How procurement is prioritizing technology to drive success in 2025

By Kaitlynn Sommers, senior director analyst, Gartner Supply Chain

As we look to the year ahead, the emphasis on innovation will continue to shape procurement strategies. This makes it imperative for chief procurement officers (CPOs) to take proactive steps now to achieve their long-term goals.

As a result, many CPOs are increasingly turning to emerging technologies such as AI-driven technologies including GenAI, predictive analytics and conversational AI, all of which offer the potential to drive growth, productivity and agility within organizations.

In terms of where CPOs are most focused, according to a recent Gartner survey of procurement leaders, the top three technology priorities for investment are: data and analytics technologies, AI and generative AI technologies, and upgrading or optimizing the use of current technologies.

Let’s take a closer look at why these areas are the ones receiving the most attention and steps leaders can take to incorporate the trends into their organization.

1. Investing in data and analytics technologies

Data and analytics technologies have emerged as a cornerstone for modern procurement strategies, with 72% of CPOs identifying it as a top priority, and 27% ranking it as their first priority according to a Gartner survey. This focus underscores the growing importance of data-driven insights in shaping procurement decisions and strategies.

Procurement leaders recognize that robust data and analytics capabilities are essential for making informed decisions, optimizing supply chains, and predicting market trends. However, many organizations continue to grapple with challenges related to data quality and governance, which can impede their ability to leverage analytics effectively.

To harness the full potential of data and analytics, procurement technology leaders should first invest in improving data quality and governance. Establishing a strong data foundation is crucial before implementing advanced analytics technologies. Organizations should prioritize use cases that deliver the most value and develop strategies and policies to support their execution. Exploring technology solutions tailored to specific analytics use cases can further enhance procurement capabilities.

2. Investing in AI and generative AI technologies

The integration of AI and generative AI technologies is another significant priority, with 68% of CPOs highlighting it as a top focus area, and 24% citing it as their first priority. Despite this interest, only 14% of CPOs have fully implemented AI or GenAI, indicating substantial room for growth and innovation.

AI and generative AI offer transformative potential for procurement by automating routine tasks, enhancing decision-making, and enabling predictive insights. These technologies can streamline procurement processes, reduce costs, and improve supplier relationships. As AI capabilities continue to evolve, they present new opportunities for procurement organizations to differentiate themselves in the market.

Procurement technology leaders should explore various AI and GenAI use cases to identify those that align with their organizational goals. Prioritizing use cases based on feasibility and business value is essential for maximizing ROI. Leaders should consider piloting AI initiatives to test their effectiveness before scaling. Embracing a flexible approach that allows for quick pivots in response to challenges can help organizations capitalize on AI's potential.

3. Upgrading or optimizing the use of current technologies

With 60% of CPOs prioritizing the upgrading or optimization of existing technologies, this focus highlights the importance of maximizing the value of current investments while preparing for future innovations.

Optimizing existing technologies ensures that procurement organizations can maintain efficiency and competitiveness. By fully leveraging current solutions, organizations can achieve better outcomes and free up resources for investing in new technologies. This approach also helps mitigate risks associated with technology obsolescence.

To optimize current technologies, procurement leaders can conduct a thorough review of their technology portfolio to identify capability gaps. Collaborating with vendors to explore additional functionalities and future product improvements can enhance technology utilization. Engaging with users to identify training and adoption opportunities can further increase the effectiveness of existing solutions.

By focusing on these technology trends, CPOs will be in a better position to navigate the complexities of the digital landscape and deliver greater value to their organization.

About the author:

Kaitlynn Sommers is a part of the sourcing and procurement team within Gartner’s Supply Chain practice. She advises chief procurement officers and procurement technology leaders on digital transformation initiatives in procurement.

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