Gartner® Report: Predicts 2025 - Procurement Addresses Data Challenges and Embraces Rapid Change

Procurement’s operating context is changing rapidly. This research helps chief procurement officers understand evolving trends in data and analytics, AI, staffing models and supplier risk management to effectively plan for rapid evolution in procurement.

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"68% of CPOs are prioritizing investment in AI and GenAI as a priority in 2025, reflecting the significant and immediate interest in leveraging technological efficiencies"

 

CPOs increasingly recognize the transformative potential of AI, with 72% reporting it as a top technology priority by 2030. This prioritization will create a positive feedback loop of development, in which procurement’s investments in AI encourage technology providers to continue advancing their AI solutions.

Gartner recommends:

1. Update procurement competency models: Procurement staff will need to acquire such strategic competencies as insight generation, communication and influence to be effective. Staff will be expected to drive strategy throughout the organization, while AI takes over the tactical execution realm.

2. Increase dollar and risk thresholds: Smaller procurement teams will need to be deployed to manage only the most strategic buying activities and/or advise business stakeholders (or AI agents) on how to do their own sourcing. Machine buyers will take over a significant portion of traditional sourcing and procurement activities.

Gartner Predicts 2025: Procurement Addresses Data Challenges and Embraces Rapid Change, By: Ryan Polk, Kaitlynn Sommers, Meghan O'Doherty, Lynne Phelan, Cheryl Van Dyke, Andrea Greenwald, Chaithanya Paradarami, Mel Mohamednur, Micky Keck. 8 January 2025 

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Coupled with high levels of process automation, AI agents will fundamentally transform most activities in source-to-pay technology, such as supplier onboarding and sourcing.