, and others. Zycus has brought forward their new Merlin Agentic AI Suite, which they envision as a leading-edge solution that streamlines, simplifies and transforms the procurement request intake to pay management process. Their stated goal is to leverage the promise of Agentic AI and drive breakthroughs in user experience, process efficiency, procurement results, and privacy/data security.
Given the magnitude of this new product launch, I wanted to explore Zycus’ Intake capabilities in depth – covering my perspectives based on specifications, use cases, and seeing it in action – to show how it drives improvements in traditional pain points in procurement, efficiency, end user experience, and enablement of strategic procurement tasks. Let’s dive in.
Procurement Intake: An Underserved Process
In nearly all cases, the procurement request or intake process is the first step toward purchasing goods or services. Despite its foundational role, intake has traditionally been a pain point for both end-users and procurement teams due to:
1. Complex Processes: Manual request forms, multiple approval workflows, and unclear processes and ambiguity in procurement policy create confusion.
2. Lack of Standardization: Procurement requests are often inconsistent, leading to incomplete or inaccurate data.
3. Poor User Experience: Procurement tools are frequently unintuitive, discouraging users from engaging early or correctly.
4. Time Delays: Approval bottlenecks and repetitive data entry slow down the entire procurement cycle.
For procurement teams, managing this chaotic intake process consumes a significant amount of time, preventing them from focusing on higher-value activities like strategic sourcing, supplier management, and spend analysis. Just as importantly, end users and their organizations get frustrated by these processes and may use them begrudgingly, or try to circumvent them altogether, neither of which builds goodwill with the procurement organization. They can in fact add to the “roadblock” perception that procurement tries so hard to shed.
Zycus recognized these challenges and built Merlin AI Intake to tackle them head-on with intelligent automation, AI-powered insights, and an intuitive user interface which integrated into Microsoft Teams (MS Teams). The days of the end user spending endless time trying to self navigate through catalogues with low tech chat bots and hopefully finding the right items from the right supplier are over. Zycus has introduced a much better way, and I’m impressed.
Merlin AI Intake: Key Features and Capabilities
# 1. Intelligent Guided Buying
Merlin AI Intake simplifies procurement by leveraging Conversational AI to guide end-users through the request process. Rather than requiring users to navigate complex procurement systems or workflows, the solution offers a user-friendly, conversational interface that resembles consumer shopping experiences. Spelling errors in your request, or don’t word it just right? No problem. Merlin AI Intake accepts descriptive inputs, rather than just requiring prescriptive inputs. I can’t emphasize what a leap forward this is. “The HVAC system only blows hot air” is something Merlin AI Intake understand and helps you solve. This is 21st century procurement at its best.
– AI-Powered Recommendations: Based on historical purchasing data, organizational policies, and user behavior, Merlin AI suggests the right products or services. For example, if a user needs office supplies, the system can recommend preferred suppliers, approved catalogs, or even suggest quantities based on past usage. Further, if you go off contract, rather than letting the end user make their own random choices from the supplier wilderness, it makes strong suggestions based on pre-qualifications, and assigns scores to each supplier, helping the decision process to be a smart one.
– Policy Compliance Enforcement: Merlin AI ensures all requests comply with procurement policies and organizational guidelines, reducing maverick spending. If a user attempts to request a product from a non-preferred vendor, the system nudges them toward compliant options. I think Merlin AI Intake will help make tail spends – something that has plagued procurement for all my decades in the business – a legacy problem.
Interestingly, unlike legacy requestioning systems or even competitor intake offerings, Merlin Intake does not rely on rule-based system to codify the procurement policy. Rule based systems as we know have significant limitations:
– Can get complicated to configure extensive rules
– Often procurement policies different by region or Business unit within the same company
– Every time there is a change or refresh in procurement policy, a reconfiguration is required in the intake system.
Zycus’ Merlin Intake has used Generative AI for policy enforcement which ensures that the procurement policy is dynamically updated in real time in Merlin Intake for any changes to the underlying policy.
By delivering these recommendations in real time, Merlin AI minimizes errors, ensures compliance, and accelerates the buying process. For once, end users will feel like a system was implemented that was to their benefit instead of just for procurement’s benefit. This is going to drive a much higher organic compliance rate.
