**London**: A survey reveals that 90% of procurement leaders are implementing AI tools to enhance efficiency. The 2025 ProcureCon Chief Procurement Officer Report highlights a shift in focus towards advanced analytics, aiming to improve decision-making and drive profitability amidst evolving market challenges.
A recent survey conducted by Icertis, in collaboration with ProcureCon Insights, has highlighted a significant trend among procurement leaders, revealing that 90 percent are considering or have begun implementing AI agents to enhance their operational efficiency in the near future. The findings, published in the 2025 ProcureCon Chief Procurement Officer Report, demonstrate a shift in focus for Chief Procurement Officers (CPOs), who are increasingly looking to maximise value beyond simple cost reductions.
The report indicates that almost 40 percent of CPOs aim to leverage advanced analytics and AI to provide actionable insights for decision-makers. This move towards transformational technologies is reshaping the role of procurement within organisations, enabling teams to have a more direct impact on enterprise profitability and commercial outcomes through effective contract management.
Bernadette Bulacan, Chief Evangelist at Icertis, noted, “Global commerce is comprised of relationships between customers and suppliers, each embodied in a contract that starts at the negotiation table in procurement.” She elaborated that AI agents hold the potential to significantly improve procurement’s decision-making capabilities, ultimately enhancing the commercial outcomes for all involved parties.
As they prepare for a turbulent 2025, procurement leaders are gearing up to tackle multiple challenges, including reducing risk through the diversification of their supplier base—cited by 40 percent of CPOs—as well as managing supply chain disruptions (36 percent) and rising costs due to inflation (35 percent). The necessity for robust supplier collaboration becomes increasingly apparent, aiming to ensure continuity and resilience in supply chains amidst the shifting geopolitical landscape.
Notably, despite advancements in cost-cutting strategies, the return on investment (ROI) from procurement remains a pressing concern. While 64 percent of those surveyed reported improvements in maverick spending practices, a significant 62 percent stated that the ROI from procurement efforts has either stagnated or declined in the past year. This underscores the urgent requirement for more sophisticated tools, such as AI, to optimise contract terms and automate revenue-related elements in agreements.
The report also pointed out that priorities towards AI implementation in procurement processes now supersede traditional goals centred on environmental, social, and governance (ESG) considerations. A sizeable 66 percent of respondents identified leveraging AI as their foremost priority for 2025, highlighting the eagerness to improve speed-to-value and ROI over other objectives.
However, there are barriers to the widespread adoption of AI within procurement, including integration issues (cited by 88 percent) and concerns regarding the quality of data (75 percent), which hinder confidence in AI’s potential benefits. Chris Rand, Head of Research at ProcureCon Insights, remarked on the evolving landscape, noting, “We’re witnessing a substantial shift in the procurement function from reactive to proactive as CPOs look to anticipate challenges and build resilience for their businesses.”
The findings are based on responses from supply chain management, procurement, and risk management leaders across the U.S. and Canada, with a significant representation from large companies managing over $1 billion in expenditure.
As procurement strategies evolve alongside technological advancements, the dynamics of supplier relationships are expected to change dramatically, potentially redefining the partnership roles between customers and suppliers in the global market.
Source: Noah Wire Services
