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Procurement. 2025 Big Trends & Predictions Report by Ardent Partners

PROCUREMENT 2025 “ BIG TRENDS AND PREDICTIONS REPORT

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)

The 11 BIG Trends:

🚀 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

…And 14 New Predictions 

✨ 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

Download Procurement 2025 - Big Trends & Predictions Report by Ardent Partners

 

February 27, 2025
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