Chief procurement officers (CPOs) have set their priorities when it comes technology selection and implementation to optimize operations, according to the 2025 ProcureCon survey of 100 chief procurement officers.

They put a strong focus on data analytics, artificial intelligence (AI), and Internet of Things (IoT) solutions.

The report highlights that 38% of procurement leaders identified enhancing data analytics and spending visibility tools as their top initiative for the next 12 months. Improved analytics capabilities enable organizations to identify cost-saving opportunities, strengthen supplier relationships, and make data-driven strategic decisions.

Procurement priorities in 2025

AI and machine learning are also gaining momentum, with 33% of respondents citing them as a priority. AI-driven procurement tools are expected to automate routine tasks, provide predictive insights for sourcing strategies, and improve efficiency and decision-making accuracy.

CPOs are playing a critical role in these technology initiatives, but many are collaborating with other executives. While 39% of respondents said their CPOs would take sole leadership of tech-driven procurement transformations, 60% indicated that their CPOs would collaborate with other executives, such as chief information officers (CIOs) and chief technology officers (CTOs). This collaboration ensures procurement technology aligns with broader organizational IT strategies.

Supply chain visibility and sustainability are also key focus areas. The report found that 28% of procurement leaders are investing in IoT technologies for real-time tracking, while 26% are prioritizing sustainability-driven procurement technologies. IoT solutions enhance real-time supply chain monitoring, while sustainability-focused tools help organizations meet environmental, social, and governance (ESG) objectives.

AI adoption in procurement is accelerating, with 82% of respondents confirming they have identified or prioritized AI use cases within their organizations. Moreover, 90% of procurement leaders are either considering or actively implementing AI agents to optimize procurement operations within the next six to 12 months. These AI-driven solutions could automate complex decision-making and drive significant efficiency gains.

However, while AI enthusiasm is high, confidence in execution remains moderate. Only 27% of respondents said they are noticeably confident in their teams’ ability to leverage AI for process automation, while 65% expressed some confidence. Meanwhile, 8% reported little to no confidence, citing skill and resource gaps as primary challenges.

As procurement teams move toward greater digital transformation, AI, machine learning, and real-time tracking technologies will play a crucial role in shaping the future of procurement operations.

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