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# 2. Conversational AI for Seamless Intake Requests
One of the standout features of Merlin AI Intake is its conversational AI capabilities. Unlike traditional systems that rely on rigid forms, Merlin AI uses natural language processing (NLP) to interact with users intuitively.
– Human-Like Conversations: Users can simply describe their needs in plain language. For example, instead of filling out multiple fields, a user can say, “I need 20 laptops for the IT team,” and Merlin AI will automatically:
– Populate the necessary fields.
– Identify preferred suppliers.
– Suggest relevant product catalogs.
– Kickstart the approval workflow.
– Error Reduction: AI ensures data accuracy by prompting users for missing information or clarifying ambiguous requests. If a user’s input is unclear, Merlin AI might respond with, “Do you mean Dell Latitude laptops or HP ProBooks?”
This conversational approach dramatically reduces friction, making it easier for end-users to submit requests while improving the quality of procurement data. It might as well be a procurement person on the other end of the conversation, because that is exactly what end users will experience and perceive – which means huge time savings and improved results for procurement.
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# 3. Auto-Classification and Categorization
One of the traditional pain points in intake management is classifying procurement requests accurately. Merlin AI Intake automates this process through its auto-classification engine.
– AI-Based Categorization: Using machine learning, Merlin AI automatically categorizes requests based on descriptions, historical data, and product/service taxonomies. For example, if a user requests a “software subscription,” the system tags it under IT services, ensuring the request is routed to the appropriate workflow.
– Data Standardization: By automating categorization, Merlin AI standardizes procurement data, improving spend visibility and analytics.
– Routing Optimization: Proper categorization ensures requests are routed to the right category managers or approvers, reducing delays caused by manual intervention.
This capability not only accelerates intake but also enables downstream processes—like sourcing, purchasing, and reporting—to function seamlessly.
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# 4. Workflow Automation and Approval Management
Merlin AI Intake eliminates manual bottlenecks by automating workflows and approvals.
– Dynamic Approval Workflows: The system automatically determines approval hierarchies based on factors like request value, category, and user role. For instance, a high-value purchase might require manager and finance approval, while a low-value item could proceed with auto-approval.
– Real-Time Status Updates: Users receive instant notifications on their request status—whether it’s approved, rejected, or pending further input.
– Escalation Management: If a request stalls at a specific approval stage, Merlin AI can trigger escalations or reminders to avoid delays.
By automating approvals, Merlin AI significantly reduces cycle times while ensuring proper governance and oversight.
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# 5. Integration with S2P Ecosystem
Merlin AI Intake is built in and not bolted on the S2P unlike the standalone intake tools. This means it seamlessly integrates with Zycus’s broader S2P suite and other enterprise systems, creating a unified procurement experience.
– ERP and P2P Integration: Once a request is approved, it flows directly into downstream procurement processes like purchase order creation, supplier communication, and invoice management.
– Data Synchronization: Integration with ERP systems ensures that procurement data—such as budgets, GL codes, and supplier master records—remains up to date.
– Contract Management: If a request involves a contractual agreement, Merlin AI connects with contract lifecycle management tools to identify existing contracts or trigger new ones.
This end-to-end integration eliminates silos and ensures procurement operates as a cohesive, data-driven function. It also gives a huge edge over the competition, as the solution is not modular. It’s an enterprise-like solution – no data handoffs, no modular applications glued together, no more endless privacy and data leakage points of failure. It’s designed from the ground up as a singular capability, and it shows in every aspect of how it operates.
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The Benefits of Merlin AI Intake
Merlin AI Intake delivers measurable benefits across the organization, transforming procurement into a frictionless and strategic function:
1. Enhanced User Experience: The conversational AI interface makes procurement intuitive, encouraging higher adoption rates among end-users. Furthermore, end users can access Merlin Intake through the familiar MS Teams (Microsoft Teams) eliminating the need to login to the S2P solution.
2. Faster Procurement Cycles: Automated workflows, approvals, and data classification reduce cycle times significantly.
3. Improved Data Quality: AI-powered auto-classification ensures accurate and standardized procurement data.
4. Cost Savings: By enforcing policy compliance and guiding users toward preferred suppliers, Merlin AI minimizes maverick spending and reduces procurement costs.
5. Greater Efficiency: Procurement teams spend less time managing requests and more time on strategic tasks like supplier negotiations and category management.
6. Increased Visibility: Standardized and centralized data enhances spend visibility, enabling better decision-making and reporting.
