Talent and Tech: A Human-Centred Future for Procurement

A report from Deloitte suggests the procurement function is at a “genuine inflection point".

The Deloitte Global Chief Procurement Officer (CPO) Survey for 2025, which gathers insights from over 250 Procurement Leaders, indicates that traditional objectives are becoming more difficult to achieve amid global pressures.

The report, authored by Jennifer Brown, Ryan Flynn, Clay Moran and Pierre Mitchell, explores how procurement departments are handling internal and external complexity alongside the disruptive potential of generative AI.

For HR leaders, the findings highlight a critical dependency on talent, digital skills and workforce strategy to achieve success.

The research from Deloitte categorises businesses as either 'Digital Masters' or 'Followers' based on their investments in technology and talent. It finds that digital transformation in procurement is fundamentally human-centric rather than purely technological.

According to the survey, businesses allocating around 20% of their budget to procurement technology are increasingly using digital capabilities for low-value tasks.

This approach allows these businesses to redeploy their employees towards higher-value strategic activities such as broad analytics and third-party risk management.

This strategy reinforces the idea that technology should augment human skills, complementing domain expertise and judgement.

Building digital-ready teams

The Deloitte survey reveals that attracting and retaining the necessary talent is a major hurdle: 45% of respondents report increased difficulty in recruiting staff, while 30% are facing challenges with retention.

In response, 'Digital Masters' are investing more in talent development, with training programmes focused on sourcing, category management and data analytics. This investment aims to bridge critical skills gaps, particularly in digital fluency, and strengthen business agility.

The results of these talent investments are tangible.

The report shows 'Digital Masters' outperform 'Followers' across all key procurement performance indicators:

• 96% achieve or exceed cost-saving targets compared to 80% of Followers
• 94% meet or exceed cost avoidance goals compared to 75% of Followers
• 84% succeed in stakeholder satisfaction and supplier performance compared to 59% of Followers
• Innovation enablement is achieved by 56% compared to 24% of Followers

These figures suggest that a combination of digitally-literate teams and targeted technology investment directly influences procurement performance and overall enterprise value.

Generative AI and the emerging skills gap

Generative AI is identified as a central component of next-generation procurement. 'Digital Masters' are allocating major investment to this area and achieving notable returns.

The survey finds that these high-performing businesses achieve an average 2.8x return on their Gen AI investments compared to 1.6x for 'Followers'. The value is primarily being derived from enhanced analytics and decision-making rather than productivity gains alone.

However, a considerable skills gap presents a challenge. The report states that just one-fifth of respondents have a strong understanding of Gen AI. The majority, at 71%, admit to having limited to moderate knowledge.

This highlights a pressing need for HR leaders to develop and implement targeted training initiatives to equip the workforce with the skills required to leverage these new technologies effectively.

Risk mitigation and workforce collaboration

Amid rising complexity, procurement’s role in safeguarding supply chains has grown.

According to the survey respondents, the most effective risk mitigation strategies include sourcing alternative supply options (74%), enhancing supply chain visibility (64%) and deepening collaboration with suppliers (61%).

'Digital Masters' are using technology-enabled capabilities such as analytics to anticipate disruptions. Yet the importance of human collaboration and information sharing remains central to building resilience.

Ultimately, the Deloitte survey reveals a function in transition, where success is increasingly defined by the synergy between people and technology.

Businesses that embrace digital transformation with a clear emphasis on developing their people, intelligently deploying Gen AI and fostering agile talent models are outperforming their peers.

Those who invest in both digital tools and the skills to use them are positioned not just to support their businesses but to become agents of change.