Investment in procurement technology remained flat in 2024. But there is a push to take advantage of AI and the valuable insights it can provide.
Technology has the potential to transform the way in which businesses operate and procurement is no exception.
Armed with information around what organizations are spending and with which suppliers, procurement teams can set about ensuring they are obtaining value for money. That could lead to making decisions on switching suppliers, consolidating the number of suppliers used and taking steps to ensure spend is better controlled.
Such insight can also help teams channel spend through approved suppliers, which meet wider company mandates for responsible business and sustainability.
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The AI adoption gap:
challenges and future trends
Amazon Business’s 2025 State of Procurement Data Report provides glimpses into how technology is currently being used and the emphasis that procurement leaders now place on it.
When it comes to the use of artificial intelligence, the fall is more notable.
Only four in 10 (42%) of procurement functions use AI to optimize the decisions they make, and this usage has fallen by 5% over the past year.
Current State of AI
AI’s Outlook
AI, though, has potential to make even better use of data, providing quicker and more reliable information and even providing glimpses into likely future demand and pricing. It’s also vital in helping to identify risks, whether from overreliance on particular suppliers or regions or the financial health of individual organisations.
There are signs that investment in this area is coming. Investment intentions in AI are remarkably high across EU markets, ranging from 93% in Italy to 98% in France,
AI’s Concerns and Benefits
There is also an awareness of the risks that come from a greater use of AI and associated reliance on technology. While AI adoption is high on the agenda, procurement teams across the EU are focusing primarily on short-term cost reduction rather than strategic AI implementation, with markets like the UK (32%), France (43%) and Spain (40%) showing strong interest in learning more about AI's potential for advanced data analytics.
The benefits of AI for procurement teams and organizations, though, are evident. “Technology plays a critical role in managing today’s supply chains from embracing emerging technologies such as AI and machine learning to investing in procurement analytics and insights,” says Brenda Spoonemore, VP of commercial and public sectors at Amazon Business.
Use AI to optimize decisions
42%
It’s no surprise, then, that 68% of senior leaders and 61% of decision-makers see the use of AI to analyze data and optimize operations as very important and/or a top-three priority for the next two years. In fact, this was the most common top priority for senior leaders, reflecting this growing emphasis.
with specific focus on spend analysis (UK 47%, Spain 40%, Italy 38%) with the same number intending to develop capabilities in AI-driven spend analysis and AI automated procurement processes.
Only slightly fewer (37%) will use AI to help with supplier risk management and 36% intend to use AI-powered chatbots and virtual assistants.
— Technology Procurement Leader
”
“
Data cleanup is an area where AI is helpful, and we are also looking at AI in a couple of other areas including automation, contracts and purchase over management.
And 34% of senior leaders and
30% of decision-makers are worried about cyber-security threats.
”
“
This digital transformation is revolutionizing procurement, providing customers with greater efficiency, transparency and cost-savings.
— Brenda Spoonemore, VP of Commercial and Public Sectors at Amazon Business
Insights
The priority for generating better insights into spend and other data varies across EU markets with the UK leading at 64%, followed by Spain (59%), France and Italy (both 57%) and Germany (46%)
Efficiency
Nearly half of procurement leaders highlight efficiency and complexity as their primary challenge, with rates ranging from 42% in Spain to 49% in the UK and Germany.
Internal system inefficiencies are particularly prominent in France (64%), Italy (62%) and UK (60%).
Decision-makers
61%
68%
Senior leaders
Italy
93%
France
98%
UK
47%
France
40%
Italy
38%
36%
AI-powered chatbots
37%
Supplier Risk
Management
30%
Decision-makers
34%
Senior Leaders
UK
64%
Spain
59%
France
57%
Italy
57%
Germany
46%
Spain
42%
UK
49%
Germany
49%
France
64%
Italy
62%
UK
60%
Insights
Efficiency
To access Amazon Business’ 2025 State of Procurement Data Report, click here.