Deloitte: Can AI Help CPOs Simplify Complexity?
Procurement is not what it used to be.
According to Deloitte’s 12th Global Chief Procurement Officer (CPO) Survey, the role of the procurement leader is rapidly transforming – pushed by supply chain upheaval, shifting regulations and accelerating tech.
More than 250 CPOs across 40 countries offer a candid view of how the field is adapting and the direction is clear: digital procurement and AI are where leaders are placing their biggest bets.
Jennifer Brown, Offering Leader for Supply Chain and Network Operations at Deloitte, explains: "As the role of the chief procurement officer continues to evolve, these executives are increasingly recognised as indispensable, trusted advisors to the C-suite."
The survey paints a picture of CPOs who are not just responding to market chaos but actively reshaping their organisations to meet it.
From deploying autonomous tech to enhancing transparency across the supply chain, procurement is increasingly responsible for helping the business navigate uncertainty – and extract value along the way.
Procurement leaders embrace AI
One standout trend is the shift in how procurement functions are funded and structured.
The most digitally advanced group of CPOs, labelled 'Digital Masters' in the report, now allocate as much as 24% of their budget to technology – a jump from 2023 and expected to rise to 26% in the next financial year.
Much of this investment is going into generative AI (Gen AI) and agentic AI. Gen AI refers to artificial intelligence that can create new content or solutions based on patterns in data, while agentic AI refers to systems that can make autonomous decisions.
CPOs who are ahead in this space are already seeing results. Digital Masters report a 3.2x return on investment (ROI) on their Gen AI efforts, suggesting strong value creation through automation, forecasting and supplier engagement. Those still catching up, dubbed 'Followers', expect to see a 1.5x increase in ROI as they improve their capabilities.
What’s clear is that procurement’s digital transformation is no longer aspirational – it's well under way. Technology is not only streamlining procurement processes but allowing leaders to reimagine how procurement can operate inside their organisations.
Ryan Flynn, Principal at Deloitte, confirms the shift: "Procurement is at the forefront of managing increasing supply market complexity and successful CPOs know harnessing the power of digital and AI is helping drive resilience, efficiency and growth.”
Risk mitigation remains a core challenge
Despite growing digital investment, procurement leaders continue to wrestle with complex and fragmented supply environments. The survey identifies resilience as a top priority, with most CPOs implementing targeted risk strategies to manage uncertainty.
Among the most common measures are:
Maintaining active alternative supply sources (74%)
Increasing supply chain visibility (64%)
Improving collaboration and information-sharing with suppliers (61%)
However, internal challenges continue to hinder procurement’s effectiveness. More than half (57%) of survey respondents point to siloed working structures as a major obstacle to delivering value. Other recurring problems include competing business priorities (46%), insufficient tech capabilities or organisational support (40%), and a lack of skilled talent (34%).
These issues create friction between procurement and other business units, making it harder to align strategies or demonstrate the value of procurement-led initiatives.
The survey suggests that without deliberate investment in skills and a shift away from fragmented ways of working, procurement may struggle to meet its full potential. Yet even amid these limitations, AI is still seen as a path forward.
