Procurement Teams Face Growing Pressure to Adopt AI, Fairmarkit Finds

A new research report from Fairmarkit warns that procurement teams are falling behind in the AI race—even as suppliers, executives, and economic conditions accelerate the urgency for change. Based on a 2025 survey of procurement leaders across industries, the report identifies deep disconnects between executive mandates and actual implementation, with trust, governance, and cultural barriers slowing progress.

The report, titled 2025 GenAI in Procurement Index, outlines four pressure points shaping procurement’s future and offers a roadmap for teams to turn that pressure into strategic advantage.

Suppliers Are Moving Faster Than Buyers

94% of procurement leaders say their suppliers are already using AI to shape negotiations. But while suppliers move quickly to gain leverage, procurement teams remain hesitant.

The top concern is data quality.

• 43% of respondents worry about making decisions based on incomplete or inaccurate AI-generated information.

• 39% fear that automation could commit to unfavorable deals without enough human oversight.

Underlying both concerns is a lack of trust in AI’s reliability. Without better data governance and more transparency in decision-making, the risk of lopsided negotiations will only grow.

Economic Pressures Raise the Stakes

Procurement isn’t just navigating a technology shift—it’s doing so in a volatile economic environment.

• 84% of leaders believe a recession is already happening or will arrive by the end of 2025.

• 45% cite cost control as their top challenge.

• 34% are still grappling with supply chain disruptions.

With little room to delay, teams are under pressure to produce results fast. Early adopters of GenAI are already reporting gains, including nearly 10% improvements in productivity and effectiveness, according to the report.

Cultural and Organizational Barriers Slow AI Adoption

Despite strong top-down support—91% of organizations have executive mandates to adopt GenAI—many procurement teams remain stuck.

Key obstacles include:

• 64% cite data privacy and security concerns as a major barrier.

• 55% face governance and compliance roadblocks.

• 54% say internal policies restrict access to AI tools.

• 57% point to resistance to change among staff.

• 56% report that high implementation costs are slowing progress.

• 52% admit their teams don’t fully understand the technology.

These figures reflect a broader pattern: procurement teams are being asked to transform, but many lack the tools, support, or clarity to execute that transformation effectively.

AI Isn’t Replacing Talent—It’s Reshaping It

Contrary to fears that AI will eliminate jobs, the report suggests that GenAI is driving workforce evolution, not reduction:

• 44% of leaders expect their teams to grow due to AI adoption.

• Only 5% expect headcount reductions.

• 69% of organizations are investing in AI training.

• 67% are hiring AI-specific talent.

The most in-demand skills are shifting toward:

• Data interpretation (82%)

• Strategic decision-making (75%)

• Cross-functional collaboration (69%)

As AI takes over routine tasks, human roles are becoming more analytical, strategic, and collaborative—focused on using AI insights wisely rather than just generating them.

Looking Ahead: Turning Pressure Into Progress

Fairmarkit’s report closes with four actions procurement leaders can take now to move forward:

• Enhance Skills and Foster Adaptability: Invest in continuous training focused on data literacy, strategic thinking, and collaboration.

• Centralize and Standardize Data: Automate spend data management to ensure confidence in AI-driven decisions.

• Simplify AI Integration: Use low-code platforms to make AI tools accessible across teams and workflows.

• Strengthen Compliance and Governance: Embed privacy and ethical safeguards directly into AI systems to address resistance and risk.

The message is clear: AI in procurement isn’t a future problem—it’s a present priority. Teams that build trust, develop skills, and embrace change now will be best positioned to lead in the years ahead.

In a landscape defined by uncertainty and acceleration, the most resilient organizations will be those that act with clarity and adapt with purpose.

What This Means

Procurement teams face growing pressure from every direction—economic uncertainty, executive mandates, supplier-led AI disruption, and internal cultural resistance. While the risks of inaction are clear, so are the opportunities: early adopters of GenAI are already reporting measurable gains in efficiency and effectiveness.

For AI skeptics or those wondering why traditional tools aren’t enough, the report offers a compelling answer: the competitive landscape is shifting. Suppliers are using AI. Economic conditions demand faster, smarter decisions. And as AI tools become more embedded in workflows, the gap between early adopters and late movers will only widen.

To succeed, procurement teams must shift focus from whether to adopt AI to how—starting with trust, training, and governance.

“GenAI isn’t taking jobs,” the report notes, “it’s transforming them.”

This article is based on findings from Fairmarkit’s 2025 GenAI in Procurement Index, a research survey of procurement leaders conducted by the company.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.