2. Leveraging technology and AI

The integration of technology and AI into procurement processes is non-negotiable for leaders aiming to stay ahead. The survey indicates that 95% of CPOs are involved in digital transformation initiatives, including next-generation technologies such as GenAI. 

The survey also found that “digital masters”—the organizations that have made effective investments in digital transformation, AI, and upskilling talent—deploy GenAI at 2x the rate of their peers and realize double the return on investment (ROI). This is significantly higher than “follower” organizations. Digital masters also invest more in procurement technology and are more likely to leverage best of breed solutions.

Solutions such as Coupa’s AI-native platform can help organizations become digital masters by leveraging AI to enhance spend management. Coupa’s SpendGuard™ and Contract Intelligence can better equip procurement teams to optimize processes and mitigate risks.

As CPOs increasingly focus on AI, they should also consider how AI can help execute the specific tasks that keep their teams busy. Doing so helps empower procurement professionals to focus on the work that matters most and drive greater strategic value.

“Implementation is only the beginning of the journey,” said Tricia. “You’ve accomplished something through technology or AI deployment but if you don’t add an investment in people to sustain gains, they won’t grow and may even slide backwards.”

3. Investing in talent and capabilities

High-performing organizations have made significant investments in talent development.  CPOs identify digital skills as the most prominent competency gap, emphasizing the need for teams to both implement new technologies and leverage them effectively. High performers differentiate themselves by prioritizing digital capability development and business partnering in their training programs.

Consulting skills rank as the second most critical gap, reflecting the evolving role of procurement professionals. As one CPO noted, “in procurement, you need to sell more than you buy.” This shift requires teams to “sell” the procurement team’s ability to deliver value to the business internally, so they can influence demand management, develop innovative contracting strategies, and drive business innovation—skills that go beyond traditional supplier negotiations. 

By investing in talent development alongside technology, procurement functions can enhance their strategic influence and drive greater business impact.

Talent development priorities

CPOs identified their single biggest skill or competency gap:

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