3 Key 2025 Trends for Chief Procurement Officers

As the pace of change continues to accelerate, chief procurement officers (CPOs) must respond with agility in reshaping their procurement strategies.

Chief procurement officers in 2025: The pressure is on

Procurement is at a crossroads. AI is growing more autonomous, protectionism is disrupting supply chains, and external forces — geopolitical shifts, energy crises and talent gaps — are reshaping the function. Chief procurement officers (CPOs) must move fast to stay ahead.

The 2025 Leadership Vision for Chief Procurement Officers highlights the top 3 strategic priorities Chief procurement officers need to tackle now to drive impact. Seventy-four percent of procurement leaders say their data isn’t AI-ready, limiting its potential to improve efficiencies and cost savings. As chief procurement officers navigate AI strategy, globalization shifts and talent transformation, preparing procurement for the future requires a proactive approach.

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    For today’s chief procurement officers, success demands a comprehensive, forward-thinking approach

    CPOs must adopt a forward-thinking approach to stay competitive. Anticipating future developments is essential in a rapidly evolving landscape. The following trends pinpoint crucial areas for procurement leaders to focus on, ensuring they adapt and thrive amid technological advancements, global shifts and changing workforce dynamics.

    Chief procurement officer trend No. 1: AI is becoming more agentic

    As AI technologies evolve, AI is becoming more agentic — meaning it is increasingly capable of autonomous decision making. But procurement’s low data maturity will limit agentic AI’s utility. Today’s procurement leaders must respond quickly to determine the implications of agentic AI on sourcing and procurement and define strategies for leveraging it. 

    Successful CPOs will work closely with data and analytics (D&A) leaders to make procurement data AI-ready, align it to AI use cases, set parameters for its governance and prepare pipelines to connect it with AI tools.

    Chief procurement officer trend No. 2: Protectionism is on the rise

    The global landscape is witnessing a resurgence of protectionist measures, challenging the principles of free trade and globalization. 

    To maintain a competitive advantage, CPOs must reevaluate supply chain strategies and adapt to a reglobalized environment. Successful procurement leaders balance traditional procurement priorities like cost, quality and speed with emerging stakeholder priorities like risk, innovation and sustainability via improved category strategies and smarter strategic sourcing.

    Chief procurement officer trend No. 3: External factors are transforming procurement roles

    Advancements in generative AI, generational shifts, energy, global divisions and regulatory complexity are reshaping procurement priorities and the roles necessary for procurement’s success. 

    According to the World Economic Forum, 23% of global jobs will change in the next five years. CPOs must close critical skills gaps and build new talent competencies to succeed in the future.

    While cost reduction remains a top priority, an increasing focus on sustainability and risk management marks the beginning of a new era for procurement. Leading procurement functions build capabilities and create accountability within their organizations through individualized talent strategies to prepare their teams for the future.

    How 2025 trends will impact chief procurement officer priorities

    CPOs must anticipate future challenges, define optimal organizational maturity and build resilience to mitigate risks that threaten success.

    2025 trends for chief procurement officers FAQs

    What are the responsibilities of a chief procurement officer?

    A chief procurement officer is responsible for setting procurement strategies, maintaining supplier relationships and ensuring a continuous supply of key goods or services. The CPO also oversees hiring and talent management activities within the procurement function.

    What is the difference between supply chain and procurement?

    Supply chain is the end-to-end process of creating and fulfilling customer demand for goods and/or services. Procurement is the process of sourcing and acquiring the supplies needed for the supply chain to function effectively.

    What are the priorities of a chief procurement officer?

    Procurement creates value in myriad ways: cost savings, quality, speed, risk management, sustainability and innovation. Against the backdrop of emerging AI capabilities, geopolitical uncertainties and a cascade of macroeconomic uncertainties, procurement leaders are rebalancing their priorities, investing in new technologies, creating more agile ways of working and rethinking the skill sets of procurement’s future.

    Drive stronger performance on your mission-critical priorities.