Did you miss Ardent Partners’ recent webinar, Procurement 2025: BIG Trends and Predictions, that delivered a series of insightful predictions designed to help procurement teams in all industries and regions focus on and prepare for what is important while remaining proactive and agile?
The session featured Ardent Partners’ Founder and Chief Research Officer, Andrew Bartolini, and Senior Vice President of Research, Christopher Dwyer, as well as experts from Ivalua and Beeline, as they explored trends and predictions that procurement teams in all sectors and regions can leverage to better prepare and strategize for what lies ahead in 2025.
In this two-part series, we provide some of the webcast highlights and this link to the full event.
As we move through 2025, procurement is undergoing significant transformation, driven by emerging technologies, evolving business priorities, and global economic shifts. What follows explores key trends shaping the procurement landscape and provides predictions to help chief procurement officers (CPOs) and procurement teams prepare for the year ahead. Based on extensive market research and industry conversations, these insights are designed to foster strategic thinking and proactive decision-making.
The Rise of AI in Procurement
Artificial intelligence (AI) is now an integral part of procurement, with adoption rates reaching unprecedented levels. In 2024, research showed that 76% of procurement organizations expected to be using AI capabilities by the end of the year. This rapid adoption has been facilitated by AI features embedded within existing solutions, eliminating the need for separate deployments or substantial investments.
Unlike eProcurement, which has taken nearly three decades to reach a 60% adoption rate, AI’s accessibility and continuous integration into procurement technology stacks make it a game-changer. AI is now the starting point for new technology deployments, and its impact on automation, decision-making, and process efficiency is accelerating at a remarkable pace. Organizations that fail to integrate AI risk falling behind in terms of efficiency, cost savings, and strategic execution.
Digital Transformation as a Top CPO Priority
Digital transformation remains a central focus for CPOs, having evolved from basic automation and process reengineering to comprehensive technology-driven strategies. Procurement leaders recognize that continuous improvement hinges on a well-implemented and widely adopted technology stack. AI has further amplified the importance of digital transformation by automating complex tasks and providing personalized insights for both procurement teams and occasional system users such as approvers and suppliers.
In 2025, AI will continue to expand its role in procurement, gradually taking over larger portions of the workflow. However, organizations should approach AI adoption through incremental, diversified investments rather than committing to singular, high-risk implementations. The current phase of AI integration is marked by trial and error, making it essential for companies to experiment, learn, and iterate quickly to maximize value.
Solution Providers Double Down on AI
Technology providers are fully embracing AI, incorporating advanced capabilities into their solutions to meet the growing demand from procurement organizations. Companies planning technology RFPs (Request for Proposals) must now include a dedicated AI evaluation section, assessing how providers apply AI to procurement challenges, the use cases they prioritize, and the tangible benefits they offer. Organizations that leverage AI-driven procurement solutions will gain a competitive edge in terms of efficiency, risk management, and strategic decision-making.
Cost Savings Take Center Stage Again
After years of shifting priorities, cost savings have reclaimed their position as a top concern for procurement teams. Economic pressures — including inflation, supply chain disruptions, and increased efficiency demands — are driving organizations to prioritize cost reduction initiatives. This renewed focus aligns with broader corporate strategies, particularly those influenced by the “Year of Efficiency” movement seen in major tech companies.
CFOs are once again emphasizing procurement-driven savings, and in 2024, 74% of organizations identified cost reduction as a primary objective. This trend is expected to persist in 2025, as companies seek to counter rising operational costs while maintaining profitability and competitive pricing.
Geopolitical Instability and Its Procurement Implications
Global geopolitical tensions continue to create challenges for procurement teams. Trade policies, supply chain disruptions, and unpredictable tariff implementations add layers of complexity to sourcing strategies. The reversal of long-standing free trade trends has led to economic battles over trade and technology, exemplified by the ongoing tensions between the U.S. and China.
For procurement leaders, this means increased risks related to payment disruptions, compliance requirements, currency fluctuations, and political instability. Organizations must adopt agile sourcing strategies, strengthen supplier relationships, and remain prepared for sudden shifts in trade policies and market conditions.
Growing Investment in Supply Risk Management
The volatility of global markets has heightened the need for robust supply risk management strategies. Procurement teams must navigate uncertainties stemming from policy changes, cyber threats, environmental regulations, and evolving invoicing requirements. Notably, 80% of cyberattacks are believed to originate through third-party suppliers, underscoring the importance of securing supply chains against digital threats.
AI-powered predictive analytics are playing a critical role in mitigating supply risks by providing early warning signals for potential disruptions. Over the next year, organizations will increasingly rely on AI-driven risk assessment tools to enhance supply chain resilience and maintain business continuity.
Supply Chain Resilience Becomes a Strategic Imperative
The COVID-19 pandemic exposed vulnerabilities in global supply chains, prompting companies to prioritize resilience and adaptability. In response, organizations are diversifying suppliers, investing in stronger supplier relationships, and adopting technologies that improve collaboration and real-time visibility. AI is further enhancing supply chain resilience by enabling predictive analytics and automation, reducing the impact of disruptions.
Shifting Focus from Expanding Spend Management to Enhancing Effectiveness
Historically, procurement organizations sought to increase the percentage of company spending under their management. However, data spanning over a decade indicates that this metric has remained stagnant, with little progress made in expanding managed spend. Instead, procurement teams are now concentrating on optimizing and improving the spend they already oversee.
Rather than chasing additional spend categories, organizations are refining their procurement strategies, enhancing contract management, and leveraging data analytics to extract greater value from existing supplier relationships. This shift underscores the importance of strategic procurement over simply expanding influence.
Increased Emphasis on Supplier Collaboration
Companies are moving beyond transactional supplier relationships in favor of deeper, more strategic collaborations. Strong supplier partnerships yield multiple benefits, including enhanced transparency, early risk detection, faster crisis response, and joint cost-saving initiatives.
By fostering stronger supplier engagement, organizations can unlock competitive pricing, improve product quality, and drive operational efficiencies. As procurement shifts toward value-driven outcomes, investment in supplier collaboration is expected to increase significantly.
Enhancing the Procurement Customer Experience
As the role of procurement expands, teams are engaging with a broader range of stakeholders and managing diverse project types. Effective procurement organizations are focusing on improving stakeholder interactions through process optimization, intake management, and procurement process orchestration.
Understanding internal customers’ needs enables procurement teams to provide more efficient, responsive, and value-driven services. This customer-centric approach ensures that procurement remains a strategic partner within the organization rather than a bureaucratic bottleneck.
Procurement in 2025 Defined By …
Procurement in 2025 will be defined by rapid AI adoption, intensified cost-saving efforts, heightened geopolitical risks, and a greater focus on supply chain resilience and supplier collaboration. Digital transformation remains a top priority, with AI playing a pivotal role in shaping procurement strategies. Organizations that embrace these trends and invest in agile, technology-driven procurement processes will be better positioned to navigate uncertainty and drive sustainable business success.
As we progress through this transformative year, procurement leaders must remain adaptable, continuously refining their strategies to stay ahead of emerging challenges and opportunities.
Part Two of this series will explore the many ways AI is predicted to impact procurement as well as the potential effects of market uncertainty in a tariff-driven world.
