AI’s Role in Procurement With Kindred Group

On this episode of the “Gen AI Breakthrough” podcast, Associate Principal, Nic Walden interviews Chief Procurement Officer, Alex Farrow of the Kindred Group to discuss the impact of artificial intelligence (AI) on the digital gambling industry. Alex shares insights into how the Kindred Group leverages AI to enhance efficiency, improve decision-making and automate processes within their operations. The conversation also highlights the challenges and opportunities associated with integrating AI in procurement and contract management.

Welcome to The Hackett Group’s “Gen AI Breakthrough” podcast,where top experts give actionable artificial intelligence (AI) insights, expert advice and strategies to achieve breakthrough business performance. In this episode, host Nicolas Walden is joined by Alex Farrow, head of Procurement at Kindred Group, a 25-year-old digital entertainment business operating in the regulated gambling and gaming space. With 1.7 million active customers and around 2,000 employees, Kindred is highly data-driven and event-responsive, processing 15 billion transactions annually. Alex explains that while AI has clear benefits – like improved efficiency, automation and decision-making – its use in procurement is still maturing. Current applications focus on productivity tools – AI helps gather supplier insights, enhance communication, summarize contracts and create presentations. However, more complex tasks like risk analysis remain limited in value unless further customized.

Alex describes a culture of curiosity and experimentation within Kindred’s procurement team, where knowledge sharing drives broader AI adoption. The company has invested early in tools like Microsoft Copilot and ChatGPT Enterprise, which support secure, efficient workflows and comply with data privacy regulations. AI is also deeply embedded in customer-facing functions – from pricing optimization to personalized content and SEO. Alex emphasizes that leadership has pushed AI literacy throughout the organization, fostering scalable growth. He reflects on Kindred’s transformation from a hypergrowth company – once focused solely on expansion – to a more balanced organization, emphasizing growth, cost, and risk. Despite being a small team managing significant spend, procurement at Kindred has evolved through lean, agile practices and strong executive backing.

Then, Alex outlines how his team delivers exceptional value – up to 30 times return on investment annually – by maintaining a sharp focus on high-impact, commercially driven work, rather than scaling into a large operation. He emphasizes aligning closely with company objectives, whether that’s driving growth, managing costs, or navigating risk and compliance. Through strong business partnerships, trust building and a clear understanding of how the business makes money, procurement has gained influence across the organization. He underscores a philosophy of continuous improvement and integrity, encouraging his team to make each day better than the last. He also identifies four essential pillars for successful procurement leadership: business partnering, talent development, technology enablement and streamlined processes. Empowering teams to pivot quickly, maintaining simple and agile processes, and enabling stakeholders with self-service data have all been key to Kindred’s transformation. Alex also reflects on lessons learned such as the importance of early executive engagement and ensuring easy access to critical data. His parting advice is to fight for a seat at the table when necessary and always stay visible, informed, and proactive in demonstrating procurement’s value.

Time stamps:

0:12 – Welcome to this episode hosted by Nicolas Walden.

2:02 – Early adoption and strategic approach to AI in procurement.

4:23 – Evolving AI usage and organizational impact.

10:14 – Kindred’s procurement evolution and unique growth journey.

12:43 – Driving strategic value through focus and alignment.

17:12 – Simplified processes and measurable impact.

18:50 – Lessons learned and final reflections.