Taking on a procurement leadership role in 2026 means stepping into a function that's changing fast. Technology, geopolitical shifts, and new stakeholder expectations are reshaping what procurement teams need to deliver.

At Suplari we’ve helped hundreds of Fortune 2000 procurement executives drive impactful change in their organization. Here's what you need to know about the major trends shaping procurement today and the key pitfalls to avoid.

Key procurement trends in brief

Here is a collection of fresh stats and recent trends you should keep in mind this year:

AI and automation

  • 94% of procurement executives use generative AI tools each week.1
  • 90% of procurement leaders are implementing or planning to implement AI agents over the next 12 months.2
  • While enthusiasm for generative AI is high, only 4% of procurement teams reported wide-scale deployment in 2024.3

Efficiency pressures

  • Procurement workloads will rise 10% in 2025 while budgets increase only 1%. This creates 9% an efficiency gap that must be closed through productivity gains.4
  • The top 25% of companies are growing their productivity by 8% each year.5
  • Some procurement teams are already capturing 15-30% efficiency improvements through AI automation.6

Digital transformation

  • For 41% of CPOs digital transformation is the strategy that is expected to deliver the most value in 2025.7
  • Companies aim to digitize 70% of procurement processes by 2027.8 
  • Despite the optimism, 74% of procurement leaders say their data isn't AI-ready.3

AI is transforming how procurement works

Artificial intelligence, especially generative AI and agentic AI is reshaping procurement operations. Unlike basic automation, AI agents built for procurement can set goals, create plans, and execute tasks with minimal human oversight. Think of AI that can analyse your procurement spend, make insights based on your category strategy and help you decide where you can add the most value.

The numbers tell the story. According to research by AI at Wharton, 94% of procurement executives already use generative AI tools each week. 

This push toward AI isn't optional. The Hackett Group's 2025 survey shows procurement workloads will rise 10% while budgets increase only 1%. This creates a 9% efficiency gap that only technology can close.

What AI means for your team

You'll see AI applications across the procurement value chain:

AI in procurement pitfalls to avoid

Data readiness is your biggest barrier. 74% of procurement leaders say their data isn't AI-ready. Poor data quality, siloed systems, and lack of spend visibility will undermine your AI initiatives. Work with your data teams to clean, structure, and govern procurement data before investing in AI tools.

Don't rely on algorithms without oversight. New AI procurement tools can automate various aspects of your team’s daily operations, but they won’t replace the skills and roles in your team. Set clear parameters for what AI can decide autonomously versus what needs human approval.

Your team needs new skills with the advancement of AI. The best AI platforms won't deliver results if your team can't use them effectively. Invest in training staff to interpret AI insights, manage AI tools, and focus on higher-value work that AI can't do.

Product update: how Suplari's AI Agents transform strategic procurement (video)

https://www.youtube.com/watch?v=fIysonaOi08

Digital transformation requires more than new technology

Most procurement teams already have digitalized transactional procurement through an ERP or procure-to-pay suite. But having digital tools isn't enough. You need an ecosystem of technologies working together for procurement analytics, strategic sourcing, and procurement process automation.

The integration challenge is real. 47% of business leaders cite integration complexity as a key barrier to achieving ROI from new technology. Siloed procurement systems prevent the insights you need to make better decisions.

What good digital procurement looks like

Leading organizations aim to digitize 70% of procurement processes by 2027. When done right, digital transformation delivers:

Deloitte's research shows that top-performing procurement teams deploy AI and machine learning at 3x the rate of others, with some having fully deployed AI solutions at 16x the rate of their peers.

Digital transformation pitfalls to avoid

Don't treat digital transformation as just a technology project. User adoption determines success. Involve end-users in design, choose intuitive solutions, and provide sufficient training. The easier your tools are to use, the faster you'll see results.

Fix your data foundation first. If your spend data is fragmented across legacy systems in different formats, investing in analytics tools will yield poor insights. Consolidate, clean, and classify your data before building advanced capabilities.

Procurement’s increasingly strategic role

Procurement’s role has expanded far beyond tactical buying. You're now expected to be a cross-functional business leader who delivers value through risk reduction, innovation, revenue enablement, and sustainability.

This strategic elevation means:

  • Earlier involvement in business planning. You'll help scope business needs and shape demand together with internal stakeholders
  • A seat at the executive table. Leadership expects your input on major decisions, especially post-COVID supply chain realizations
  • Cross-functional collaboration. You'll work closely with business unit leaders, finance, operations, and other stakeholders to jointly deliver results

Procurement’s evolving operating model

To play this strategic role, you'll need to transform how procurement operates:

  • Automate transactional tasks to free capacity for strategic work
  • Centralize key capabilities like sourcing, risk management, and data analytics
  • Use hybrid service models: outsourcing or automation for low-value activities
  • Move people from operational roles into analytical and collaborative positions

Pitfalls to avoid

  1. Align with corporate strategy. If your initiatives aren't clearly linked to company objectives, you'll be seen as disconnected. Translate procurement goals into business outcomes that matter to your CEO and board.
  2. Don't get stuck in operational details. It's easy to spend time managing daily RFQs and approvals, but you must delegate and elevate your focus to strategic matters. If executives see you mostly managing purchase orders, they won't view you as a strategic partner.
  3. Avoid the "police" mentality. While governance matters, a solely enforcement approach alienates stakeholders. Aim for a consultative approach that helps other departments achieve their goals within appropriate guardrails.
  4. Balance strategic initiatives with the basics. Cost management remains a core expectation. Deliver short-term wins in savings and efficiency to maintain credibility while advancing long-term strategic initiatives.

Your path forward

The role of a procurement executive today offers tremendous opportunity for those who harness digital technologies, manage risk proactively, champion sustainability, develop their teams, and partner effectively across the business. You have the chance to transform procurement from a cost center into a driver of competitive advantage.

The next 3-5 years are critical for procurement to adopt new technology like AI at scale and expand beyond cost to areas like resilience and sustainability. By focusing on these key trends and avoiding common pitfalls, you can build a procurement organization ready to meet future demands.

About Suplari

Suplari is a procurement intelligence solution that helps businesses modernize procurement operations using AI. Suplari provides actionable intelligence to manage suppliers, deliver savings and manage compliance beyond the limits of traditional spend analytics. Suplari’s unique AI data management foundation empowers enterprise businesses to modernize procurement operating models with reliable, AI-ready data.

To get a head start in your digitalization and AI strategy, book a meeting with Suplari.