Navigating the Speed of AI: Challenges for Procurement Teams in a Rapidly Evolving Landscape

A recent publication by Fairmarkit highlights the increasing urgency for procurement teams to adapt as artificial intelligence accelerates deal-making within supply chains. Their 2025 AI in Procurement Index, derived from insights gathered from procurement leaders, reveals a notable disparity between executive expectations and the actual capabilities of these teams when it comes to leveraging AI. The report identifies several key challenges: trust in AI-generated data, escalating costs, sluggish internal advancements, and a widening skills gap.

The findings suggest that procurement is reaching a critical juncture. “GenAI has transitioned from being an optional tool to an essential component for competitiveness,” the report emphasizes.

One major issue is that suppliers are outpacing buyers in adopting technology. An impressive 94% of procurement leaders acknowledge that their suppliers are already utilizing AI during negotiations. Conversely, 43% of professionals express concerns about relying on perhaps flawed or incomplete AI data for decision-making. Additionally,39% worry that automated systems might inadvertently agree to unfavorable deals amid rapid discussions.

Economic factors are also driving the need for speed in procurement processes. The report indicates that 84% of leaders believe we might potentially be facing a recession either now or by late 2025, with cost management emerging as the primary challenge for nearly half (45%) of those surveyed.

Despite an overwhelming majority (91%) claiming they have directives from executives to implement AI solutions,various internal obstacles persist. These include worries about data privacy (64%), governance issues (55%), high implementation costs (56%), and insufficient understanding among team members regarding how to effectively utilize this technology (52%).

Nevertheless, the landscape of required skills is evolving due to AI’s influence. “GenAI isn’t eliminating jobs; it’s transforming them,” states the report. Almost half of those surveyed anticipate growth within their teams rather than reductions. Essential skills now encompass data analysis, strategic planning, interdepartmental collaboration, and flexibility.

Looking forward, nearly half (49%) of procurement leaders foresee increased pressure to integrate AI into their operations over the coming year.

Fairmarkit suggests that procurement teams can navigate these challenges by concentrating on four key areas: enhancing data quality; simplifying user experience with AI tools; fostering trust and compliance within these technologies; and prioritizing training initiatives. “By proactively addressing these aspects,” concludes the report, “procurement teams can turn current pressures into valuable opportunities.”