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Artificial Intelligence (AI) has promised a revolution in procurement for over a decade. Yet in 2025, AI in procurement lags behind expectations— despite rapid technological advancements and rising market urgency, many procurement teams remain stuck at the starting line.
The CPO Rising 2025 report by Ardent Partners, based on insights from 326 global procurement leaders, reveals a telling truth: while AI adoption is gaining traction, the vast majority of procurement teams remain in early, experimental, or siloed stages. Only 8% of enterprises have fully embedded AI into their Source-to-Pay platforms.
In this blog, we explore the reasons behind the slow adoption, the organizational and technological hurdles CPOs are facing, and how platforms like Zycus’ Merlin Agentic AI can help procurement teams move beyond pilots—and into transformation.
The Current Landscape of AI in Procurement
Recent studies indicate a significant interest in AI among procurement professionals. According to a Deloitte survey, 92% of Chief Procurement Officers (CPOs) are planning or assessing Generative AI capabilities. However, only 37% have moved beyond the planning phase to pilot or deploy AI solutions. This disparity highlights a cautious approach to AI adoption, with many organizations still evaluating its practical applications and benefits.
Why AI in Procurement Lags: Key Challenges Holding Teams Back
CPOs and procurement teams face several obstacles on their AI journey:
1. Poor Data Foundations
AI is only as powerful as the data it consumes. Many procurement systems suffer from:
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- Fragmented, siloed data across business units
- Poor classification of indirect spend
- Lack of real-time visibility
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2. Lack of AI Talent and Change Readiness
The CPO Rising 2025 report highlights that top-performing teams have stronger tech-savviness and are 2x more likely to have formal AI initiatives. Most others lack:
- Trained talent to manage AI projects
- Internal stakeholders who understand how AI works
- Executive sponsorship beyond cost-savings pressure
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3. Unclear Use Cases and ROI Pressure
Many organizations struggle to pinpoint where AI can truly make a difference. Without clear, ROI-linked pilots, momentum stalls.
Common missteps include:
- Overengineering early implementations
- Choosing processes without enough data or volume
- Expecting savings before systems mature
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The Promise of AI in Procurement
Despite these challenges, early adopters of AI in procurement report tangible benefits. Organizations utilizing AI have observed improvements in efficiency, cost savings, and decision-making capabilities. For instance, Zycus’ Merlin Agentic AI platform offers autonomous agents that handle various procurement tasks, from spend analysis to contract management, enabling procurement teams to focus on strategic initiatives.
Zycus’ Merlin Agentic AI: Bridging the Gap
Zycus has been at the forefront of integrating AI into procurement processes. The Merlin Agentic AI platform exemplifies how AI can be seamlessly embedded into procurement workflows:
- Merlin Intake: A conversational AI interface that streamlines procurement requests, ensuring compliance and efficiency.
- Autonomous Agents: Specialized AI agents handle tasks ranging from spend analysis to contract management, operating with minimal human intervention.
- Real-Time Analytics: Dashboards and reports provide actionable insights, enabling continuous improvement.
By leveraging these tools, organizations can transition from reactive procurement practices to a proactive, strategic approach.
Steps to Accelerate AI Adoption in Procurement
To move beyond the early stages of AI adoption, procurement leaders should consider the following steps:
- Assess Current Capabilities: Evaluate existing procurement processes to identify areas where AI can add value.
- Invest in Data Management: Ensure data is clean, structured, and accessible to facilitate effective AI integration.
- Develop Talent: Invest in training and hiring to build a team capable of managing and leveraging AI tools.
- Pilot AI Solutions: Start with small-scale pilots to demonstrate AI’s value and build momentum for broader implementation
- Engage Stakeholders: Communicate the benefits of AI to stakeholders to garner support and facilitate change management.
The procurement profession is at a tipping point. As AI matures and business expectations rise, the gap between leaders and laggards will only grow wider.
The CPO Rising 2025 report shows that the next wave of procurement advantage will come from intelligence—not just automation.
With Merlin Agentic AI, Zycus empowers CPOs and their teams to finally cross the chasm:
From experimentation → to enablement → to enterprise-wide impact.
Download the full CPO Rising 2025 Report: Ardent Partners x Zycus
Related Reads:
- How AI Is Reshaping Procurement: From Automation to Agentic Intelligence
- Navigating Tariffs and Trade Volatility: What Procurement Leaders Must Know
- CPO Priorities for 2025: Balancing Cost, Risk, and Digital Transformation
- Benchmarking Procurement Performance: Where Do You Stand in 2025?
- How Agentic AI is Creating Autonomous Procurement Teams?
- AI Agents in Procurement: A Comprehensive Guide
- The Invisible Revolution: How AI Agents-Integrated Procurement Systems Became Essential
- Autonomous AI Agents in Action: The Future of Procurement
