Ivalua asks, why are CPOs Increasing their S2P Budgets?
The latest State of Source-to-Pay Digitisation 2025 report by Ardent Partners, commissioned by spend management software provider Ivalua, examines procurement’s top priorities and emerging market trends.
The second annual study, based on surveys of procurement leaders across the world, assesses changes in technology strategy, focus and investment at large organisations.
Ivalua commissioned Ardent Partners to conduct this research. To complete the report, Ardent Partners utilised survey and interview responses from 358 procurement executives worldwide to examine the market today and the pivotal role procurement leaders play in managing uncertainty and driving business value.
The report found that, with the changing landscape of tariffs and procurement teams dealing with fluctuating trade policies and rising costs, 53% of Chief Procurement Officers (CPOs) have increased their Source-to-Pay (S2P) technology budget compared to the previous year.
Alongside this, it revealed that AI is transitioning from theory to practice, with nearly half of all CPOs utilising the technology in some capacity.
Vishal Patel, SVP Product Marketing at Ivalua, says: "As external challenges evolve and supply chains recalibrate from recent disruptions, organisations are re-evaluating costs, dependencies and resilience. Procurement is once again stepping into the spotlight, with technology now central to business performance.”
A growing call for digital transformation
90% of CPOs believe that 2025 will present more of a challenge than 2024. The function’s top priorities, according to the report, are:
- Deliver cost savings (71%)
- Reduce supply risk (42%)
- Drive digital transformation (37%)
Within this context, nearly half of CPOs (47%) plan to adopt integrated S2P technology to streamline processes and better manage supply chain complexities.
53% of CPOs have allocated more money to technology this year than last, a sharp rise from the 30% reported 12 months ago – highlighting growing confidence in digital investment as a lever for performance.
AI gaining traction as a strategic asset
72% of procurement leaders surveyed believe AI will be either transformational or significant, and nearly half of all CPOs report using it in some form today.
Around one in three are applying AI to activities such as supplier discovery, spend analysis, contract analysis and sourcing.
Many CPOs also acknowledge that AI’s success depends heavily on strong master data, a clear business case and careful implementation.
79% of CPOs signalled that productivity gains are their top AI objective. Beyond automation, AI is gaining momentum as a strategic asset: 49% expect it to enhance decision-making, while others see potential for improved stakeholder engagement and satisfaction (30%) and smarter forecasting (27%).
40% identified efficiency as a critical goal and 32% view AI as a driver for increased savings.
The critical role of data
As businesses worldwide pursue digital transformation and begin to harness AI, the role of data remains central. Almost half (48%) believe that the best way to elevate performance is through “better data visibility and analytical capabilities.”
S2P platforms enable procurement teams to respond faster, make more informed decisions and perform with greater consistency. However, even the most advanced tools cannot deliver results without clean, consistent data. According to 42% of respondents, poor data quality and limited access remain the most common obstacles to S2P performance.
Vishal adds: "To fully realise AI's promise and maximise its impact, organisations must treat data as a core enabler of transformation and innovation.
“That requires investing in data quality, building AI literacy and adopting integrated S2P platforms built on strong data foundations. The AI transformation will be a continuous journey that demands agility, trusted data foundations and the ability to adapt at scale.”
