AI in procurement: 40% of teams are using AI for decision-making

Traditional purchasing and supply chain management can be complex, but AI in procurement is shaking things up in a big way. This technology is revolutionizing how businesses find, negotiate with, and manage their suppliers, driving transformative changes and ushering in a future of smarter, more efficient operations. 

To truly understand this shift, we recently surveyed 210 U.S. procurement executives and directors. Our findings offer a clear picture of today's trends, what lies ahead, and key insights from leaders on the front lines of AI adoption.

Key takeaways

• Over a quarter of procurement teams are already automating over 46% of their processes with AI. 
• Two-thirds of procurement teams are using AI-powered procurement platforms to automate their procurement processes.
• High implementation costs are the biggest barrier to scaling AI in procurement.
• 40% of procurement executives consider "enhanced data analysis and insights" among the top three benefits of AI adoption, and 33.8% of all orgs selected "improved decision-making."
• Almost one-third of procurement teams use AI to lead their supplier evaluation process.
• 39.5% of respondents anticipate an increased headcount after implementing agentic AI, but a larger combined percentage (43.8%) foresee a reduction or shift in roles.
• Over three-quarters of procurement executives are either "moderately concerned" or "highly concerned" about AI-related risks tied to data quality, reliability, and bias in procurement.

Procurement teams are shifting from AI experimentation to full-scale implementation

It's clear that most companies are no longer just thinking about AI in procurement; they're actively putting it to work. Our survey reveals that a significant majority—over 73% of companies—have moved well beyond initial AI experimentation. 

• Only 10.5% are still in the "exploration" phase with no processes powered by AI yet
• 15.7% are in "experimentation" (1%-19% AI-powered processes)
• The bulk are firmly in the "implementation" (35.7% covering 20%-45% of processes) and "integration" (29.5% with 46%-74% of processes) stages
• 8.1% have achieved full "transformation" (75%+ of processes powered by AI)

Digging deeper, we see some interesting nuances. B2C companies are actually showing a stronger push toward widespread AI adoption, with 11.76% in the "transformation" stage compared to 6.59% for B2B counterparts. This suggests a more aggressive embrace of AI's full potential in B2C procurement. 

Meanwhile, industries like health science and medical technology present a varied picture, with both a relatively high 15% in "exploration" and 15% in "transformation," hinting at a two-speeds scenario with both early adopters and more cautious players. This could be due to more complex regulatory environments (heard of HIPAA?) arising concerns about data sensitivity and privacy. 

So, where is AI being directed? A huge chunk of it is going into critical areas: 

• 55.2% for predictive contract compliance monitoring 
• 50.5% for automated purchase order processing management
• 48.6% for personalized procurement recommendation 

Other significant uses include demand forecasting (43.3%), self-optimizing spend analysis (41%), competitor research (28.1%), and autonomous sourcing (26.2%).

What this all boils down to is that modern procurement teams aren't just looking for simple fixes—they need comprehensive solutions that can handle everything from automating routine tasks like POs to tackling complex challenges like predicting compliance issues and optimizing spend. 

This widespread commitment to AI is fundamentally reshaping how procurement works, making it more strategic, proactive, and ultimately, more valuable for the entire business. That's why having platforms that bring all these AI functions together is essential for hitting that next level of procurement excellence.

AI-powered procurement platforms are already becoming the industry norm

Are you reaping the benefits of specialized AI-powered procurement platforms? If not, you might find your team falling behind the curve. 

Our data shows that roughly two-thirds of procurement teams are already leveraging these dedicated platforms to automate their processes, with 61.9% reporting usage of AI-powered procurement platforms (like Zip, GEP, SAP Ariba, or Coupa). With only a tiny fraction (2.4%) of companies not using any AI tech at all, integrating AI into procurement is rapidly becoming the undisputed industry norm.

Sure, general AI tools like AI companions (74.3%) and AI agent builders (66.7%) are very popular, and AI features within existing enterprise software (54.8%) are also widely used. But the strong adoption of specialized procurement platforms highlights a distinct trend. This whole mix of tools just shows how complicated modern procurement can get. Making all these AI tools work together smoothly is where the real value is.

This is where effective agentic procurement orchestration becomes essential, helping teams seamlessly connect these different AI capabilities to streamline workflows, boost decision-making, and unlock procurement's full potential.

