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From AI adoption to AI adaption
A tipping point for Procurement Skills mismatch
More time for the Human Side of Procurement
AI: overhyped or underestimated?
The “Golden Age of the Silver Worker”
Executive Summary
ProcurementProcurement Procurement
Trends ReportTrends Report Trends Report
(^20252025)
Young Talent Still Hesitates to Enter Procurement
Procurement Takes the Lead Internally
Shift From Cost Cutting to Value Creation
Category Management Takes Center Stage
Geopolitical Instability Shapes Risk Management
Struggle to balance ESG Goals with Profit
INTRODUCTION
EMBRACING THE FUTURE OF PROCUREMENT
Winston Churchill once said, “To improve is
to change; to be perfect is to change
often.”
As we approach 2025, the world of
procurement is standing at the crossroads
of monumental shifts driven by
technology, workforce dynamics, and
global risks. The pace of these changes is
only accelerating, and procurement
professionals must embrace this
transformation with foresight and agility.
At Procurement Tactics, we’ve invested
hundreds of hours of research to highlight
the key trends and disruptions that will
shape the procurement landscape in 2025.
Our insights focus on how AI integration,
the evolving role of procurement
professionals, and sustainability
challenges will impact our industry.
The first theme, AI Transformation, will
explore how artificial intelligence is
becoming an integral part of procurement
processes, enhancing efficiency but also
raising concerns about data security and
privacy. (^) Marijn Overvest
Founder Procurement Tactics
The second theme, Shifts in Procurement Roles, will examine the evolving role of procurement professionals, particularly the challenges of attracting younger talent and the implications of an aging workforce. Finally, the third theme, Tactics for Procurement to Thrive, will focus on the strategies businesses should adopt to succeed, emphasizing risk management and sustainability.
These themes aren’t just passing trends— they’re powerful forces that will reshape how procurement operates in the years to come.
This report is designed to help procurement leaders thrive amidst these disruptions, with actionable insights on how to align their strategies with the evolving market landscape.
Wishing you success, adaptability, and growth in the year ahead.
TRENDS
TREND 1:
From AI adoption to AI adaption
TREND 2:
A tipping point for Procurement Skills mismatch
TREND 3:
More time for the Human Side of Procurement
TREND 4:
AI: overhyped or underestimated?
THEME 1
AI TRANSFORMATION IS THE NEW REALITY
Love it or hate it, AI is everywhere and continuously transforms many aspects of our lives, enhancing our productivity and efficiency. As major tech companies like Google, Meta, and Microsoft invest billions in the race to lead the AI revolution, almost every company has integrated some form of AI into their operations.
This transformation has led to a significant shift in many business processes, including procurement. This shift presents a challenge as companies strive for cost efficiency while procurement professionals face concerns about AI disruption and the complexities of navigating AI. As a result, we focus on three key procurement trends under this theme:
FROM AI ADOPTION TO AI ADAPTION
In the last two years, AI has been used by many procurement professionals for personal tasks, such as answering questions, drafting documents, and other activities aimed at making daily life easier.
AI EXPANDS BEYOND
PERSONAL USE IN 2025
DATA LEAK CONCERNS IN
PROCUREMENT
In 2025, however, AI will expand far beyond personal use and will become an integral part of procurement operations, thanks to the substantial benefits it offers. In fact, a Deloitte survey found that 94% of business executives believe AI will enhance their operations over the next five years.
A recent Forbes Advisor survey reveals that 73% of businesses are either using or planning to implement AI-powered chatbots for instant messaging.
Additionally, 61% are leveraging AI to optimize their emails, while 55% are using it to deliver personalized services like product recommendations.
These figures highlight the confidence many companies have in AI's ability to enhance their operations. However, as AI continues to integrate more deeply into business processes, by 2025 we might see rising concerns, especially around data security and potential leaks.
Procurement teams that have adopted AI without fully understanding how to manage it effectively may reconsider their strategies, pushing for stricter measures to safeguard sensitive information.
IMPACT: PROCUREMENT AI SOFTWARE
GROWTH SURGES, DATA LEAK CONCERNS
FOLLOW
LEGAL DISPUTES OVER AI USE
These privacy risks are already central to legal disputes, such as The New York Times'
lawsuit against OpenAI, which alleges that its articles were used without permission to
train AI models.
As a result, privacy and data security have become top priorities for many companies,
and there's growing support for stronger legislation. Businesses now see investment
in privacy safeguards as a necessity, with the potential benefits far outweighing the risks.
A RECENT CISCO REPORT HIGHLIGHTS THESE CONCERNS
25% (^) 63%
Companies have banned the use of generative AI tools altogether
Respondents restricted the types of data employees could input into these systems.
61%
Limited the AI tools that could be used
ACTION: IMPLEMENTING AI WHILE
ENSURING DATA PRIVACY
To ensure a seamless adaption rate of AI in procurement while addressing concerns over data leakage, here are five key steps to help integrate AI while keeping your data secure.
