**London**: The Hackett Group’s 2025 Key Issues Study reveals that 64% of procurement leaders foresee AI significantly changing their roles, despite a projected workload increase of 10% and only a 1% budget growth. Early adopters are already seeing productivity improvements as they embrace these technologies.
The Hackett Group, Inc., a consultancy firm focused on generative artificial intelligence (Gen AI), has released findings indicating significant transformations in procurement driven by AI technology. The company’s 2025 Key Issues Study reveals that 64% of procurement leaders believe AI will profoundly change their roles within the next five years. However, this anticipated evolution comes alongside a projected increase in workloads by 10% in 2025, while budgets are only expected to grow by 1%, resulting in a notable efficiency gap of 9%.
According to the findings, many procurement organizations are preparing to adapt to this shift; 42% plan to invest in new Gen AI technologies, and 33% aim to upgrade existing systems. Christopher Sawchuk, a principal at The Hackett Group, stated, “Procurement organizations must accelerate AI adoption to unlock new levels of efficiency and value creation.” He further emphasised that early adopters are already experiencing measurable productivity and cost improvements, while the true potential lies in scaling AI-driven transformations across various procurement functions.
In 2024, nearly half of procurement teams (49%) piloted Gen AI use cases, though only 4% reported large-scale implementation. Tools powered by AI have yielded productivity improvements of up to 10%, and around 47% of organizations are already utilising embedded AI features within existing procurement software, such as Coupa AI Classification and SAP Joule Copilot. Some organisations have reported productivity gains of 25% or more, demonstrating the benefits of AI in improving purchase order processing, spend analytics, and e-procurement.
As procurement leaders navigate this transition, priorities are shifting towards enhancing automation and digital transformation strategies. Many are focusing on overcoming challenges such as data quality and privacy, supplier instability, and existing technological complexities. To effectively integrate AI into procurement processes, The Hackett Group suggests that leaders should automate routine tasks, align operating models with user needs, execute practical use cases, and invest in upskilling teams to work efficiently with Gen AI.
With economic conditions becoming more stringent and higher expectations for cost-saving measures, procurement leaders who embrace AI advancements stand to gain a competitive advantage in efficiency and supplier management.
Source: Noah Wire Services
