Executive Summary
What factors will drive procurement transformation in the next five years? And how are procurement leaders preparing for it?
A survey by The Hackett Group in partnership with GEP reveals the scale of the shift and the gaps that still exist.
Based on interviews with procurement leaders at large global enterprises with more than $1 billion in annual spend, the research report highlights the priorities, challenges, and investments expected to reshape procurement over the next five years.
Procurement organizations are preparing for major operational and technological change driven by AI-enabled technology, digital procurement, and automation.
89% of procurement leaders expect high-to-extensive change in information and analytics, and 77% expect similar levels of change in technology solutions to be applied across the source-to-pay lifecycle.
Adoption of agentic AI is increasing but remains in early stages. Around 17% of organizations report moderate to large-scale deployment, while 44% are actively piloting the technology. Despite strong interest, leaders consistently identify data quality as the key barrier to scaling AI across procurement processes.
Many organizations are addressing these challenges through procurement orchestration, which integrates systems, workflows, and stakeholders across the procurement lifecycle. 78% of procurement leaders consider orchestration highly or very important to their overall strategy, not only to improve process efficiency but also to strengthen collaboration with finance, legal, IT, and other business functions.
Risk management remains a major gap. On average, only 43% of purchasing categories have proactive risk monitoring, which leaves most categories managed reactively. Procurement leaders are investing in improved supplier visibility and stronger data foundations to detect emerging risks earlier.
Category management strategies are also evolving. Procurement teams are focusing more attention on high-spend and high-risk categories supported by stronger market intelligence and closer collaboration with suppliers and internal stakeholders in an increasingly volatile supply environment.
This report provides procurement executives with a practical perspective on the technologies, capabilities, and operating model changes shaping the future of procurement.
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FAQs
AI-enabled technology, digital procurement platforms, evolving skill requirements, and redesigned operating models will drive transformation. Leaders expect the greatest change in analytics, information capabilities, and procurement technology solutions.
According to the 2026 Procurement Executive Insight Report, about 17% of organizations have deployed agentic AI, and 44% are piloting it. Adoption is strongest in structured processes, but poor data quality and risk management strategies limit broader deployment.
Procurement orchestration connects systems, processes, and stakeholders across the source-to-pay lifecycle. Leaders use it to standardize workflows, improve compliance, increase transparency, and enable automation and AI at scale.