How Predictive Analytics is Optimising Procurement

Procurement has been at the heart of rapid transformation, with the continued evolution of technology seeing the function move from a back-office role into the strategic decision-maker it is today.

But the development is far from over, with procurement teams set to carry on using tools like predictive analytics and automation, which will allow teams to optimise procurement while also reaching their wider business goals.

Exploring the 2025 data

With insights and strategies for smart business buying provided by Amazon Business' 2025 State of Procurement Data report, findings show:

• 42% of organisations are already leveraging AI-driven optimisation for purchasing decisions today
• 68% of senior leaders say using AI to analyse data and optimise operations is a top priority
• 64% of decision-makers see generating better insights as a top priority
• 59% of decision-makers completely agree they're involved in strategic decisions that impact the organisation at large

Procurement: No longer a backoffice function

Shelley Salomon, Vice President, Amazon Business, says: "Today, procurement plays a strategic role in driving innovation, boosting operational efficiency and building resilience across organisations.

"Our third annual study of nearly 3,500 global procurement and organisational leaders reveals that while challenges like managing efficiency, costs and supplier relationships remain critical, procurement is also leading the way in empowering businesses to thrive in an increasingly complex and dynamic environment. 

“Each year, this report captures evolving trends that procurement teams must navigate, from digital transformation and AI to sustainability and resilience, showcasing how procurement's role continues to expand and adapt to address these global shifts.

“Procurement is no longer a backoffice function — it’s a key competitive advantage, allowing companies to reduce costs, increase operational efficiencies and fuel growth initiatives."

Amazon Business teamed up with KRC Research to interview procurement and organisational leaders to determine the trends that are shaping procurement in 2025.

Its research found that:

• Strategic innovations are meeting historical roadblocks: Many leaders are witnessing procurement's rapid evolution, but longstanding roadblocks such as organisational complexities, budgets and supplier relationships still hamper progress
• Optimisations inspired by improved insights: Those who took part in the survey, in the majority, believe there is still room for further optimisation across procurement – with several focusing on the need for stronger data, insights and analysis
• Supplier relationships can make or break: Respondents mentioned their suppliers' inability to aid digital procurement, and their lack of clear communications and support as two of the most important challenges to procurement operations today
• Impactful purchasing rises in importance: Responsible purchasing remains top of mind, with 80% of decision-makers saying their organisations have mandates or goals for working with certified suppliers

Those teams which harness the power of predictive procurement don't just create smarter, more efficient workflows; they can also obtain actionable insights – giving them the opportunity to give buyers a seat at the table.

Redefining procurement skills in the AI era

By using these tools and having fewer administrative responsibilities, procurement professionals can focus on strategic value, such as sustainability and business growth.

Together with Genpact, Amazon Business is using AI to simplify the insurance claims process, with automated workflows enabling insurers to save time, cut costs and improve the customer experience.

With procurement evolution showing no signs of slowing down, AI will continue leading the charge. The automated tools will assist teams in optimising their operations and shift their attention to business goals – at the same time, providing flexibility within the constantly shifting market.

Whether they simplify workflows or identify disruption before it takes hold, AI-powered tools equip buyers to save money, make fast, intelligent decisions and pave the way for sustainable growth.

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