According to Gartner analyst Ryan Polk, the procurement function is at a crossroads.
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| Polk concludes by noting that CPOs must anticipate future challenges, define optimal organizational maturity and build resilience to mitigate risks that threaten success. |
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Why?
Polk notes that AI is growing more autonomous, protectionism is disrupting supply chains, and external forces (e.g., geopolitical shifts, energy crises and talent gaps) are reshaping the function.
That means Chief Procurement Officers (CPOs) must move fast just keep up, let alone stay ahead.
As part of a new report from Gartner, Polk highlights three key trends Gartner sees impacting CPOs in 2025 and beyond.
Those trends are:
AI is becoming more agentic
Polk says that as AI technologies evolve, AI is becoming more agentic. That means it is increasingly capable of autonomous decision making.
However, “procurement’s low data maturity will limit agentic AI’s utility,” Polk says, adding that “Today’s procurement leaders must respond quickly to determine the implications of agentic AI on sourcing and procurement and define strategies for leveraging it.”
Successful CPOs will work closely with data and analytics (D&A) leaders to make procurement data AI-ready, align it to AI use cases, set parameters for its governance and prepare pipelines to connect it with AI tools, Polk adds.
Protectionism is on the rise
The global landscape is witnessing a resurgence of protectionist measures, challenging the principles of free trade and globalization.
To maintain a competitive advantage, Polk says that CPOs must reevaluate supply chain strategies and adapt to a re-globalized environment. He adds that successful procurement leaders balance traditional procurement priorities like cost, quality and speed with emerging stakeholder priorities like risk, innovation and sustainability via improved category strategies and smarter strategic sourcing.
External factors are transforming procurement roles
Advancements in generative AI, generational shifts, energy, global divisions and regulatory complexity are reshaping procurement priorities and the roles necessary for procurement’s success, Polk says..
According to the World Economic Forum, 23% of global jobs will change in the next five years.
“CPOs must close critical skills gaps and build new talent competencies to succeed in the future,” Polk adds.
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 Polk says that while cost reduction remains a top priority, an increasing focus on sustainability and risk management marks the beginning of a new era for procurement. Leading procurement functions build capabilities and create accountability within their organizations through individualized talent strategies to prepare their teams for the future.
How 2025 trends will impact chief procurement officer priorities”
Polk concludes by noting that CPOs must anticipate future challenges, define optimal organizational maturity and build resilience to mitigate risks that threaten success.
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