Executive Summary
Procurement is carrying far more weight than it did a few years ago.
The latest findings from the CIPS Global State of Procurement & Supply 2026, supported by GEP, show a function moving closer to business leadership, with 52% of respondents saying procurement now has greater influence over organizational spend and 41% describing their relationship with the board as aligned or close.
Perhaps most tellingly, a third of procurement leaders now report to the CEO, MD or owner — more than double the figure reported in previous surveys. That's a seat at the table.
At the same time, the demands on procurement teams are intensifying. Nearly half of respondents (47%) flagged technology and risk management as areas most urgently needing attention, and over half are planning to invest in staff training in the next 12 months. The skills gap is real and needs to be fixed soon.
AI expectations have also become more grounded. The hype-driven experimentation phase seems to be giving way to something more practical: nearly half of organizations (48%) are planning AI investment, but the conversation has shifted toward what actually gets implemented and delivers results, especially among larger enterprises moving into automation at scale.
Sustainability is another area where procurement is taking on more responsibility. ESG importance is growing or holding firm for 93% of respondents, and the share of businesses where procurement leads on sustainability commitments has doubled in just a year.
What the report captures is a function stepping into a broader leadership role — no longer just managing costs and contracts, but increasingly expected to connect strategy, execution and business outcomes. The expectations, and the opportunities, are greater.
FAQs
Procurement is gaining greater visibility with leadership because organizations increasingly rely on it to interpret market volatility, supplier risk, cost pressures and operational disruption in real time. As procurement becomes more embedded in strategic planning, business leaders are bringing those insights closer to executive decision-making and enterprise priorities.
The pressure is no longer just about cost savings. Procurement teams are being asked to operate far beyond traditional sourcing and savings mandates. Organizations now expect them to respond quickly to supply-side volatility, strengthen resilience, support ESG commitments and improve risk visibility — while delivering efficiency and commercial value across increasingly complex global operations using new technologies.
Organizations continue to invest in AI, but expectations are becoming more pragmatic. Procurement leaders are focusing on building the operational foundations, process maturity and data readiness needed to apply AI in ways that improve execution, automate workflows and support faster, more informed decision-making.
More mature procurement organizations are moving beyond visibility and analysis toward operational execution at scale. While many companies can identify risks, monitor suppliers and generate insights, leading organizations are better positioned to turn those insights into coordinated action across sourcing, supplier management and supply chain operations. The report highlights a widening divide between organizations building foundational capabilities and those beginning to operationalize AI and connected workflows across the enterprise.