- 64% of procurement leaders expect AI to transform their roles within five years.
- Projected 9% efficiency gap by 2025 due to a 10% increase in workload against only a 1% budget growth.
- 42% of procurement organizations plan to invest in new Gen AI technology.
The Hackett Group, Inc. HCKT, a leader in generative artificial intelligence (Gen AI) strategy and consultancy, has released its 2025 Key Issues Study. According to the study, 64% of procurement leaders anticipate that AI will significantly transform their roles within the next five years. This transformation is set to tackle the imminent 9% efficiency gap forecasted for 2025, where workloads are expected to grow by 10%, but budgets will only see a 1% increase.
Current AI adoption levels in procurement show promising trends, with 49% of procurement teams piloting Gen AI use cases, although only 4% have achieved large-scale deployment. Additionally, 47% of organizations are utilizing embedded AI within their current procurement software, leading to productivity, quality, and cost-saving improvements of up to 10%.
Investment in Gen AI technology is on the rise, with 42% of procurement organizations planning to invest in new Gen AI technologies, and 33% intending to upgrade existing ones. However, challenges such as data quality, privacy concerns, and complex technology integration remain significant hurdles.
To efficiently navigate these challenges and achieve AI-driven procurement transformation, The Hackett Group advises procurement leaders to orient their operating models towards end-user stakeholders, prioritize practical execution of procurement use cases, and upskill teams for effective collaboration with Gen AI tools.
As economic pressures intensify and expectations for cost savings rise, procurement leaders adopting AI are poised to gain a competitive edge in efficiency, cost control, and supplier management. For more detailed insights, the full 2025 CPO Agenda report is available for download.
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