2024 ProcureCon CPO Report Identifies Evolution in CPO Roles, Showcasing the Impact of AI on Procurement Strategy and Technology Adoption
Icertis, the contract intelligence company that pushes the boundaries of what’s possible with contract lifecycle management (CLM), has published the 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.
Recommended AI News: Riding on the Generative AI Hype, CDP Needs a New Definition in 2024
Survey respondents included supply chain, procurement, and risk management leaders from companies across the U.S. and Canada in industry sectors spanning manufacturing, pharmaceutical, aerospace, automotive, and more.
Key findings from the 2024 CPO Report include:
- Procurement teams are a strategic arm for driving value. 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.
- CPOs are at the forefront of technology adoption and AI initiatives. 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.
- 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.
Recommended AI News: Red Hat Developer Hub Now Generally Available
“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,” said Bernadette Bulacan, Chief Evangelist, Icertis. “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.”
Recommended AI News: NetSuite Helps Retailers Unlock Data to Drive Growth
[To share your insights with us, please write to sghosh@martechseries.com]
Comments are closed.