ProcureAbility: Procurement is Prioritising Digital and ESG

Digital transformation and enhanced sustainability efforts currently rank as top strategic priorities for procurement leaders. 

That's according to the latest research from ProcureAbility, which has published its latest findings in partnership with ProcureCon.

The report, The State of Procurement in H2 2025, explores ongoing procurement challenges, as well as what senior professionals across procurement, supply chain and risk management in a broad range of industries are prioritising as they look ahead to 2026.

Findings from the report highlight procurement’s strategic pivot toward digital transformation, a wider push for sustainability and a continuing struggle with supply chain disruption. Leaders also rank AI as critical to future operations, though few say their organisations have matured beyond basic implementation.

AI maturity remains limited

AI is now a standard feature in procurement functions. Every procurement leader surveyed by ProcureAbility – Jabil company focused on procurement and supply chain services – reports some level of AI implementation in their organisation.

However, few rate their maturity as advanced, with a significant majority (72%) saying their AI maturity is “moderate.” This includes organisations that see some efficiency gains or have isolated success stories, but where AI still operates within narrow scopes.

Just 6% claim to have reached an “advanced” state, where AI delivers measurable results and is deployed broadly across procurement functions.

Conrad Snover, CEO at ProcureAbility, explains: “AI is now commonplace in procurement, but as the survey results suggest, most organisations 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.

"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."

This approach uses AI to assess supplier and market risks before they cause disruption, shifting procurement teams away from reactive responses. Risk management is increasingly dependent on this kind of foresight, especially as organisations face persistent supply chain instability.

Supply chain resilience under pressure

The report identifies supply chain disruption as the most pressing challenge facing procurement teams in both 2025 and into 2026. Over the past 12 months, around two-thirds (65%) of leaders say they have faced shortages across key inputs.

Nearly half of respondents (47%) rank disruption, risk and uncertainty as the biggest challenges for procurement over the next year.

This has pushed many organisations to diversify their supplier base. Moving away from sole-source strategies, procurement leaders aim to improve supply chain resilience.

However, the effectiveness of these shifts is still mixed. Most respondents describe their supply chain adaptability as either “somewhat effective” (59%) or “not very effective” (38%), revealing a need for stronger operational frameworks that support flexible sourcing, inventory management and risk forecasting.

The report’s data suggest procurement teams are at a turning point, where strategic adjustments must match the scale of global challenges. Resilience is fast becoming a measurable capability that procurement must build into core operations.

Digital and ESG priorities shape enterprise goals

Looking ahead to 2026, digital transformation emerges as the leading initiative for procurement teams, with 65% of leaders listing it as their primary focus.

Alongside this, 51% rank ESG initiatives among their top priorities.

Meanwhile, procurement divisions are positioning themselves as key contributors to enterprise-wide value creation. The report shows that two main areas dominate this conversation: supplier relationship management and process efficiency.

Almost half (45%) of leaders highlight supplier management as a central focus, while 43% aim to improve internal processes for better efficiency. These priorities reflect procurement’s growing role in shaping not only operational outcomes but also long-term corporate performance.

Darshan Deshmukh, President at ProcureAbility, adds: “It’s telling that digital transformation and ESG are the two top enterprise priorities.

"Procurement is at the centre 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.”