Artificial intelligence (AI) has become universal in procurement, but most organizations are struggling to move beyond early adoption, according to a new industry survey from procurement and supply chain services firm ProcureAbility.
The report found that 100% of procurement leaders surveyed have implemented AI in some capacity. Yet only 6% said their organizations had reached an advanced stage of maturity, with measurable enterprise-wide results. Three-quarters (72%) described their AI maturity as “moderate,” with gains limited to certain functions.
The findings are based on responses from senior leaders across procurement (35%), supply chain (41%), and risk management (24%). One in five (18%) were in the C-suite, underscoring the high level of strategic oversight represented. Respondents spanned industries including aerospace and defense, automotive, chemicals, consumer products, energy, and industrial manufacturing.
Most of the companies represented manage significant procurement budgets: 64% reported more than $250 million in spending under management, including 34% that oversee more than $1 billion.
How businesses can use AI well for procurement
Executives cited three main areas where they expect AI to deliver impact:
- Strategic decision-making: Leaders said AI will enhance spend analysis, uncover hidden savings opportunities, and help balance cost, speed, and sustainability.
- Automation of operations: Respondents anticipate eliminating repetitive work such as supplier reviews, contract analysis and invoicing, as well as optimizing workflow approvals and warehouse operations.
- Predictive risk management: Many expect AI to transform risk monitoring by enabling continuous supplier viability checks, early disruption detection, and real-time alerts on geopolitical and market shifts. Leaders also see AI improving demand forecasting and supply chain scenario modeling.
Beyond technology adoption, supply chain disruptions remain procurement’s biggest test. 65% of executives said they experienced shortages in the past year, and 47% ranked disruption management as their top challenge for the year ahead. While many are diversifying suppliers, most rated their adaptability as only “somewhat effective” (59%) or “not very effective” (38%).
Looking forward, 65% of respondents said digital transformation will be their top initiative in 2026. Environmental, Social, and Governance (ESG) goals ranked second, with 51% citing them as a major priority. Supplier relationship management (45%) and process efficiency (43%) also made the list.
“Digital transformation and ESG are now twin priorities,” said ProcureAbility president Darshan Deshmukh. “Procurement is at the center of both — deploying technology to unlock value while advancing sustainability goals.”
With procurement leaders acknowledging AI’s potential but struggling to mature its use, 2026 could be a pivotal year. The report warns that organizations failing to deliver measurable value from AI soon risk falling behind competitors who embed it more deeply into procurement and supply chain functions.
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