As the business world ushers in a new year, procurement leaders find themselves at a pivotal crossroads. From the uncertain market conditions of the past year has emerged a digital transformation trend that elevates artificial intelligence (AI) and automation from experimental tools to essential drivers of competitive advantage. Those who embraced these technologies early are reaping measurable benefits, positioning themselves ahead in the procurement landscape of 2025.
The past year was marked by the implementation of tools that were still in developmental phases, with 52% of procurement leaders adopting sourcing automation despite inherent risks. Their success has paved the way for others to follow, but the question remains: Who will rise to meet the challenge, and who will be left behind in an increasingly efficient and competitive environment?
The only certainty in today's market is uncertainty. According to the report Keelvar's Voices of Sourcing 2025 , 72% of procurement leaders identified market conditions as uncertain, a 50% increase from the previous year. While this sentiment has declined slightly to 40%,also 38% of leaders still believe the market has worsened. Key concerns include:
Procurement professionals must now adopt strategies that mitigate these challenges while addressing the industry's pressing needs for efficiency and cost savings.
Efficiency has become the top priority for procurement leaders navigating constrained resources. With cost inflation (62%), cost management (56%), workforce retention (38%), and sustainable solutions (33%) dominating their concerns, businesses face mounting pressure to adapt. Although hiring and retaining talent only comes in as a second priority objective, 49% finds it the biggest internal challenge, with increasing labor shortages within the industry.
Automation is increasingly viewed as the solution, with 52% of leaders reporting its adoption to save time, reduce costs, and enhance accuracy. This shift not only boosts productivity but also positions automation as a key differentiator in a competitive market. Interestingly, even among leaders yet to adopt these tools, the perceived value of automation mirrors the realized benefits seen by early adopters.
This divide underscores a growing gap: organizations leveraging automation and AI gain a strategic edge, while those resisting change risk falling further behind. According to our comprehensive survey conducted in collaboration with MLBKT, the level of automation and digitalization in the Hungarian market is significantly lower. While interest in AI and automation is growing, a large proportion of leaders have not yet made the decision to implement these technologies. The percentage of those planning to adopt AI solutions in Hungary remains below 20%.
Despite the clear benefits of automation, 60% of procurement leaders cite insufficient budgets as the primary barrier to adoption. This lack of funding often stems from a deeper issue: procurement's role is undervalued as a margin-generating function. Without recognition of its strategic importance, investment in process improvements remains limited.
Additionally, resistance to change hampers progress. Many decision-makers lack a clear understanding of automation's potential, citing concerns such as:
36% believe that the timing is not right for automation adoption
31% perceive that automation technology is still immature
31% are uncertain about direct benefits for the organization
27% fear losing control over procurement processes
21% worry about potential job losses due to automation
These challenges highlight the need for education and advocacy to demonstrate automation's transformative capabilities.
In the meantime, interest in AI is evolving. While 18% of leaders explored generative AI last year, that number has dropped to 15% as attention shifts to broader AI applications. Looking ahead, 39% of leaders plan to introduce some form of AI by 2025, reflecting its growing integration into procurement operations.
To tackle operational inefficiencies, a method organizations turn towards is centralizing procurement functions into Centers of Excellence (CoEs). In 2025:
This approach positions procurement as a strategic contributor to business growth.
Sustainability remains a top priority, with 33% of leaders ranking it as a key focus for 2025, second only to cost reduction. In contrast, supplier diversity—though growing in importance—lags behind, with only 15% prioritizing it, up from 12% last year. This indicates that while sustainability initiatives are gaining traction, diversity efforts still require greater attention.
33% of leaders rank sustainability as a key priority for 2025, emphasizing its growing importance in procurement strategies.
While growing in importance, supplier diversity is prioritized by only 15% of leaders, up from 12% the previous year, indicating room for improvement.
The Keelvar's Voices of Sourcing 2025 report underscores a stark divide between leaders embracing automation and those holding back due to funding and education gaps. This hesitation risks widening the gap between innovative and conservative organizations, creating a clear competitive advantage for early adopters. While sustainability is a trend well embraced by the industry, diversity is still somewhat overlooked.
At Fluenta Europe, we believe innovation is the key to navigating uncertainty and achieving lasting success. Our solutions empower businesses to adopt automation and AI with confidence, driving efficiency, reducing costs, and unlocking new opportunities.