IT Procurement Trends Every CIO Should Watch in 2025

For the CIOs of the future (and the future-focused CIOs of today) fluency in data and infrastructure isn’t enough. They must also be drivers of value across the business — and that includes procurement. With rapid advances in AI and analytics, procurement apps are set to unlock new levels of agility, savings, and intelligence, reshaping how value is created, compliance is ensured, and decisions are made.

The tools, talent, and trends shaping this space are a microcosm of broader digital transformation. Get curious now, and you’ll be far better prepared to lead from the top.

Here are eight trends transforming procurement in 2025 — and what CIOs and tech buyers should consider as they look ahead:

1. Agentic AI Makes a Promising Debut
The latest AI software agents can set goals, make decisions, and take action through perception and reasoning in complex workflows. Procurement platforms are beginning to incorporate these agents to handle tasks like supplier communication, sourcing events, and contract execution with minimal human input. While early pilots are promising, we predict full adoption remains approximately eight years away. CIOs should monitor progress (but stay grounded) as many current tools claiming “agent” capabilities are still GenAI-powered assistants in disguise.

2. The CLM Renaissance
Contract lifecycle management (CLM) is experiencing a surge of investment. As enterprises move away from manual processes and disjointed spreadsheets, demand for robust, AI-enhanced CLM solutions is rising. GenAI capabilities such as clause discovery, contract summarization, and risk scoring enhance these platforms’ ability to surface insights and accelerate negotiations. Vendors that combine automation with deep customization will stand out. (Watch for IDC’s first-ever CLM Market Share and Forecast reports in late 2025.)

3. Savings Resurface as a Top Priority
While recent post-pandemic years shifted procurement’s focus to resilience, sustainability, and supply chain visibility, 2025 marks a return to its core mandate: savings. Cost optimization is again front and center, pushing CIOs and procurement leaders to prioritize solutions that help identify, capture, and measure savings opportunities. As inflation pressures linger and budgets tighten, expect increased scrutiny on software vendor selection and stronger alignment between IT sourcing and financial outcomes. (See also: CIOs could improve sustainability with data center purchasing decisions — but don’t.)

4. Non-Traditional Tech Providers Enter the Fray
New players are entering the procurement tech space — and they don’t look like traditional providers. From cloud platform giants to AI startups, a wave of companies is building or acquiring procurement capabilities to disrupt the status quo. IDC’s updated forecast predicts the procurement application market will grow at a five-year CAGR of 10.6%, driven by AI adoption and demand for compliant, transparent spend management. This influx of competition will give buyers more choice, but also more complexity to manage.

5. The Procurement Role Evolves Again
As procurement platforms become more intelligent and autonomous, so must the professionals who use them. Manual tasks like invoice tracking and sourcing coordination will be increasingly handled by AI, freeing up time for strategic work. Forward-looking organizations will invest in upskilling their teams to become procurement agent developers, optimizers, or engineers: roles focused on configuring and maximizing AI systems rather than executing transactional tasks. This evolution will fundamentally shift procurement from process executor to value architect. (See also: How Tech Leaders Are Using AI to Solve 10 Procurement Challenges.)

6. Direct Spend Steps Up
Despite making up more than half of many organizations’ total spend, direct procurement has long been under-supported by technology. That’s changing fast. Point solution providers are now targeting direct spend with AI-infused tools that integrate tightly with ERP and supply chain platforms. These applications are purpose-built to manage the complexity of raw materials, manufacturing inputs, and supplier logistics. As demand for transparency and resilience grows, CIOs should elevate direct spend management on their digital roadmaps.

7. Spend Orchestration Becomes More Sophisticated
Spend orchestration — an emerging category that brings visibility and control across the entire procurement lifecycle — is gaining traction. Initially viewed as a niche or complementary function, these platforms are evolving to take on broader responsibilities, including analytics, CLM, and supplier relationship management. Some may even replace traditional S2P systems. As the space matures, we expect providers to differentiate by vertical focus and integration capabilities. CIOs seeking unified, AI-driven oversight of enterprise spend should take note. (See also: How AI is empowering tech leaders — and transforming procurement.)

8. Choice Will Multiply — And So Will Complexity
While some buyers leaned toward full-suite solutions in recent years, new point solutions offering predictive intelligence and intuitive interfaces are now challenging that dominance. As the number of options grows, so does the challenge of evaluating what’s real, what’s hype, and what fits best. CIOs must strengthen their sourcing strategies to navigate a crowded, fast-changing market.

Takeaways for CIOs and Tech Leaders
Procurement technology is evolving into a dynamic engine of transformation, fueled by AI and innovation:

• Agentic AI is a game-changer in the making, but realistic expectations and pilot-phase validation are critical. Test claims of agentic AI rigorously and prioritize vendors with a clear roadmap and track record.
• Savings delivery is once again the north star, and procurement platforms must be evaluated with this renewed focus in mind.
 • Pay special attention to solutions for direct spend and evaluate their ERP integration capabilities.
• New entrants and point solutions are flooding the market, offering both opportunity (and overload).
• Roles, skills, and strategies around procurement will continue to shift as technology assumes greater responsibility. Offer training to procurement talent to stay competitive.

And, finally,

• Regularly reassess your procurement tech stack and remain agile  as the market continues to expand and reshape.

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