ProcureAbility released “The State of Procurement in H2 2025.” The report, created in partnership with ProcureCon, reveals top priorities for procurement leaders. Based on responses from senior procurement, supply chain and risk management leaders in a diverse set of industries, the report offers key insights into the current state of procurement.
ProcureAbility and ProcureCon partnered to understand the key challenges of procurement organizations and leaders, looking at the current state of the field in 2025, as well as their predictions and priorities for 2026. The data displays clear prioritization of digital transformation and enhanced sustainability efforts, as well as supply chain disruptions as the top concern for 2026.
AI Maturity Lags Far Behind Adoption
Respondents were surveyed about their company’s current use of AI.
- 100% of procurement leaders reported some level of AI implementation.
- 72% of respondents considered their AI maturity “moderate,” with successful use cases in some functions and some efficiency gains.
- Only 6% of respondents ranked their AI maturity as advanced, with measurable results and widespread implementation across procurement functions.
“AI is now commonplace in procurement, but as the survey results suggest, most organizations are still in the early or moderate stages of maturity. That means the real differentiator for CPOs isn’t whether you’ve adopted AI—it’s how quickly and effectively you scale it,” said Conrad Snover, CEO of ProcureAbility. “The leaders who can move beyond pilots to embed AI into the daily tasks, across sourcing, supplier management and risk mitigation, will be the ones who turn today’s promise into tomorrow’s competitive edge.”
The report reveals that procurement teams deem AI to be essential for transforming supply chain risk management, using AI to do predictive risk assessment instead of traditional reactive monitoring. This use case is top of mind for many leaders, as supply chain disruption remains a top challenge for 2025 and 2026.
Supply Chain Disruption Is the Primary Challenge
- 65% of respondents reported struggling with supply chain shortages in the past 12 months.
- 47% of procurement leaders ranked managing supply chain disruptions, risks and uncertainties as the most significant challenge facing procurement operations over the next 12 months.
The report reveals that organizations are moving away from sole-source arrangements in order to diversify their supply to increase supply chain resilience. Most respondents ranked their supply chain adaptability as somewhat effective (59%) and not very effective (38%), highlighting a critical area for growth across procurement organizations.
Top Enterprise Priorities for 2026
- Digital transformation is the most important initiative for 65% of procurement leaders over the next 12 months.
- 51% rank enhancing environmental, social and governance (ESG) initiatives as one of their top priorities for next year.
- Regarding value creation, specifically, supplier relationship management (45%) and process efficiency (43%) are key areas of focus for procurement organizations for the next 12 months.
“It’s telling that digital transformation and ESG are the two top enterprise priorities. Procurement is at the center of both—deploying technology to unlock value while advancing sustainability goals. This dual focus shows how procurement is no longer just supporting strategy, but also actively setting the pace for enterprise transformation,” said Darshan Deshmukh, president of ProcureAbility.
