ProcureAbility's 2026 CPO Report Reveals the Top Barriers to AI Adoption Among Procurement Organizations

Only 11% of survey respondents report being "fully ready" to leverage AI

ST. PETERSBURG, Fla., Jan. 21, 2026 /PRNewswire/ -- ProcureAbility, the leading provider of procurement and supply chain services, today released "The 2026 Annual ProcureCon CPO Report." The report, created in partnership with ProcureCon, offers data and insights about the role of the Chief Procurement Officer (CPO) and the teams they lead. The report draws insights from survey responses submitted by select senior procurement professionals from a diverse array of industries.

The annual CPO report evaluates and records the continuous evolution of procurement roles, goals, and priorities. This year, ProcureAbility and ProcureCon's findings reveal strategic priorities for CPOs in 2026, their predicted biggest challenges over the next 12 months, and the three biggest barriers to AI readiness.

AI Implementation and Barriers to AI Readiness
Respondents were surveyed about their company's current readiness to leverage AI in procurement operations.

• 100% of procurement leaders reported some level of utilization of AI in their procurement operations.
• 65% of respondents considered their AI readiness "mostly ready," with clear AI strategies and active pilot solutions.
• Only 11% of respondents reported being "fully ready," leveraging existing AI solutions with measurable impacts.

The 89% of respondents that are not "fully ready" to implement AI identified three major barriers. The most common is concerns about data privacy and compliance, with 67% of respondents citing this as a barrier to AI implementation in procurement operations. 54% reported insufficient data quality and cross-system integration as limiting factors and 51% cited concerns about AI replacing human judgment in decision making and operations.

"Many organizations are still facing barriers to embracing AI. While these can feel daunting, the real opportunity lies in tackling them systematically—because every obstacle overcome isn't just progress, it's a step toward reshaping procurement's future and defining the leaders of tomorrow," stated Conrad Snover, CEO of ProcureAbility.

CPO Priorities and Challenges in 2026:
Respondents identified areas of focus and areas of concern for the year ahead.

• The top priority for CPOs in 2026 will be enhancing supplier relationships and strategic partnerships. 55% of respondents indicated this is a high priority; 42% of respondents indicated this is a moderate priority.
• The following top priorities are implementing AI-driven procurement automation (45%) and leveraging strategic sourcing and market intelligence to drive business growth (42%).
• The three primary challenges facing CPOs in 2026 are talent acquisition and retention (54%), balancing cost reduction and growth demands (52%), meeting sustainability and ESG compliance demands (46%).

"While procurement is currently undergoing a transformation led by AI, the function remains a people business. The investments organizations make in nurturing supplier, partner, and customer relationships continue to be vital in unlocking long‑term value," said Darshan Deshmukh, President of ProcureAbility.

The Evolving Role of the CPO:
The report identified four themes that reflect how the CPO role is evolving this year and in coming years.

• CPOs will continue to act as strategic leaders, demonstrating that procurement organizations are not transactional but instead are key drivers of success for businesses.
• CPOs will continue to be critical collaborators in an organization's interdepartmental sustainability efforts and will likely take on even larger roles in these efforts than in previous years.
• CPOs will drive AI governance standards among suppliers, leading their partner organizations toward quality data practices and responsible AI operations.
• CPOs will become key communicators for businesses, translating procurement insights into compelling stories for stakeholders.

These themes highlight a broader shift in procurement: the CPO role is increasingly recognized as a strategic leadership function—driving innovation, mitigating risk, and advancing enterprise objectives.

For more information or to access the full report, visit link.

About ProcureAbility
ProcureAbility is the leading provider of procurement and supply chain services, offering advisory, managed services, digital, staffing, and recruiting solutions. For 30 years, we have focused exclusively on helping clients elevate their procurement and supply chain functions.

We combine leading methodologies, analytics, market intelligence, and industry benchmarks with our uniquely flexible and customizable service delivery model. Global organizations of all sizes trust ProcureAbility to transform their procurement operations, drive growth, and reimagine what's possible.

Let ProcureAbility help you reimagine your procurement and supply chain capabilities. For more information, visit www.ProcureAbility.com.

Media Contact:
Kathleen M. Pomento
Chief Marketing Officer, ProcureAbility
[email protected]

SOURCE ProcureAbility