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Ivalua releases its Future of Work in Procurement survey, a US-focused study revealing shifting expectations surrounding the future landscape for procurement professionals as they embrace generative AI and upskilling.Â
According to the survey, procurement professionals have a positive outlook toward generative AI and its impact on the future of work. Seventy-five percent of respondents reported increased investment in generative AI, 67% noted increased automation and 72% observed improved data analysis and insights.Â
Forward-thinking organizations are upskilling talent and reshaping roles using generative AI, marking the evolution of procurement. As uncovered by Ivalua’s report, 60% of leaders believe generative AI will transform the job landscape by creating new roles and redefining existing ones. Additionally, 48% of respondents view this change as an opportunity, while only 11% see it as a threat, with the remaining 41% taking a neutral stance. These responses demonstrate an optimistic or balanced outlook toward using generative AI in the future.
“With generative AI, procurement can redirect effort from transactional to strategic activities, accelerating its shift from a back-office position to a highly strategic powerhouse within organizations,” says Alex Saric, CMO of Ivalua and smart procurement expert. “Greater automation of manual tasks and improved insights are enabling procurement to better manage risks, advance sustainability initiatives and optimize among competing priorities. But to unlock the promise of generative AI, organizations must address organizational hurdles, gain control of supplier data and improve interdepartmental communication.”Â
Key Takeaways:
- Organizations are proactively investing in the future of their workforce; 70% are investing in upskilling programs and 68% in reskilling initiatives, emphasizing the importance of advanced data analysis, emerging technologies and strong negotiation skills for future strategic value.
- Respondents have a strong sense of readiness, as 71% report their organizations are well-prepared to face the changes facing the future of work in procurement. Moreover, 60% believe their departments provide clear career advancement paths.
- While optimism about procurement’s future is evident, the function still faces challenges in fully embracing its strategic role. Effective collaboration between procurement and other departments remains hindered by several factors. The most significant obstacles include:
- Different departmental priorities (57%)
- Siloed information (44%)
- Lack of clear communication channels (22%)
- External challenges continue to weigh heavily on procurement professionals’ minds. Supply chain disruptions remain a primary concern, with over half (51%) of respondents worried about potential trade policy shifts following the 2024 US election. Geopolitical tensions also feature prominently, as one-third (33%) expressed concern about military tensions between China and Taiwan.