Procurement leaders are doubling down on digital transformation in 2025, with budgets for Source-to-Pay (S2P) technology on the rise and AI adoption shifting from pilot projects to practice, according to Ardent Partners’ newly published State of Source-to-Pay Digitization 2025 report.
The second annual study, based on surveys of procurement executives worldwide, finds that 53% of Chief Procurement Officers (CPOs) increased their S2P technology budgets compared with last year—a sharp jump from just 30% in 2024. Nearly half (47%) also plan to adopt integrated S2P platforms to streamline operations and better manage supply chain complexity.
Procurement Priorities for 2025
CPOs are entering the year with a tough outlook: 90% expect 2025 to be more challenging than 2024. Their top three priorities reflect that pressure:
- Delivering cost savings (71%)
- Reducing supply risk (42%)
- Driving digital transformation (37%)
“As external challenges evolve and supply chains recalibrate from recent disruptions, organizations are re-evaluating costs, dependencies, and resilience. Procurement is once again stepping into the spotlight, with technology now central to business performance,” said Vishal Patel, SVP of Product Marketing at Ivalua.
AI Gains Ground in Procurement
The report highlights AI’s shift from hype to practical impact. Nearly half of CPOs now use AI in some form, and 72% expect its influence to be either transformational or significant. Common use cases include supplier discovery, spend analysis, sourcing, and contract review.
CPOs’ top AI objectives center on productivity and smarter decision-making:
- 79% cite productivity gains as the leading benefit
- 49% expect AI to enhance decision-making
- 40% point to efficiency gains
- 32% look for increased savings
- 30% cite improved stakeholder satisfaction
Still, leaders stress that success hinges on clean data, strong business cases, and thoughtful implementation.
Data: The Critical Enabler
Nearly half (48%) of procurement leaders see better data visibility and analytics as the most effective way to elevate performance. But poor data quality remains the leading barrier, with 42% citing it as the top obstacle to effective S2P technology.
“To fully realize AI’s promise and maximize its impact, organizations must treat data as a core enabler of transformation and innovation,” Patel said. “That requires investing in data quality, building AI literacy, and adopting integrated S2P platforms built on strong data foundations.”
Why It Matters
As procurement teams face global trade volatility, supply chain recalibration, and increasing regulatory pressure, the report underscores a clear trend: technology has become central to procurement’s ability to deliver resilience and value. AI and S2P platforms are no longer “nice-to-have”—they’re quickly becoming strategic requirements.
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