7. Scalability: Merlin AI can handle a high volume of requests, making it suitable for large enterprises with complex procurement needs.
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Key Differentiators for Zycus Merlin AI Intake
In looking at the key competitors such as SAP Ariba, Jaggaer, GEP SMART, Coupa, Donkey, Zip, and Tonkean, they all have strengths, but there are a few areas where I see Zycus Merlin AI Intake as having a competitive advantage. I’ve outlined those areas below.
AI-Powered Automation: Zycus Merlin AI Intake outpaces traditional competitors like SAP Ariba and Coupa by streamlining procurement intake requests using AI, ensuring accuracy and efficiency. Compared to stand-alone tools like Donkey and Zip, which are ‘bolt-on’ and rely on rules-based automation rather than true AI, Zycus delivers smarter workflows that evolve with organizational patterns and is built-in to the S2P solution.
User-Friendly Workflow: Zycus’ intuitive interface within the familiar MS Teams, minimizes manual work and friction. While competitors like Ivalua and Coupa often face criticism for steep learning curves, tools like Tonkean provide workflow customization but require significant user input to optimize. Zycus simplifies onboarding and daily use with its straightforward and adaptive design powered through the familiar MS Teams application.
Scalable and Flexible: Compared to Ivalua or Jaggaer, which require extensive customization, Zycus offers out-of-the-box solutions that adapt quickly to growing organizational needs. Zip and Tonkean provide flexibility for niche applications but often fall short in enterprise-level scalability without significant custom development.
Seamless Integration: Zycus seamlessly integrates with ERP systems and third-party platforms while focusing on AI-driven value creation. Coupa and SAP Ariba achieve similar integration but with more rigidity. Donkey and Tonkean support integrations but lack depth in procurement-specific functionalities, making Zycus a more specialized choice.
AI-Driven Insights: Unlike competitors like Zip and Donkey, which emphasize process automation but lack robust AI analytics, Zycus Merlin AI delivers actionable insights into procurement trends, user behavior, and cost-saving opportunities, enabling proactive decision-making.
Configurable Workflows with AI Enhancement: Zycus offers configurable workflows enhanced with AI suggestions, providing balance between automation and control. While Tonkean focuses on customizable no-code workflows, it doesn’t leverage AI to optimize procurement intake as effectively as Zycus.
Global Reach and Compliance: With a strong focus on compliance and global scalability, Zycus ensures alignment with regulatory standards across regions. In contrast, Donkey and Zip cater primarily to smaller-scale, localized operations and don’t offer the same level of enterprise-grade compliance features.
The Future of Procurement with Merlin AI Intake
As organizations continue to embrace digital transformation, procurement will play an increasingly strategic role in driving cost savings, innovation, and sustainability. Zycus Merlin AI Intake represents a key milestone in this journey, transforming procurement intake from a cumbersome task into a streamlined, intelligent process.
By combining AI, automation, and user-centric design, Merlin AI Intake empowers procurement teams to operate with greater efficiency, accuracy, and impact. As the solution evolves, capabilities like predictive analytics, deeper supplier insights, and voice-based AI interactions are likely to redefine how organizations manage procurement requests.
For procurement leaders seeking to optimize their Source-to-Pay processes, Zycus Merlin AI Intake offers a future-ready solution that simplifies intake, enhances compliance, and unlocks the full potential of procurement.
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Conclusion
Looking ahead to 2025, my advice to CPOs remains the same: don’t get caught on the sidelines with this. Agentic AI capabilities in procurement are a game changer. The train is leaving the station, and CPOs need to mobilize their organizations in the right direction or be left behind. There is an opportunity here to not only elevate end user experiences, but perhaps more importantly, for highly intelligent automation that will extract procurement from so many non-value added transactions and processes in ways never before possible – and allow them to focus on the more leveraged strategic sourcing activities that they were hired to do. This then furthers procurement’s position not as a cost center, but as a source of enterprise advantage.
Zycus has been at the forefront of procurement innovation for over two decades, and Merlin AI Intake demonstrates its commitment to solving real-world challenges with cutting-edge technology. By transforming the procurement intake process with AI, Zycus not only improves efficiency but also enables procurement teams to drive greater business value. In a world where procurement is no longer just about savings but about agility, compliance, and innovation, Merlin AI Intake sets the standard for what’s possible. From my perspective, the bar has just been set higher. Much higher.
