Are CPO’s Driving AI Innovation?

⇨ Icertis has published its annual ProcureCon CPO report based on research undertaken by WBR Insights.

⇨ The report found that 46 percent of CPOs are wielding influence in high-level decision-making compared to two years ago.

⇨ CPOs are at the forefront of technology adoption and AI initiatives with 44 percent of CPOs have led AI adoption efforts in the past 12 months, revealing their pivotal role as champions of innovation and transformation.

In a world where strategic decisions shape the trajectory of businesses, SAP users are striving to align their SAP technologies with seamless strategies for automation, AI and other innovative efforts. This is especially so when looking at the challenges that the procurement process might have during the turbulent yet innovative age of AI.

Addressing this, Icertis has published its annual ProcureCon CPO report based on research undertaken by WBR Insights. The 2024 report uncovers the transformation of Chief Procurement Officers (CPOs) into key influencers shaping company strategies and the role of AI in navigating challenges and opportunities related to procurement processes, technology implementations and sustainability initiatives.

The report found that 46 percent of CPOs are wielding influence in high-level decision-making compared to two years ago. More than half of procurement officers are prioritizing cost reduction and 46 percent are focused on proactive mitigation of supply chain risk, indicating an emphasis on streamlining operations to protect business outcomes and impact the bottom line.

Additionally, CPOs are at the forefront of technology adoption and AI initiatives with 44 percent of CPOs have led AI adoption efforts in the past 12 months, revealing their pivotal role as champions of innovation and transformation. In parallel, 27 percent express a need for enhanced CLM capabilities, presenting an opportunity for CPOs to realize the value of AI in contract-driven processes.

Finally, AI is essential for ESG goals, positioning procurement departments to lead sustainability initiatives. 86 percent of CPOs play a moderate to large role in driving sustainability decisions, with 46 percent prioritizing ESG and sustainability goals in 2024. 43 percent of procurement leaders are also enhancing capabilities to extract and interpret ESG metrics from data, underscoring a key opportunity for AI-powered contract intelligence to inform decision-making.

Bernadette Bulacan, Chief Evangelist, Icertis, said: “Especially in times of volatility and change, the organizational significance of the procurement department continues to grow, spanning contract creation and approvals to surfacing untapped savings, avoiding missed obligations, and ensuring ongoing compliance throughout supplier relationships.

“As the global regulatory landscape undergoes dynamic changes and businesses grapple with challenges like supply chain disruptions, inflation, ESG audits and market volatility, the expectations of CPOs have never been higher. This is a pivotal moment for procurement leaders to assert their influence, steering the organization and shaping business-critical initiatives with AI technology, particularly in contract management.”