The “Now-with-AI” Tech Tax
October 29, 2026
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Handling AI Price Hikes
Plus the human side of AI and trade policy in court.
Welcome to edition #34 of The Sidekick!
Procurement always works best when things get chaotic. Right now, we’re steering through a wild mix of supplier behavior: tech vendors slapping "AI" labels on old software to justify massive price increases, trade policy tied up in federal court, and services inflation creeping back up to haunt indirect spend.
This issue focuses on keeping control of your margins while everyone else loses theirs.
We unpack where real software ROI actually lives, track the Section 301 forced-labor tariff litigation, break down rising services costs, and look at new data on how AI adoption changes the game for our teams and entry-level talent.
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Let's get into Issue #34...
Procurement's Guide to Controlling Indirect Spend
Seven warning signs it's out of control an how to reign it in.
Navigating “Now With AI” Updates
And the price hikes that follow.
Every category manager has seen the email. Your enterprise software supplier announces a shiny "Now with AI" update, quickly followed by a renewal quote slapped with a 15% to 30% price hike.
Vendors love treating these features as mandatory tier upgrades, putting sourcing teams under immediate pressure.
Finding genuine operational value behind those price hikes takes sharp digging.
Real savings from AI tools show up in high-volume, repetitive tasks: automated invoice matching, spend data taxonomy cleanup, contract metadata extraction, and proactive supplier risk tracking. In these specific areas, automation speeds up cycle times and catches financial leakage that drops straight to the bottom line.
Questionable value shows up when vendors slap lightweight generative text wrappers or basic reporting dashboards over existing modules while charging premium rates.
What Can Procurement Do?
Procurement teams can apply four levers to shut down arbitrary price hikes during renewal season:
- Demand utilization data. Make vendors show exact usage metrics for existing features before agreeing to pay extra for AI add-ons.
- Unbundle packages at the negotiating table. Push for terms that let your business opt out of extra AI modules, preserving core functionality at baseline pricing.
- Lock down annual escalation caps. Ensure every agreement includes tight annual rate increase limits, blocking surprise price jumps at renewal.
- Tap into pre-negotiated GPO tech agreements. Group Purchasing Organizations like Una aggregate buyer volume to secure clear pricing, transparent terms, and pre-vetted rates across IT hardware, software, and services.
Tariffs in Court: Section 301 Under Scrutiny
The Court of International Trade hears arguments.
If you’ve been tracking import costs, you know the Section 301 forced-labor tariffs of 10% or 12.5% took effect on July 24. On September 30, the U.S. Court of International Trade (CIT) heard oral arguments in a major lawsuit challenging how those duties were put in place.
The panel ordered extra briefs through mid-October, and we are still waiting on a ruling. For now, the tariffs remain active.
A court decision modifying or overturning these duties will open the door for refunds, making administrative prep critical while the judges deliberate.
What Can Procurement Do?
- Keep entry records organized for possible refunds. Store every customs entry form (CF-7501) and proof of duty payment in one place, positioning your team for fast duty drawback or protest claims if the CIT strikes down the tariffs.
- Check tariff pass-through clauses across contracts. Audit supplier agreements to verify whether vendors possess explicit contract rights to pass line-item duty increases straight to you.
- Map supplier and category exposure. Identify tier-one and tier-two suppliers relying on imports affected by the July 24 decision, isolating exposed spend lines and reviewing domestic or regional supply options.
📰 In Other News...
Keeping a pulse on the industry.
Services Inflation Hits Four-Year High
The ISM Services Prices Index surged to 74.0 in September, marking its highest reading since July 2022. Physical goods pricing has leveled off, but services inflation is roaring back under higher labor costs and fuel surcharges. Expect tougher rate negotiations across facilities, professional services, and logistics.
U.S.-China Bilateral Tariff Cut
In September, the U.S. and China finalized an agreement cutting tariffs on roughly $60 billion of bilateral goods. This targeted duty reduction gives immediate cost relief across key industrial parts and commercial lines.
🤖 AI Procurement News
Artificial intelligence shaping the industry.
Bringing AI into procurement changes how we build, train, and run our teams. Recent industry data shows a gap in practical workplace preparation:
- Executive Hopes vs. Reality: Gartner reports that 63% of senior procurement leaders expect huge performance gains from AI over the next three years. Yet, only 25% of organizations have actually redesigned job roles to support that vision.
- The Shift in Early-Career Hiring: Stanford research highlights a distinct shift in junior talent: employment for 22- to 25-year-olds in highly AI-exposed roles sits about 19% below historical trends. As automated tools handle basic data entry, entry-level career paths need a fresh playbook.
- Operating Models Lagging Behind: Research from HFS and Art of Procurement reveals that only 15% of procurement functions have reimagined their operating model around AI capabilities. Real progress means moving team energy away from tactical processing and toward strategic supplier management and business partnering.
💫 Resources from Una
- Guide: Procurement's Guide to Controlling Indirect Spend
- Playbook: The Supplier Relationship Management Playbook for GPO Members
- Article: The Contract Renewal Checklist
- Article: Why Small and Mid-Sized Businesses Are The Fastest-Growing GPO Members
- Article: Logistics Costs Recently Surged to Their Highest Levels Since Covid
- Article: Ask a Chatbot - What Web Visitors Are Asking About Una and GPOs
- Article: The Costs Procurement Isn't Measuring
- Article: The Structural Fix for Maverick Spend
- Podcast: Episode 247 Featuring Vernetta Tyler
- Podcast: Episode 248 Featuring Alec Cranston
- Podcast: Episode 249 Featuring Hemangi Tawade
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