STEP 1: ENCOURAGE SAFE AI
EXPERIMENTATION IN
PROCUREMENT
STEP 2: IMPLEMENT
COMPREHENSIVE AI TRAINING FOR
PROCUREMENT PROFESSIONALS
Companies must build a culture where procurement teams feel empowered to explore AI-driven solutions, all while ensuring strict compliance with data privacy regulations.
Procurement teams must be equipped with the skills and knowledge to use AI effectively. This training should focus on data security, responsible AI usage, and understanding potential risks.
Additionally, businesses should also listen to employees' concerns and provide the support, guidance, and resources they need to adapt successfully to AI.
A great example is Salesforce Inc., which has developed an AI Acceptable Use Policy (AI AUP) to uphold ethical standards and protect its customers. Their AI AUP prohibits AI use for activities such as making legally binding decisions, political campaigns, and other harmful or deceptive practices. By regularly updating its policy, Salesforce ensures customers are well-informed about the guidelines and consequences of noncompliance, enabling safer and more responsible AI usage.
STEP 3: DEVELOP A CLEAR AI
STRATEGY ALIGNED WITH
PROCUREMENT AND DATA
PRIVACY GOALS
Businesses should ensure that their AI strategy aligns with procurement objectives while addressing data privacy concerns. This includes creating policies that promote ethical AI use, with a focus on accountability, transparency, and responsible interactions.
Does your business
have a policy on how
to use AI in
Procurement?
A TIPPING POINT FOR PROCUREMENT
SKILLS MISMATCH
As AI has been integrated into almost every part of a business, it's now time for companies to start with adaptation. A recent report from Glassdoor shows that the percentage of professionals using ChatGPT or similar AI tools in the workplace has more than doubled in a year, rising from 27% when the tool first launched to 62% today. This rapid adoption highlights the increasing reliance on AI to boost efficiency and productivity across industries.
SLOW AI ADOPTION IN
PROCUREMENT
DIGITALIZATION'S IMPACT ON
PROCUREMENT
Our survey revealed that out of 804 professionals, only a significant portion is using ChatGPT in their daily workflows, with 198 using it every working day.
While businesses have made significant progress in adopting AI, procurement professionals are still exploring how to fully leverage tools like ChatGPT to boost productivity and efficiency. Additionally, procurement professionals are taking longer to adapt to these new technologies, particularly AI.
A report by Gartner highlights the need for Chief Procurement Officers (CPOs) to prepare for the significant impact digitalization will have on procurement operations and staffing.
The report also indicates that AI-based solutions are increasingly capable of handling tasks traditionally managed by sourcing professionals.
EQUIP PROCUREMENT
PROFESSIONALS WITH TECH SKILLS
Organizations must prioritize equipping procurement professionals with the necessary technological skills to effectively manage and utilize these advanced technologies.
This is a crucial moment for businesses to address the evolving needs of procurement professionals and ensure they have the skills required to navigate the growing digital landscape in procurement operations.
IMPACT: PROCUREMENT PROFESSIONALS
STRUGGLING TO ADOPT AI
AI ADOPTION IN
SUPPLY CHAIN BY 2025
68%
According to Statista, more than half of the global supply chain industry is expected to adopt AI by 2025. This makes addressing the issue of skill mismatches even more urgent.
A study by Gartner warns that
procurement organizations that fail
to adopt AI will face a “cost and agility
deficit.” Automating repetitive tasks
frees up procurement teams to focus
on value-added activities that lead to
better business outcomes.
This shift also aggravates job security
concerns among procurement
professionals. As companies
continue to automate and integrate
AI tools without investing in
upskilling their existing teams, they
may be forced to replace employees
who cannot adapt.
Businesses might find it more cost-effective
to hire new talent rather than invest in
improving the skills of current staff ,
seeking a quicker return on investment.
MORE TIME FOR THE HUMAN SIDE OF
PROCUREMENT
Gone are the days when most aspects of the procurement process relied on manual labor, thanks to the surge of AI tools in business.
AI AUTOMATION IN
PROCUREMENT
BALANCING AUTOMATION WITH
HUMAN CONNECTIONS
Therefore, procurement managers now have more time to focus on negotiation and supplier relationship management (SRM). The remaining five steps in the procurement process that we follow, which tend to be repetitive and labor- intensive, are suitable for automation through AI and other advanced technologies.
Furthermore, AI can speed up tasks such as Request for Information (RFI), Request for Quotation (RFQ), and contract management, enabling procurement teams to focus on more strategic initiatives.
While Generative AI can also assist with negotiation by role-playing as the other party, and procurement software can streamline supplier communications online, human connections will remain critical in procurement, particularly in building trust and innovation in supplier relationships. These areas involve emotions, empathy, cultural awareness, and human judgment, which AI cannot and will never replace.
BALANCING AUTOMATION WITH
HUMAN CONNECTIONS
As we approach 2025, these two areas will play an even more vital role in combating supply chain disruptions. With routine tasks automated, procurement managers must prioritize improving negotiation and SRM to stay competitive and resilient.
