New report reveals procurement AI adoption set to bridge 9% efficiency gap in 2025
The Hackett Group, Inc. (NASDAQ: HCKT), 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 Christopher 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.”
AI’s expanding role in procurement
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.
While adoption is still in its early stages, procurement leaders expect breakthrough value, with some organizations already achieving productivity improvements of 25% or more.
Procurement leaders see AI driving impact across key functions, with top use cases in purchase order processing, spend analytics and e-procurement. Pilot activity is ramping up in contract life-cycle management, advanced analytics and category management. Teams are also investigating customer support, e-sourcing and advanced analytics use cases.
The procurement road map for AI in 2025
The study shows that procurement organizations are making a broad shift toward intelligent automation to help advance their top priorities: improving spend reduction, ensuring supply continuity, transforming the operating model, combatting inflation and implementing digital transformation.
Transforming the operating model moved up in priority from previous years, as leaders look to bridge a widening efficiency gap (9%) and prepare the organization for large-scale AI deployment. In fact, many procurement organizations reported plans to invest in new Gen AI technology (42%), as well as upgrading existing Gen AI technology (33%).
However, scaling AI will not be without its challenges. The biggest perceived roadblocks for procurement leaders include data quality, data privacy and regulatory matters, supplier volatility, and the complexity of existing technology and processes. However, scaling AI will not be without its challenges.
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.
With economic pressures intensifying and expectations for cost savings rising, procurement leaders who embrace AI will gain a significant competitive edge in efficiency, cost control, and supplier management.
Download the full 2025 CPO Agenda report here.
About The Hackett Group®
The Hackett Group, Inc. (NASDAQ: HCKT) is an IP and platform-based, Gen AI strategic consulting and executive advisory firm that enables Digital World Class® performance. Using AI XPLR™ and ZBrain™ – our ideation through implementation platforms – our experienced professionals help organizations realize the power of Gen AI and achieve quantifiable, breakthrough results, allowing us to be key architects of their Gen AI journey.
Our expertise is grounded in unparalleled best practices insights from benchmarking the world’s leading businesses – including 97% of the Dow Jones Industrials, 89% of the Fortune 100, 70% of the DAX 40 and 55% of the FTSE 100. Visit us at www.thehackettgroup.com.
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This release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward-looking statements. Forward-looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that may impact such forward-looking statements include without limitation, the ability of The Hackett Group to effectively market its digital transformation, our ability to transition our capabilities to support generative artificial intelligence (AI)-related consulting services and solutions and other consulting services, our ability to effectively integrate acquisitions, including the LeewayHertz acquisition into our operations, our ability to manage joint ventures and successfully cooperate with our joint venture partners, competition from other consulting and technology companies that may have or develop in the future, similar offerings, the commercial viability of The Hackett Group and its services as well as other risk detailed in The Hackett Group’s reports filed with the United States Securities and Exchange Commission. The Hackett Group does not undertake any duty to update this release or any forward-looking statements contained herein.
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Many procurement organizations reported plans to invest in new Gen AI technology (42%), as well as upgrading existing Gen AI technology (33%)
