While nearly three-quarters of organisations see Agentic AI as transformative, many admit their procurement functions are at a competitive disadvantage due to sluggish adoption
London, U.K., 5th June 2025. A new report from Ivalua, a global leader in spend management, has found that just a third (32%) of UK businesses have deployed AI tools in the procurement and supplier management function in the past 12 months. As such, over half of UK businesses (55%) say their procurement and supplier management function is at a competitive disadvantage due to sluggish AI adoption.
The report, From Risk to Resilience: Supercharging Procurement with Agentic AI, details the findings from a study of 300 supply chain and procurement decision-makers in the UK. It reveals that while 36% are in the process of implementing AI, almost a third (32%) are either considering adoption or have no plans to adopt AI at all.
This indicates a growing divide between businesses moving ahead with AI and those lagging behind, with those that have deployed AI already reaping the benefits, including improved data analysis for decision-making (85%), task automation (83%), and demand forecasting (79%).
“With rising costs, ongoing volatility in trade policies, and constant pressure to do more with less, slow adoption of AI isn’t just a missed opportunity, it’s becoming a strategic risk,” comments Alex Saric, Smart Procurement Expert at Ivalua. “While early adopters use agentic AI to streamline sourcing, automate supplier management, and unlock real-time insights, slower-moving businesses are grappling with outdated processes, limited visibility, and mounting inefficiencies. The message is clear: the longer organisations wait, the wider the AI gap becomes. As market leaders use AI to cut costs, negotiate smarter, and build resilience, those standing still risk being left behind for good.”
The next challenge: Agentic AI
Encouragingly, 74% of organisations plan to increase their budget for AI-powered procurement and supplier management tools over the next 12 months. However, with the rise of agentic AI, which 73% believe will transform procurement and supply chains, the gap between early adopters and the rest risks widening even further. Trust has also become a central issue, as more than half (52%) of respondents wouldn’t trust agentic AI to make critical decisions during a supply chain crisis.
“To get the most out of Agentic AI, procurement leaders must first lay a strong digital foundation – with consistent data, clear visibility across functions, and centralised policy enforcement,” continues Saric. “This foundation enables organisations to build better auditability and accountability into every stage of the Source-to-Pay process. The next step is driving adoption, optimising output quality, saying agile, and proactively managing compliance and security risks. With the right approach, procurement can go beyond automation – using Agentic AI to uncover deeper insights, react faster to risk, and deliver real strategic value.”
Find out more about how to maximise the potential of Agentic AI across procurement and supplier management in the full report.
About Ivalua
Ivalua is a leading provider of cloud-based, Spend Management software powered by AI agents. Our unified Source-to-Pay platform enables businesses to better manage all categories of spend and all suppliers, increasing profitability, improving sustainability, lowering risk and boosting employee productivity. We are trusted by hundreds of the world’s most admired brands and recognized as a leader by Gartner and other analysts. Learn more at www.ivalua.com. Follow us on LinkedIn.
Methodology
This survey was conducted by Sapio Research on behalf of Ivalua between March and April 2025. It is based on a survey of 300 supply chain and procurement decision-makers in the UK.
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