IMPACT: PROCESSES REMAINING HUMAN
IN PROCUREMENT AUTOMATION
Procurement has long been a relationship-driven activity. While certain processes can be automated, building long-term opportunities with suppliers relies on establishing emotional connections. This is especially true for negotiation, which requires understanding human nuances, gestures, and cultural differences to achieve successful outcomes.
AI’S ROLE AND LIMITATIONS IN
PROCUREMENT
AI is undeniably transforming the way we work, acting as a game-changer for many businesses and helping them thrive. However, as we continue to embrace this wave of AI, we must acknowledge its downsides. The more we rely on AI tools, the less we cultivate meaningful connections that can further enhance business success. While AI can accomplish a great deal, it cannot replicate the essence of real relationships. It lacks empathy, cannot read social cues, and is incapable of building trust—qualities that only humans possess.
Milan Emadi, founder and CEO of DreamSofa, emphasizes the importance of strong relationships throughout the supply chain. He notes that disruptions can happen at any moment, which is why focusing on building these relationships is crucial. Each component of the supply chain must work in harmony for the system to function effectively.
Moreover, negotiation and supplier relationship management (SRM) are vital for strengthening the supply chain through meaningful supplier partnerships. Since AI cannot fulfill these roles, procurement managers must prioritize these areas to keep human connections intact within the procurement process.
The Vital Role of Negotiation and Supplier Relationship Management
AI: OVERHYPED OR UNDERESTIMATED?
The debate over whether AI is just hype or genuinely undervalued will continue into 2025. Many businesses are scrutinizing the return on investment (ROI) from their AI initiatives. You may have questioned AI’s benefits or doubted its true potential to drive value for your organization and your procurement team. After all, who hasn’t experienced uncertainty about the effectiveness of such investments?
In the first release of ChatGPT in 2022, it struggled with basic tasks like solving math problems and often provided misleading or incorrect information—a major concern for those relying on it for accurate content generation.
SKEPTICISM AROUND AI'S ROI
While many businesses have successfully integrated AI tools to boost productivity by streamlining processes and handling repetitive tasks, skepticism remains regarding its ROI. Some even suggest that the AI bubble is on the verge of bursting. The real question is whether companies will persist in integrating new AI tools into their procurement processes to enhance business operations, despite scrutiny over ROI. As organizations evaluate the effectiveness of their AI investments, the focus will be on determining how these tools can truly optimize their procurement functions moving forward.
IMPACT: AI HYPE IS REACHING ITS
BREAKING POINT
BREAKING POINT OF AI HYPE
It's no surprise that AI adoption is already widespread. One of the latest evolutions, Generative AI (GenAI), popularized by ChatGPT, has been in the spotlight since its release.
Why? Because, like other GenAI tools, it can generate new content such as numerical data, images, text, audio, or video based on the data it's trained on.
This year, according to EY, around 40% of supply chain organizations are investing in GenAI, focusing on knowledge management applications.
However, some large companies have a more cautious view. Goldman Sachs, for example, recently published a report titled "Gen AI: Too Much Spend, Too Little Benefit?" after introducing generative AI tools across its workforce. The report reflects concerns about high costs and immediate return on investment.
AI ADOPTION LEVELS IN
PROCUREMENT
A report by Zycus, in partnership with Procurement Tactics, found that 69.8% of organizations have yet to adopt dedicated AI software. However, user engagement levels suggest a positive outlook on AI's transformative potential in procurement.
That said, AI, including generative AI products like OpenAI's ChatGPT or Google's AI, isn't going away anytime soon. But for now, AI companies are burning through cash without delivering a product that’s easily monetizable and error-free, fueling concerns for many businesses about whether to fully embrace AI or not.
THEME 2
SHIFTS IN PROCUREMENT ROLES
As the procurement workforce increasingly spans multiple generations—from Baby Boomers to Gen Z—the roles within procurement are evolving, revealing diverse expectations and contributions.
Each generation brings unique strengths and perspectives, which organizations must harness to ensure procurement processes remain agile and informed. By integrating the knowledge and insights from these various age groups, companies can better navigate shifting consumer demands.
This generational diversity in procurement leads to three key trends we will discuss under this theme.
TRENDS
TREND 5:
The “Golden Age of the Silver Worker”
TREND 6:
Young Talent Still Hesitates to Enter Procurement
TREND 7:
Procurement Takes the Lead Internally
THE “GOLDEN AGE OF THE SILVER WORKER”
Ever wonder why so many people of retirement age are still working in procurement? This is largely attributed to the ongoing financial instability affecting many countries today. In the U.S., for example, only 10% of Americans between the ages of 62 and 70 are both retired and financially secure.
The majority of older Americans aråe either retired but living below the standard of living they had while working or continuing to work because they simply can’t afford to stop. This issue is made worse by the reluctance of younger generations to join the workforce, a topic we’ll explore in the next trend, along with declining birth rates in developed countries like Japan and South Korea.
MAINTAINING THE WORKFORCE
EXTENDED PROFESSIONAL LIFE
These challenges are impacting businesses as a whole and are also making it harder for companies to find and keep experienced professionals to manage procurement smoothly.
Only 10% of
Americans between
the ages of 62 and 70
are retired and
financially secure.
