Digital Transformation is Top of Mind for Procurement Managers in 2025

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Chief procurement officers (CPOs) are playing an increasingly bigger role in high-level decision-making within their companies, and this higher-profile status is driving procurement teams to seek out digital solutions to some of their most pressing challenges. 

In The 2025 Annual Procurement CPO Report, ProcureCon unveils some of the top digital transformation trends and issues that are claiming CPO mindshare right now and delves into some of the main issues that are keeping them up at night. Based on input from supply chain, procurement and risk management professionals, the survey revealed a “shift” in the strategic importance of CPOs within organizations. 

For example, the majority of respondents (53%) say CPOs are playing a more substantial role in high-level decision-making, up from 46% who said that last year. The survey also highlights the growing emphasis on technology and innovation in procurement, with 66% of respondents identifying the use of artificial intelligence (AI) in procurement processes and decision-making as a “high priority” for CPOs in the coming year.  

Key Report Findings 

Some of the other findings from the ProcureCon survey include:

• 53% of respondents say procurement becomes involved in the purchasing process once purchasing requirements and specification are defined.
  
  
• 66% say leveraging AI in procurement processes will be a high priority for the CPO in the next 12 months, while 55% say the same about improving speed-to-value and return on investment (ROI).
  
  
• 64% say their maverick spend key performance indicators (KPIs) have improved over the past 12 months, while 49% say the same about their purchase price variance KPIs.
  
  
• 82% have identified or prioritized potential use cases of AI for their procurement teams.
  
  
• 90% have considered or are already using AI agents to optimize procurement operations.
  
  
• 60% say their CPOs will be one of multiple leaders heading technology initiatives over the next 12 months.
  
  
• And, 65% are just “somewhat confident” in their ability to effectively leverage AI over the next 12 months.

Tasked with New Priorities

The modern procurement department faces numerous challenges in its quest to further digitize and automate its operations. It’s being tasked with new priorities relating to technology implementation, yet still has to oversee traditional procurement responsibilities (e.g., sourcing, supplier negotiation and identifying cost-saving opportunities). This balancing act isn’t always easy to achieve, but technology can be an effective enabler. 

According to the survey, leveraging AI in procurement processes and decision-making is a core priority for 66% of respondents for the next 12 months. “This strong focus on AI adoption reflects the growing recognition of its potential to transform procurement operations,” ProcureCon says in its report. “CPOs are likely seeing AI as a key enabler for improving efficiency, enhancing decision-making capabilities, and gaining a competitive edge in an increasingly complex supply chain environment.”

Other key priorities that are top of mind for CPOs and supply chain/risk managers: 

• 55% of respondents want to improve speed-to-value and ROI for their organizations.
  
  
• Delivering on ESG (environmental, social and governance) and sustainability goals was considered a high priority by 48% of respondents and a moderate priority by 46%. 
  
  
• Nearly all (93%) of survey respondents view reducing operational costs as either “high” or “moderate” priority.
   
• The survey also revealed that supplier quality rating (26%), supplier risk score (23%), and procurement ROI (22%) were the performance indicators that worsened the most over the past 12 months.

Identifying Useful Technologies

These and other survey results highlight the ongoing challenges in supplier management and performance measurement. “CPOs may need to reassess their supplier evaluation and risk management strategies, as well as how they measure and communicate procurement’s value to the organization,” says ProcureCon, which expects technology selection and implementation to continue being important topics moving forward. 

“Not only does the [procurement] function play a role in identifying useful technologies,” it adds, “but it can also provide insights into how key technologies can transform the business, as well as their procurement processes.”