Procurement under pressure

The research shows that procurement leaders are navigating a highly volatile landscape. Geopolitical instability has emerged as the number one organizational risk for the next 12 to 18 months, cited by 64% of respondents—nearly double last year’s figure. AI-related risks, such as data privacy, compliance, and bias, were named by 49%. Yet confidence is rising: 78% of executives expressed confidence in procurement’s ability to manage global risks, up sharply from 41% in the previous year.

From cost savings to strategic value

Although cost control remains central—43% of respondents still see it as the primary value procurement delivers—expectations are shifting. CFOs anticipate that over the next three to five years, sustainability (62%), AI integration (41%), and supply chain reconfiguration (37%) will become top priorities, while cost management will fall to only 17%. This marks a clear pivot: procurement must balance short-term financial discipline with long-term resilience and transformation.

Collaboration as a growth driver

Collaboration is emerging as a competitive advantage. Internally, 90% of executives say procurement collaborates effectively with other business functions, up from 75% last year. Externally, more than 90% highlight tangible benefits from supplier partnerships, including improved sustainability performance and increased supplier Innovation.

The digital frontier

Technology is another major driver of change. The study shows that 75% of executives already see improvements in cost optimization through AI, while 67% report better source-to-contract automation. However, fewer than 40% of organizations are systematically deploying generative AI tools. Experts caution that technology alone will not deliver transformation; success depends on orchestration, governance, and change management.

Sustainability and workforce transformation

Sustainability and workforce transformation are also shaping the agenda. ESG and carbon metrics are now the top KPIs procurement teams prioritize, reflecting regulatory pressures and rising stakeholder expectations. At the same time, talent requirements are evolving. AI proficiency and ethics is the most important skill for the next 12 to 18 months (68%), while sustainability capabilities lead over the medium term (59%).

Procurement at a crossroads

The report concludes that procurement stands at a crossroads. While cost optimization remains essential, leaders are increasingly judged on their ability to deliver resilience, sustainability, and innovation. The future of procurement lies in acting as an orchestrator: aligning internal stakeholders, enabling supplier ecosystems, and embedding technology to build resilience in an era of polycrisis.

Source: The Resilient Edge: Procurement in an Era of Polycrisis (Economist Impact, 2025)

Download the full report below.