--- title: Activate the Spend categorization agent description: The Spend categorization agent predicts product and spend categories on purchase requisition lines. Complete the configuration tasks that activate the agent and its supporting prediction services in ServiceNow Otto for SPO. locale: en-US canonical_url: https://www.servicenow.com/docs/r/australia/source-to-pay-operations/sourcing-and-procurement-operations/activate-spend-categorization-agent.html release: australia product: Sourcing and Procurement Operations classification: sourcing-and-procurement-operations topic_type: concept last_updated: "2026-07-28" reading_time_minutes: 3 keywords: [Spend categorization agent, product category prediction, spend category prediction, Now Assist, AI agent activation] breadcrumb: [Configure ServiceNow Otto for SPO, ServiceNow Otto for SPO, Sourcing and Procurement Operations, Finance and Supply Chain] --- # Activate the Spend categorization agent The Spend categorization agent predicts product and spend categories on purchase requisition lines. Complete the configuration tasks that activate the agent and its supporting prediction services in ServiceNow Otto for SPO. The Spend categorization agent uses AI to predict the product category and spend category for items on purchase requisition lines, reducing manual data entry and helping avoid misclassification. The agent predicts the product category first, followed by the spend category. Predictions draw on machine learning solutions, taxonomy mappings, and text extracted from related attachments. ## Why activation is needed The Spend categorization agent and its supporting prediction capabilities are inactive when ServiceNow Otto for SPO is installed. Activation confirms that the underlying prediction solutions are ready, turns on the related AI skills, sets the prediction system properties, and makes the agent available in the ServiceNow Otto panel. ## Activation tasks Complete the following tasks in the order listed. Each task confirms or enables one part of the prediction chain that the agent depends on. - [Confirm product category classification solutions](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/confirm-product-category-solutions.md): Confirm that the classification solution and AI Search configuration used to predict product categories are trained and active. - [Confirm spend category similarity solutions](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/confirm-spend-category-solutions.md): Confirm that the similarity solution and retrieval configuration used to predict spend categories are trained and active. - [Activate Product and Spend category predictor skills](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/activate-category-predictor-skills.md): Activate the Product category predictor and Spend category predictor skills in AI Admin Hub. - [Confirm category prediction system properties](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/confirm-category-prediction-properties.md): Confirm the system properties that control category prediction, including the confidence score threshold. - [Enable Spend categorization agent in ServiceNow Otto panel](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/enable-agent-na-panel.md): Enable the Spend categorization agent so that users can run it from the ServiceNow Otto panel. - **[Confirm product category classification solutions](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/confirm-product-category-solutions.md)** Confirm that the classification solutions and AI Search configuration for product category prediction are trained and active before activating the Spend categorization agent. - **[Confirm spend category similarity solutions](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/confirm-spend-category-solutions.md)** Confirm that the machine learning similarity solutions and retrieval configuration used to predict spend categories are trained and active, so the Spend categorization agent can return spend category predictions. - **[Activate Product and Spend category predictor skills](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/activate-category-predictor-skills.md)** Activate the Product category predictor and Spend category predictor skills in AI Admin Hub to make both skills available to the Spend categorization agent. - **[Confirm category prediction system properties](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/confirm-category-prediction-properties.md)** Confirm the system properties that control product and spend category prediction, including the confidence score threshold and whether fallback logic is enabled. - **[Enable Spend categorization agent in ServiceNow Otto panel](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/enable-agent-na-panel.md)** Enable the Spend categorization agent in AI Agent Studio so users can run it from the ServiceNow Otto panel to validate and update product and spend categories on procurement records. **Parent Topic:**[Configure ServiceNow Otto for Sourcing and Procurement Operations \(SPO\)](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/configure-now-assist-for-spo.md) **Related topics** [Customize an AI skill in Sourcing and Procurement Operations]() [Skill inputs for ServiceNow Otto for Sourcing and Procurement Operations \(SPO\)]() [Application plugins for AI capabilities in SPO]()