Deloitte: CPOs Betting Big on AI and Digital Procurement
The 12th edition of Deloitte's Global CPO Survey finds procurement at a critical inflection point.
Leaders are facing unprecedented complexity, from global supply chain disruption and regulatory shifts to rapid technological advancements transforming the industry at large.
The survey offer insights from more than 250 CPOs across 40 countries, and reveals how procurement executives are embracing generative and agentic AI, investing in talent and managing risks to guide the C-suite amid increasing market turbulence.
Jennifer Brown, Offering Leader for Supply Chain And Network Operations at Deloitte, says: "As the role of the chief procurement officer continues to evolve, these executives are increasingly recognised as indispensable, trusted advisors to the C-suite.
"Our 2025 survey underscores the critical importance of CPOs serving as transformative agents of change – empowering organisations to harness the full potential of digitally-enabled supply markets and driving value through vertically-integrated solutions."
Leading the way through digital transformation
CPOs who took part in the survey highlighted that procurement is undergoing a modern transformation, with a strong focus on both digital tools and investing in AI.
The top quartile of procurement organisations, dubbed as 'Digital Masters', are allocating up to 24% of their budget on technology. This is almost double the figure reported back in 2023 and a further increase to 26% is anticipated in the next fiscal year.
Big bets on Gen AI and agentic AI appear to be paying off, with Digital Masters obtaining an average 3.2x investment return on Gen AI. A 1.5x increase in ROI is projected for 'Followers,' those further behind their competitors.
Resilience is key
As the risk landscape evolves and uncertainty around the geopolitical climate persists, CPOs are discovered to be the executives taking action.
- Maintaining active alternative sources (74%)
- Enabling greater visibility into the supply chain (64%)
- Enhancing supplier information sharing and collaboration (61%)
Barriers facing procurement
When asked about the top barriers preventing value from being delivered in procurement, CPOs said:
- Siloed ways of working (57%)
- Competing priorities diluting focus (46%)
- Organisational or technology capability to support execution (40%)
- The talent gap (34%)
Without major investment in talent development and a move away from siloed operating models, procurement faces an uphill task to align with and influence business units and partner functions.
Despite these concerns, harnessing AI for autonomous processing presents a major opportunity for lowering costs and driving ROI.
Ryan Flynn, Principal at Deloitte, adds: "Procurement is at the forefront of managing increasing supply market complexity, and successful CPOs know harnessing the power of digital and AI is helping drive resilience, efficiency and growth.
"Organisations that prioritise both tech modernisation and talent investment are better able to not only survive but thrive amid market fluctuations."
