With 84% of procurement leaders convinced a recession has already arrived or is imminent, according to Fairmarkit’s 2025 AI in Procurement Index, they’re racing to adopt AI to outpace suppliers and control costs. But concerns over data integrity, security, and cultural resistance are slowing the transition.
Suppliers Gain Edge as AI Use Surges
Procurement leaders face a growing gap in digital readiness as suppliers embrace AI to gain negotiating leverage. According to the 2025 AI in Procurement Index by Fairmarkit, a remarkable 94% of procurement leaders report that their suppliers are already using AI to drive negotiations. This rapid adoption is shifting the balance of power in the buyer-supplier relationship.
“Procurement isn’t just behind the curve—it’s being outmaneuvered by the very vendors they’re negotiating with,” said Kevin Frechette, Fairmarkit’s CEO, in an official statement. His warning highlights the emerging gap in digital maturity, as suppliers capitalize on AI’s ability to analyze market conditions, optimize bids, and respond faster to changing demand.
Procurement teams, meanwhile, find themselves on the back foot. Concerns over incomplete or inaccurate AI-generated data plague 43% of leaders, while 39% fear AI could lock them into deals that don’t keep pace with rapidly shifting markets. These worries often trace back to haphazard AI tool usage, where teams piece together unvetted solutions rather than deploying purpose-built AI platforms designed for procurement.
AI Mandates Collide with Cultural Hurdles
As per the report, 91% of procurement leaders report an executive mandate to adopt AI, proof that leadership sees the urgency. But the path from mandate to measurable results is far from smooth. Data privacy and security worries weigh heavily on 64% of leaders, while 57% battle cultural resistance to change. Governance and internal policies, cited by over half of respondents, add another layer of friction.
Implementation costs remain a formidable barrier, with 56% highlighting budget constraints. Even as leaders push for more AI investment, 52% admit their teams lack the know-how to use generative AI tools effectively. Rather than fearing AI-driven job cuts, leaders anticipate the opposite: 44% expect their teams to grow, and only 5% foresee reductions. That’s fueling demand for fresh talent and upskilling, with data interpretation, strategic decision-making, and cross-functional collaboration topping the most coveted skills.
Navigating AI’s Role in Procurement
The findings from Fairmarkit’s 2025 AI in Procurement Index point to a shift in procurement dynamics. With 84% of leaders expecting a recession by year-end, procurement teams must improve their digital readiness to keep pace with suppliers who are already using AI in negotiations.
Yet, technology alone is not the answer. Procurement teams need to address concerns around data quality and security while tackling internal resistance and governance gaps that can slow progress. These issues matter as much as the technology itself.