High costs are the biggest barrier to scaling AI

One of the biggest speed bumps for teams trying to scale AI in procurement is often the price tag. Our survey found that high implementation costs lead the pack as the biggest barrier to scaling AI, hitting 17.6% of respondents. 

But it's not just about money—concerns like data quality and reliability (16.2%), and worries about AI's accuracy (13.8%) also loom large. Add in security and governance risks (11.4%), and it's clear that successful AI scaling will really depend on finding ways to build affordable solutions, ensuring data is top-notch, and making sure AI models are transparent and trustworthy.

When we look at B2B versus B2C companies, the picture gets a bit more nuanced. 

• For B2B firms, cost (19.8%) and data quality (17.6%) are definitely the main headaches, followed by AI reliability (15.4%).
• However, B2C companies face a slightly different mix at the top, with cost (17.9%), data quality (16.4%), and lack of integrations with legacy systems (13.4%) tying with limited internal expertise (13.4%) being their biggest hurdles.

This suggests that B2C businesses might run into more internal friction or technical challenges when trying to connect new AI tools with their existing, sometimes less flexible, setups. That inflexibility usually traces back to the sheer volume of daily transactions and how tightly integrated their systems are with customer-facing operations. Many B2C setups rely on older, custom-built platforms that aren't cheap or easy to update for new AI integrations.

Two-thirds of procurement executives are leveraging AI to help with big decisions

When it comes to the real-world perks of bringing generative AI into procurement, one thing stands out: It's all about getting smarter. A whopping 40% of organizations are already seeing enhanced data analysis and insights as a top benefit, closely followed by 33.8% who report improved decision-making. 

This isn't just a happy accident—these two benefits go hand in hand. AI helps procurement teams sift through mountains of data, spot hidden patterns, and understand the bigger picture way faster than any human could. That means moving beyond gut feelings and making choices backed by solid, real-time intelligence.

Beyond just sharper insights and better decisions, AI is transforming procurement into a powerhouse for the entire business. Teams are also leveraging AI for:

• Improved compliance (29.5%)
• Better risk management (29%)
• Enhanced innovation (28.6%)
• Improved user experience (27.6%) 
• Stronger supplier relationships (20%)

This shift means procurement isn't just about buying things anymore. It's becoming a highly strategic function, proactive in identifying opportunities, managing risks, and contributing directly to the company's bottom line.

AI is replacing manual supplier evaluation processes

It might come as a surprise, but nearly one-third of procurement teams are already having AI lead their entire supplier evaluation process. Our data shows that a significant 31.4% of teams let AI take the reins, which is a big leap forward. 

This isn't a niche trend either, as a tiny 2.4% of companies say they never use AI for supplier evaluation. Most commonly, about 52.3% find that AI "often" supports human evaluators, while only 13.3% still rely mostly on manual assessments. This paints a clear picture of AI being deeply woven into how companies pick their partners.

What this really means for procurement is a big step toward more objective, data-driven decisions. AI can sift through massive amounts of supplier data, identify vendor risks, and even flag compliance issues way faster and more accurately than a human could alone. 

This level of AI integration transforms supplier evaluation from a time-consuming, often subjective task into a highly strategic and efficient process. It helps procurement teams build stronger, more reliable supply chains, proving that AI is a powerful catalyst in making procurement more proactive and impactful.

With agentic AI on the horizon, company headcount changes seem inevitable

Agentic AI—autonomous systems that act on their own—are sparking a really interesting conversation about future headcount in procurement. 

While a good chunk of respondents (39.5%) actually anticipate an increase in headcount after implementing this kind of AI, a slightly larger combined percentage (43.8%) foresee either a slight decrease (20.5%), a moderate decrease (17.6%), or even a significant decrease (5.7%) in roles. About 16.2% believe AI will have no effect on their headcount. 

This tells us AI isn't simply replacing jobs across the board—it's more about a re-shuffling or re-allocation of tasks and roles, which is a major point for teams to consider in their workforce planning.

When agentic AI enters the procurement picture, B2B and B2C companies see things a bit differently regarding headcount. 

B2B firms are more likely to expect headcount increases as AI augments their complex, strategic roles. Conversely, B2C operations lean toward AI having no effect or causing only slight decreases, likely due to their potential for greater automation of high-volume, standardized tasks. Ultimately, AI's impact on staffing aligns with each sector's unique operational needs.

