A new report by SAP Taulia indicates that while artificial intelligence (AI) adoption accelerates across industries, procurement functions globally are lagging in AI investment compared to areas like finance, data analytics, and cybersecurity.
According to SAP Taulia’s “AI in Procurement Report,” which polled 600 senior decision-makers in procurement with responsibility over supply chains between August 7–14, 2025, only 35% of leaders are prioritizing procurement and supply chain management for AI investment and growth. This places procurement behind finance (43%), data analytics (39%), and cybersecurity (38%) in terms of prioritization. SAP Taulia is a global fintech leader specializing in AI-powered working capital solutions.
Despite this limited investment, procurement and supply chain professionals are increasingly leveraging AI tools. Over half (55%) are utilizing AI-powered procurement platforms such as SAP Joule, Ivalua, or JAGGAER, while 63% are employing generative AI platforms including ChatGPT, Gemini, or Microsoft Copilot. Among those using these tools, 90% of procurement leaders report that AI automation allows their roles to focus on higher-value activities like relationship management, risk oversight, and long-term value creation. Similarly, 88% believe AI frees up capacity for strategic work, and 87% state that data-driven insights enhance procurement’s influence in business decision-making.
The urgency for embracing AI in procurement is underscored by the fact that 72% of procurement professionals report increased demands on their function over the past year. Furthermore, 44% of these professionals believe AI will significantly impact solving these challenges, indicating a strong demand at the operational level that is not consistently reflected in leadership investment.
Procurement leaders largely agree on AI’s potential to deliver gains, identifying risk detection and mitigation (28%), data-led strategic decision-making (26%), and spend analysis and reporting (25%) as key areas. Many also anticipate AI will streamline sourcing and tendering, as well as automate invoice and payment processes (both 23%), allowing teams to focus on more strategic priorities.
Regional differences in AI prioritization are evident, with just 20% of leadership teams in the UK prioritizing AI investment in procurement. This contrasts with 44% in Australia, 41% in Singapore, and 37% in the USA. This data points to an uneven adoption curve and a persistent perception of procurement as an operational rather than strategic function.
Barriers to adoption include a low awareness or understanding of AI’s benefits among senior leadership, cited by over a third (35%) of procurement professionals. Senior leadership concerns for AI utilization include data security and compliance (36%), limited internal AI expertise (33%), lack of alignment with broader digital strategies (33%), and insufficient training (33%). Practical hurdles also involve workflow integration uncertainty (31%) and poor data quality (30%). A broader cultural issue—the perception that procurement is not strategic enough to warrant significant AI investment—was cited by 30% of professionals.
Danielle Weinblatt, Chief Product Officer at SAP Taulia, commented, “Procurement sits at the heart of business resilience and supply chain security. AI presents a tremendous opportunity to elevate procurement’s strategic impact—transforming how organizations manage risk, relationships, and working capital. The key is investing with both immediacy and long-term vision.”
John Roberts, Senior Director, North America Procurement, NTT DATA, stated, “The findings in this report validate what we see every day: AI is a powerful catalyst, and we’re using it to elevate procurement from a back-office function to a strategic partner to the business. As we automate tasks such as invoice processing and spend analysis, it’s not just about cutting costs; it’s about unlocking our team’s capacity to build resilient supply chains and use data for true risk detection. Procurement professionals can’t afford to be laggards in this new ‘industrial revolution’ —investing in AI for procurement is investing in the future agility and survival of the business.”
Ashifa Jumani, Director of Procurement at TELUS, added, “It’s a clear paradox – procurement leaders understand AI’s potential for strategic decision-making and higher-value work, but many functions are still overlooked in the wider investment strategy. To get past this, we need leadership to champion the ‘why’ behind AI, treating it as an augmentation tool that empowers our people, not as a threat. When we use AI to handle the routine, repetitive tasks, our teams are freed up to focus on strategy, the essential human skills, relationship-building, negotiation, and long-term value creation.”
