Source: financeyahoo
Eighty-four percent of procurement leaders believe a recession is already underway or imminent by the end of 2025, according to the 2025 AI in Procurement Index released today by Fairmarkit, a leading AI-powered autonomous sourcing solutions provider.
The report identifies four key pressure points shaping procurement’s future:
- AI Adoption is Outpacing Readiness: The majority (94%) of procurement leaders say their suppliers are already using AI in negotiations. While supplier adoption of AI soars, 43% of procurement leaders worry about relying on inaccurate or incomplete AI-generated data, and 39% fear AI could lock them into unfavorable deals in fast-moving negotiations.
- Economic Uncertainty is Raising the Stakes: Eighty-four percent of procurement leaders say a recession is already happening or will hit by the end of 2025.
- Culture, Cost, and Skills Gaps Are Slowing Progress: Ninety-one percent of organizations have an executive mandate to adopt AI, but obstacles remain that are slowing progress on AI adoption.
- Talent is Evolving, Not Disappearing: Rather than replacing jobs, AI is reshaping them, and the nature of the work itself. Forty-four percent of procurement leaders expect their teams to grow as a result of GenAI adoption, and only 5% anticipate reductions.
“Procurement isn’t just behind the curve – it’s being outmaneuvered by the very vendors they’re negotiating with. AI isn’t a ‘future opportunity’ for suppliers anymore. It’s standard practice,” said Kevin Frechette, CEO at Fairmarkit. “As recession fears loom and supplier sophistication rises, procurement can no longer afford to treat AI as a back-burner initiative. Those that act now can seize a competitive edge through faster operations, smarter negotiations, and more strategic decision-making.”
To learn how your organization can take practical actions to help procurement keep up with AI-driven suppliers and stay ahead of a recession fallout, read the complete 2025 AI in Procurement Index here.