B2B:

• Increase headcount: 42.7%
• Slightly decrease headcount: 19.6%
• Moderately decrease headcount: 18.2%
• Have no effect on headcount: 12.6%
• Significantly decrease headcount: 6.3%
• We do not plan to implement agentic AI in the next two years: 0.7%

B2C:

• Increase headcount: 32.8%
• Have no effect on headcount: 23.9%
• Slightly decrease headcount: 22.4%
• Moderately decrease headcount: 16.4%
• Significantly decrease headcount: 4.5%
• We do not plan to implement agentic AI in the next two years: 0%

Ultimately, AI's impact on staffing aligns with each sector's unique operational needs.

Interestingly, some industries are poised for growth. These three fields are expecting the biggest increases in headcount: 

• Engineering and architecture (72.2%)
• Manufacturing and product development (63.3%)
• Health science and medical technology (25%) 

On the flip side, these industries are bracing for more significant decreases:

• Business and finance (11.1%)
• Health science and medical technology (10%)
• Engineering and architecture (5.6%)

Notice some repetition here? While business and finance and health science have the highest significant decreases, it's worth remembering that health science and engineering and architecture also appear on the "increase headcount" list, indicating a mixed impact within these sectors. 

Industries bracing for bigger headcount drops often have parts of their procurement work that are mainly transactional, standardized, or just heavy on data with clear rules AI can follow. 

Take business and finance, for example: Routine financial procurement tasks are often perfect for full automation. Even within health science and manufacturing, while complex areas might grow, those super repetitive admin tasks could see a lot of automation.

It's apparent that AI's impact on procurement teams isn't uniform across industries. 

This highlights the essential need for companies to assess their specific workflows and strategic goals when planning for AI adoption. Proactive workforce planning, focused reskilling programs, and a deep understanding of how AI will augment, shift, or automate roles will be essential for success in this evolving landscape.

Organizations are investing heavily in responsible AI adoption

It's clear that while AI offers huge promise in procurement, teams are also keeping a very close eye on the potential downsides. Our survey found that over three-quarters of respondents are quite worried about AI-related risks, specifically concerning data quality, reliability, and bias. 

• A significant 32.9% consider these risks a "top priority"
• 48.6% are "moderately concerned" and actively addressing them
• A small fraction (16.2%) are "slightly concerned"
• Just 2.4% aren't worried at all

This high level of concern shows that procurement leaders aren't jumping into AI blindly—they're thoughtfully considering its implications.

Thankfully, most organizations aren't just sitting back and worrying. To tackle these risks head-on, many companies are instituting clear governance policies: 

• 57.6% are investing in employee training on AI usage and compliance. 
• 49% are conducting regular audits of AI outputs and decisions.
• 45.7% have formal AI ethics and compliance policies in place. 

It's reassuring to see that only 7.6% of companies have no governance measures at all, indicating a strong, widespread commitment to responsible AI adoption within procurement.

This proactive approach extends to workforce development as well. Companies understand that managing AI risks and ensuring its success requires a skilled team. Procurement employees are dedicating serious time to AI-related reskilling each week: 43.8% spend five to 10 hours, and 29.1% spend two to five hours. Even more intense training (more than 10 hours) is happening for 8.1% of employees. 

This significant investment in upskilling ensures that procurement teams are not only aware of AI risks but are also equipped with the knowledge and tools to mitigate them effectively, ultimately building greater trust and efficiency in their AI-powered operations.

Conclusion

The journey to a fully AI-powered procurement future is well underway, and the right solutions are key to unlocking its full potential.

Zip's agentic procurement orchestration platform provides everything your team needs to move beyond experimentation and into full transformation. With features designed to tackle common implementation barriers, enhance data insights for better decision-making, and seamlessly integrate your AI capabilities, Zip AI empowers you to unlock significant strategic advantages in your procurement processes. 

Don't just keep up with the curve—get a personalized demo to see exactly how Zip can elevate your procurement processes.

Methodology

The survey of 210 U.S. procurement executives and directors was conducted via Centiment Audience for Zip between May 23 and June 5, 2025. Data is unweighted and the margin of error is approximately +/-3% for the overall sample with a 95% confidence level.