The Hackett Group® Reports Rapid Progress in Procurement’s AI Agenda
New study reveals AI deployment in procurement has nearly doubled year-over-year, with AI-enabled technology now a top three priority
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AI-enabled technology value realization
The research finds that deploying AI-enabled technology has risen into the top three procurement priorities for the first time, signaling a clear shift in how procurement leaders view its role in driving performance. Eighty percent of procurement executives now identify AI-enabled technology as the most transformational trend affecting the function over the next five years – outpacing automation, skills changes and other long-standing transformation drivers.
“Procurement is moving beyond isolated digital improvements and beginning to confront what AI really changes: how work gets done,” said
AI adoption accelerates – but scale remains limited
The study shows that AI adoption in procurement is accelerating rapidly, with 43% of organizations actively pursuing AI deployment – nearly double the level reported last year. However, only 12% report large-scale implementation, with most organizations still operating pilots or single-use-case deployments.
Current AI use is concentrated in areas such as contract management, market intelligence, and spend analytics, where AI augments decision-making and improves speed and visibility. Embedded AI capabilities within existing procurement platforms dominate transactional use cases, while AI-native solutions are emerging in more analytical and knowledge-intensive domains.
Sixty-nine percent of organizations access AI through capabilities embedded into their existing procurement platforms, particularly for transactional processes. However,
Early value centers on speed, productivity and effectiveness
Organizations that have begun deploying AI in procurement do report early gains primarily in cycle time reduction, productivity and effectiveness. These improvements are helping procurement teams respond more quickly to business needs at a time when workloads are rising and resources are tightening.
The study projects procurement workloads will increase by 8% in 2026, even as head count and operating budgets decline – intensifying pressure to move beyond traditional efficiency levers.
From pilots to agentic procurement
The research highlights a growing divide between organizations experimenting with AI and those beginning to reimagine procurement through an agentic enterprise lens. Leading teams are anchoring AI investments in procurement-specific priorities such as supply continuity, spend optimization, and strategic business enablement, while building the governance, talent, and process intelligence required to scale responsibly.
“AI is enabling procurement to elevate the value it delivers to the business,” said
The 2026 Procurement Key Issues Study provides a data-driven view of where procurement stands today – and what it will take to move from AI pilots to sustained, agentic performance. Download the report.
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