Did you miss the recent webinar “CPO Pressure: Hitting Year-end Targets While Responding to Rising Risk, Tariffs, & AI,” featuring Andrew Bartolini, founder and chief research officer for Ardent Partners; Emily Rakowski, chief marketing officer for ORO Labs; and Scott Whelan, senior director, source-to-pay for Pfizer?
The webcast brought forward insights from ORO Labs’ 2025 State of Enterprise Procurement Agility Report, unpacking how enterprise procurement teams are adapting, where they’re falling short, and what leading organizations are doing differently. Listen as experts break down what’s driving today’s procurement pressures, from tariff-driven churn to bloated tech stacks — and examine how AI is being adopted faster than ever, even as trust lags.
Today is part one of a two-part article series that brings forth the key points from the webcast, with a link to the event.
The State of Procurement Agility: Navigating Tariffs, Technology, and the Rise of AI
Procurement agility has emerged as one of the most important differentiators for global enterprises facing volatility, shifting regulations, and constant technological disruption. ORO Labs’ 2025 State of Enterprise Procurement Agility Report global study of 227 procurement executives revealed a sector under pressure from every angle — economic, geopolitical, and digital. The majority of respondents represented large organizations with over $1 billion in annual revenue, providing a comprehensive view of how procurement leaders are responding to today’s uncertainty.
Tariffs, Regulations, and the Cost of Constant Change
At the top of the list of concerns are tariffs and regulatory unpredictability. When tariffs were reintroduced and adjusted earlier in the year, organizations were forced to react quickly without consistent guidance or stability. For many procurement teams, this has become a new normal. Tariffs change without warning, and rates fluctuate frequently — one CPO reported receiving 24 separate tariff rate notices in a single year. This level of volatility has forced companies like Pfizer to build internal tools just to track changes in real time. The constant shifts have turned tariff management into a full-time job for procurement professionals, who must simultaneously coordinate with suppliers, finance leaders, and executive teams to manage cost impacts and maintain compliance.
Procurement leaders have long been accustomed to handling complexity, but the current environment has introduced a new level of instability. Inflation remains persistent, geopolitical tensions continue to reshape global trade, and cyber and supplier risks have become ever-present concerns. Compounding all of this is the rapid introduction of new technologies, including artificial intelligence, that are transforming how organizations operate and make decisions. As one executive noted, “It feels like everything is being shaken up all at once.”
Rethinking Processes for Agility and Speed
The research revealed that most companies are actively rethinking their procurement processes for better agility, reducing layers of approval, improving collaboration with business stakeholders, and accelerating response times. When asked how long it would take to find and onboard an alternative supplier, only 16% of respondents said they could do so in under a week. The majority cited timelines of three weeks or longer, underscoring that supply diversification is not an overnight fix. A third of respondents said the potential loss of a supplier was among their top concerns, especially given the uneven distribution of supply chains across high-tariff regions.
To mitigate risk, many organizations are pursuing dual strategies, with some consolidating suppliers to gain control, while others are expanding supplier bases to enhance resilience. Interestingly, companies are divided on how to handle supplier vetting in this environment. Some are increasing their tolerance for risk to move faster, while others are tightening risk assessments to preserve quality and compliance. Regardless of approach, the consensus is clear: a deeper understanding of suppliers, their production capabilities, and their ability to shift operations to lower-tariff regions has become mission-critical. Mature organizations now view supplier management as a primary lever for agility and competitive advantage.
This shift also requires a smarter approach to risk management. Pfizer, for instance, has traditionally applied broad, cautious risk assessments across all spend categories. However, with better data and clearer visibility into what is being purchased, the company is refining its model. By categorizing spend more precisely, procurement can now apply the right risk domains to the right purchases, avoiding unnecessary friction while still maintaining strong oversight. This evolution represents a broader trend — organizations are using data and automation to tailor governance instead of applying one-size-fits-all controls.
Technology’s Double-Edged Sword: Integration vs. Fragmentation
Technology, however, remains both an enabler and a barrier. When asked about the biggest obstacles to procurement agility, the top answer was data quality. Many organizations continue to struggle with fragmented systems, siloed information, and legacy technology stacks that resist integration. For global enterprises that have grown through mergers and acquisitions, the challenge is compounded by multiple ERPs, supplier databases, and contract management systems. As one executive observed, “Just because you went suite doesn’t mean the suite is integrated.”
Rather than attempting to rip and replace existing systems, forward-looking companies are investing in orchestration layers that connect and normalize disparate data sources. The goal is not perfect data but usable data. Platforms like ORO are helping procurement teams take the best of what they have, clean it, and make it actionable through workflow automation and AI. This orchestration approach allows procurement to simplify complexity and operate more efficiently without being hindered by rigid IT processes. Increasingly, procurement teams are adopting low-code and no-code tools that empower them to modify workflows and business rules without waiting weeks for IT intervention. This evolution is changing the relationship between procurement and IT — from dependence to partnership — and enabling faster innovation.
AI Moves to the Center of Procurement Strategy
At the center of this transformation is artificial intelligence. Just a year ago, AI felt experimental in procurement; today, it is central to many organizations’ strategies. Half of surveyed executives say they understand how AI works and what it can do, while the other half admit to only a basic understanding. Yet despite the enthusiasm, only 39% of procurement teams have received formal AI training. Without this foundation, it becomes difficult to apply AI responsibly or to trust its outcomes fully. As one AI expert noted, today’s large language models possess the “intellectual capacity of a 19-year-old college freshman” — they perform tasks well but lack wisdom and contextual understanding. That means AI should augment human judgment, not replace it.
The most common AI applications in procurement today are pragmatic. Teams are using AI to automate routine tasks, analyze spend and supplier data, assess supplier risk, and manage contracts. Contract review and SOW generation are particularly promising areas, where AI can extract key terms or draft templates based on prior agreements, reducing manual effort. AI is also being deployed to identify cost-saving opportunities by comparing new supplier quotes against historical benchmarks. Rather than replacing strategic sourcing professionals, these systems act as intelligent assistants that surface insights and recommendations in real time.
Procurement’s journey toward agility and AI maturity is still unfolding, but the direction is clear. The next frontier is autonomous procurement, where AI-led systems handle tactical activities with minimal human oversight, allowing professionals to focus on strategy, innovation, and supplier collaboration. Organizations are beginning this journey in low-risk areas such as tail spend before scaling to more strategic categories.
Ultimately, agility in procurement is no longer defined by speed alone. It is about resilience, adaptability, and the intelligent use of data and technology to navigate constant change. The combination of orchestration platforms, smarter risk models, and AI-powered insights is helping procurement leaders move from reactive to proactive — ready not just to withstand disruption, but to thrive in it.
