Source: businesswire

The Hackett Group, Inc., a leading generative artificial intelligence (Gen AI) strategic consultancy and executive advisory firm, today released findings from its 2025 Key Issues Study, revealing that AI is rapidly redefining procurement. Indeed, 64% of procurement leaders expect AI and Gen AI to transform their roles within five years. Despite this shift, procurement faces a critical challenge: workloads are projected to increase by 10% in 2025, while budgets grow just 1% – creating a 9% efficiency gap.

“Procurement organizations must accelerate AI adoption to unlock new levels of efficiency and value creation,” said Chris Sawchuk, principal and Global Procurement Executive Advisory practice leader at The Hackett Group. “Early adopters are already seeing measurable productivity and cost improvements, but the real opportunity lies in scaling AI-driven transformation across sourcing, contract management, and supplier collaboration.”

In 2024, procurement teams explored how they can realize value through Gen AI:
– Approximately 49% of procurement teams piloted Gen AI use cases, while 4% reported large-scale deployment.
– AI-driven procurement tools delivered up to 10% improvements in productivity, quality and cost savings.
– About 47% of organizations are using embedded AI in existing procurement software like Coupa AI Classification and SAP Joule Copilot.

To accelerate AI-driven procurement transformation, The Hackett Group recommends that leaders:
– Use digitalization to automate as much as possible and facilitate advanced analytics.
– Orient your operating model to meet the needs of end-user stakeholders.
– Prioritize practical execution of procurement use cases and scale pilot projects.
– Upskill teams to work effectively with Gen AI and agents.