Ardent Partners’ annual trends and predictions for Procurement in 2025 is here!
Covering everything from the rise of AI to political power plays and the ever-present need for cost savings and supply chain resilience, we have rounded up the key points of this year’s Ardent Partners report…
…Or download a handy ‘cheat sheet’ (PDF format)
🚀 AI adoption is fast and furious, with 76% of procurement teams expected to be now using AI. Adoption is the new default as AI is embedded in current ProcureTech systems, making the potential opportunities sky-high
🌈 Digital transformation remains a top CPO priority, with AI acting as a catalyst to drive this vision into reality. AI’s potential is fueling an era that is likely to be more dynamic and results-driven than ever before
👍 Major ProcureTech solution providers are going all-in on AI to remain competitive and avoid disruption by AI-native startups
💰 Savings is ‘job one’, with 74% of CPOs prioritising cost savings due to inflation and executive pressure. Book a demo to see how Market Dojo Sourcing is a major lever to drive 16% average savings
🎭 Nonstop geopolitical ‘drama’ has created a trade and technology battleground, creating pricing volatility, longer lead times and supplier instability. Success in 2025 depends on how well each new challenge is tackled
🔗 Prioritising supply risk management is crucial but it’s time to move on from reactive risk mitigation. Leaders need to address vulnerabilities, throughout the supply chain, before they threaten operations
🦾 Supply chain resilience is being prioritised by diversifying sources, building stronger supplier relationships, and using AI-powered tools. Agile strategies and advanced automation will ensure business continuity in a volatile environment
♟️ The focus is on managing spend better, not managing more spend, through active sourcing, category management, stakeholder engagement, and supplier collaboration
🤝 Investing in supplier collaboration is a powerful way to improve results by unlocking better pricing, driving cost-saving initiatives and finding process efficiencies. Learn how to Reshape Your Supplier Relationships
🤩 Improving the customer experience (CX) is key to business enablement. Intake management solutions can simplify procurement engagement. Other CX improvements are a mindset shift from gatekeeper to service enabler, removing bureaucracy and streamlining processes
🔥 The demand for next-gen procurement talent is heating up, with skills-based hiring becoming essential to tackle changing business needs
✨ AI’s impact in 2025 will drive substantial efficiency gains across the entire Source-to-Pay process. The transition from manual and legacy processes will require time, trust and strong change management strategies
😱 AI FOMO (fear of missing out) will accelerate digital transformation as executives seek to avoid financial consequences and criticism of being automation laggards
🎯 CPOs will actively recruit/develop AI expertise as AI skills become critical for procurement professionals looking to advance their career
🕵️♂️ Agentic AI is entering the scene, autonomously taking actions in the real world to achieve specific objectives. ‘Next level’ Agentic AI is predicted to impact multiple areas of procurement activity
🌊 A wave of self-driving procurement tools is expected to hit the market by the end of 2026
🤑 Inflation and ‘tariff-plus’ price increases will ramp up in the second half of 2025 due to new import tariffs
💸 The cost of capital is expected to stay ‘higher for longer’ due to persistent inflation
📈 A rise in competitive sourcing will occur with companies using AI-powered eSourcing tools to automate more of the overall process and increase capacity. Watch video of Market Dojo’s autonomous sourcing capabilities
💘 CPOs will leverage AI-powered marketplaces to match buyers and suppliers, replacing legacy RFP processes
📊 Invoice and vendor payment data will be integrated into dashboards to improve cash flow visibility, reduce borrowing costs and improve profitability
💪 Robust spend management needs to include better management of post-contract suppliers and tail spend
🔬 AI is in its trial and error phase so inevitable AI ‘fails’ will occur, requiring strong governance, checkpoints, and human oversight
👾 Cybersecurity threats often originate from third-party suppliers. Be ready to isolate compromised suppliers, secure alternatives and block fraudulent transactions
🌎 ESG uncertainty, particularly DEI initiatives, is predicted to hit the U.S., with a potential slowdown of investment or rebrand of programmes
If any of these issues resonate, download our eGuide The Ultimate Guide to Power-Up Sourcing and take the first step towards streamlined, automated processes and powerful cost-saving solutions.
For the full Ardent Partners Report, please click here for your complimentary copy
February 27, 2025