ProcureAbility: What are the Strategic Priorities for CPOs?

A report from ProcureAbility has highlighted the continuous evolution of procurement roles, goals and priorities for CPOs, as well as the biggest challenges.

ProcureAbility, part of the Jabil group, has published its 2026 report, which provides readers the data and an insight into the role of a Chief Procurement Officer and the teams they are leading. With the survey responses coming from selected senior procurement leaders from a range of industries.

It works as a checkpoint for the function, looking at where procurement has been, and where it is heading next – by examining the evolution of the function, its goals and priorities. With this year's edition findings highlighting strategic priorities for CPOs in 2026, what they believe the biggest challenges will be over the next 12 months.

It also highlights the biggest barriers to AI readiness.

AI adoption: progress and obstacles

When asked about the current readiness of their company when it comes to harnessing AI within their procurement operations, 100% of procurement leaders reported some level of utilisation of AI in their procurement operations.

Only 11% of respondents reported being "fully ready," leveraging existing AI solutions with measurable impacts, while 65% of respondents considered their AI readiness "mostly ready," with clear AI strategies and active pilot solutions.

Among the 89% of respondents who aren't fully prepared for AI implementation, three primary obstacles emerged. Data privacy and compliance concerns topped the list, with 67% identifying this as a barrier to adopting AI in procurement operations.

Meanwhile, 54% pointed to inadequate data quality and poor cross-system integration as limiting factors and 51% expressed worries about AI supplanting human judgment in decision-making and operations.

Conrad Snover, CEO of ProcureAbility, says: "Many organisations are still facing barriers to embracing AI.

"While these can feel daunting, the real opportunity lies in tackling them systematically – because every obstacle overcome isn't just progress, it's a step toward reshaping procurement's future and defining the leaders of tomorrow."

CPO priorities and challenges in 2026

Respondents identified their key focus areas and primary concerns for the coming year.

For 2026, strengthening supplier relationships and strategic partnerships stands out as the top priority among CPOs. This matters greatly to 55% of respondents and moderately to another 42%.

The next highest priorities are implementing AI-driven procurement automation, cited by 45% and leveraging strategic sourcing and market intelligence to drive business growth, mentioned by 42%.

Looking at challenges, CPOs face three major obstacles in 2026: talent acquisition and retention leads at 54%, followed by balancing cost reduction with growth demands at 52%, and meeting sustainability and ESG compliance requirements at 46%.

Darshan Deshmukh, President of ProcureAbility, adds: "While procurement is currently undergoing a transformation led by AI, the function remains a people business. The investments organisations make in nurturing supplier, partner and customer relationships continue to be vital in unlocking long‑term value."

As procurement evolves over 2026, it is vital that procurement leaders continue this dialogue. Procurement & Supply Chain LIVE events in 2026 provide the perfect platform for such conversations.

All procurement and supply chain leaders leaders should attend:

• Procurement & Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Procurement & Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

The evolving role of the CPO

The report, which was created in partnership with ProcureCon, highlighted four emerging themes that define how the CPO position is transforming now and in the years ahead.

CPOs are increasingly positioned as strategic leaders, proving that procurement extends far beyond transactional operations to become a fundamental engine of business success.

Their role in sustainability initiatives continues to expand, with CPOs serving as essential collaborators in cross-departmental efforts and likely assuming even greater responsibility in this area than before.

Additionally, CPOs are emerging as architects of AI governance standards, guiding supplier organisations toward robust data practices and ethical AI implementation. Finally, CPOs are evolving into storytellers for the enterprise, converting procurement insights into narratives that resonate with stakeholders.

These trends point to a fundamental transformation in procurement: the CPO role is gaining recognition as a strategic leadership function that drives innovation, manages risk and advances organisational goals.