A new report from Ivalua highlights how procurement is shifting beyond cost control to embrace AI-driven decision-making, strategic supplier management, and resilience-building amid ongoing economic and geopolitical uncertainty.
Procurement is undergoing a fundamental transformation, moving from a traditional cost-cutting function to a strategic driver of business resilience and value creation. A recent report from Ivalua, Next Level Procurement: Embracing GenAI and Whatever Comes Next, underscores how procurement leaders are navigating global instability, supply chain constraints, and regulatory uncertainty by leveraging automation, AI, and strategic supplier collaboration.
The survey of 137 procurement leaders reveals that adaptability has become a core competency for procurement teams. While cost reduction remains a priority, procurement’s role is expanding to include risk management, sustainability, and supplier innovation. As global disruptions persist, organizations are looking to procurement functions to drive agility and long-term value creation.
Procurement’s Expanding Strategic Role
As businesses confront challenges ranging from supply chain volatility to shifting trade policies, procurement leaders are expected to play a more central role in strategic decision-making. The report highlights that 77 percent of respondents expect procurement to focus more on value creation in 2025, moving beyond traditional cost-saving measures.
This shift is reflected in evolving priorities. More than half of procurement leaders anticipate a stronger emphasis on sustainability and ethical sourcing, aligning procurement with corporate environmental, social, and governance (ESG) goals. Additionally, supplier collaboration is emerging as a key focus, with 50 percent of professionals expecting to spend more time working directly with suppliers to improve transparency, risk management, and innovation.
AI and Automation Reshape Procurement Operations
The adoption of automation and AI is rapidly transforming procurement processes, freeing teams from tactical tasks and enabling a sharper focus on strategic initiatives. Over half of procurement leaders expect significant automation of operational processes, with 63 percent citing generative AI as a major driver of efficiency and productivity.
AI is already making an impact in procurement functions, with 45 percent of organizations actively deploying generative AI in areas such as spend analysis, sourcing, and contract management. This technology is not just improving efficiency but also enhancing data-driven decision-making, with 46 percent of procurement leaders expecting AI-driven insights to play a critical role in shaping their procurement strategies.
Resilience in an Uncertain Global Landscape
Geopolitical shifts and economic uncertainties are reinforcing the need for resilient procurement strategies. The report highlights that 61 percent of respondents anticipate global conflicts to expand and further impact supply chains. More than half predict that US tariffs will force companies to reassess supplier strategies, while 81 percent believe that another “black swan” event—a significant, unforeseen disruption—is likely.
With uncertainty becoming a constant, procurement leaders are focused on supplier diversification, nearshoring, and AI-driven risk management to mitigate potential disruptions. Organizations that invest in technology-driven procurement agility will be best positioned to manage future shocks while maintaining cost efficiency and supply continuity.
A More Agile and Intelligent Procurement Function
The evolution of procurement is no longer optional—it is a business imperative. As economic and geopolitical challenges persist, companies that embrace AI-driven insights, supplier collaboration, and automated processes will be better equipped to navigate an increasingly complex landscape.
Procurement teams that successfully shift from transactional oversight to strategic value creation will play a central role in defining competitive advantage. Those that continue to rely on legacy approaches may find themselves unable to keep pace with the speed of change. The organizations that adapt will not only withstand global uncertainty but thrive within it, positioning procurement as a cornerstone of business resilience and innovation.
