...

2025: The Year Procurement Transforms Forever with Agentic AI

Picture of Amit Shah

Amit Shah

Published On: 02/21/2025

Listen to this blog

procurement in 2025

Listen to this blog

For decades, procurement has been evolving—but 2025 marks the tipping point.

The last decade focused on digitization and automation, where organizations shifted from paper-based processes to digital procurement platforms. The next decade? It’s about intelligent autonomy.

We’re stepping into an era where Agentic AI is no longer theoretical—it’s essential. Procurement is transitioning from a function that manages costs to one that unlocks deep, strategic value—through AI-driven decision-making, autonomous workflows, and intelligent intake systems that eliminate friction, inefficiencies, and missed opportunities.

2025 isn’t just another year—it’s the year procurement transforms forever.

But why 2025?

Let’s break it down.

The Perfect Storm: Why AI is Reshaping Procurement in 2025

Unprecedented AI Maturity & Enterprise Readiness

Just two years ago, Generative AI (GenAI) took the world by storm, with technologies like ChatGPT, Bard, and Claude proving that AI could understand, generate, and process information like never before.

Fast forward to 2025, and we are witnessing:

AI in procurement is no longer a “future investment”—it’s a competitive necessity.

Download Whitepaper: Autonomous Negotiation Agents: The Future of Procurement

The Agentic AI Boom – From Assistance to Autonomy

Most procurement teams are familiar with AI-driven analytics and chat-based assistants that provide recommendations. But in 2025, Agentic AI is taking things further.

So, what’s the difference?

  • GenAI → Processes data, generates insights, assists human decision-making
  • Agentic AI → Acts autonomously, executes procurement workflows, makes multi-step decisions with minimal human intervention

By 2027, 50% of procurement tasks will be automated by AI agents (Gartner, 2024).

For procurement leaders, this means:

  • RFPs that are generated, evaluated, and awarded autonomously
  • AI agents negotiating contracts, identifying risks, and optimizing supplier terms
  • AI-powered intake ensuring 100% compliance, eliminating maverick spend

This isn’t speculation. This is happening now.

Download Whitepaper: Beyond GenAI – The Dawn of Agentic AI in Procurement

Economic Pressures & Cost Optimization Demands

Global cost pressures are intensifying—and procurement is at the center of cost optimization efforts.

A recent Deloitte CPO Survey (2024) highlights that:

  • 74% of CPOs cite cost reduction as their top priority for 2025
  • 65% say procurement needs better AI-driven spend visibility & compliance tracking
  • Only 23% of organizations currently use AI for contract negotiation & supplier optimization—a massive opportunity gap

Agentic AI is stepping in to fill this gap.

By automating negotiations, optimizing supplier engagement, and enabling AI-driven strategic sourcing, companies can unlock double-digit cost savings—without adding headcount.

This is why 2025 is pivotal:

AI is no longer just a way to improve efficiency—it’s the key to enterprise resilience.

Procurement Complexity is at an All-Time High

Procurement leaders face an increasingly complex supplier ecosystem:

  • Global supply chain disruptions continue (Bloomberg, 2024)
  • Geopolitical risks impact sourcing strategies
  • ESG & compliance mandates are stricter than ever

Manual, reactive procurement processes can’t keep up. AI-powered procurement can.

2025 will be the year that AI-driven procurement moves from “early adopters” to the mainstream.

Companies that don’t leverage AI-driven decision-making will struggle with compliance risks, cost inefficiencies, and slower time-to-market.

The Rise of Intelligent Intake: The Front Door to AI-Powered Procurement

The Problem: Procurement Adoption is Broken

One of the biggest challenges in procurement? Business users avoid procurement systems.

  • 90% of employees don’t understand procurement processes
  • 68% of procurement requests still happen via email & chat (ProcureTech, 2024)
  • 50% of procurement spend is still not fully tracked

The solution? AI-powered Intelligent Intake.

An AI-driven front door for procurement that:

  • Guides business users through the right buying channels
  • Reduces maverick spending & improves policy compliance
  • Eliminates manual approvals & processing delays

2025 is the year that procurement leaders fix adoption challenges—with built-in, AI-powered intake.

Companies that fail to adopt intelligent intake will continue to struggle with low adoption, non-compliance, and missed cost savings.

Want to hear firsthand how AI-powered procurement is revolutionizing enterprise operations?

Watch Zycus CEO Aatish Dedhia’s keynote on why Agentic AI and Intelligent Intake are unlocking deep value in procurement.

 

Real-World Impact: AI Agents Delivering 10X ROI

One of our Fortune 500 manufacturing customers recently implemented Zycus’ Autonomous Negotiation Agent.

  • Challenge: Managing 3,000+ tail-spend negotiations across global suppliers
  • Solution: AI-driven agent handled real-time supplier negotiations autonomously
  • Outcome: 2% savings across categories, translating into millions of dollars in savings

By 2026, autonomous AI agents will drive $1 trillion in business value across enterprises. (Forrester, 2024)

If your procurement function isn’t leveraging AI agents now, you’re leaving money on the table.

The Zycus Advantage: Why We’re Leading in Agentic AI

At Zycus, we’ve been pioneering AI in procurement since 2018—years before ChatGPT & mainstream AI adoption.

What sets us apart?

While competitors are cutting AI investments, we are doubling down—because the future of procurement is AI-powered.

What does the future of procurement look like? How should businesses prepare for the rise of AI agents?

In this exclusive interview with Procurement Magazine, Aatish Dedhia shares:
Why AI is no longer a futuristic concept—it’s a business imperative
How Agentic AI will reshape procurement roles over the next 3-5 years
What differentiates Zycus’ AI-driven solutions from competitors

The Future is Now: Are You Ready for 2025?

The rise of Agentic AI & Intelligent Intake marks the most profound shift procurement has seen in decades.

  • AI is no longer optional—it’s business-critical.
  • 2025 is the year AI becomes mainstream in procurement.
  • Companies that act now will lead. Those who wait will struggle to catch up.

At Zycus, we are ready to help you unlock deep value with AI-driven procurement.

Are you ready? Let’s connect.

Drop a comment or reach out to discuss how AI can transform your procurement operations.

Related Reads:

  1. Podcast: The AI Tipping Point: Will it Disrupt Procurement or Destroy It in 2025?
  2. Streamlining Sourcing: The Power of Autonomous Negotiation
  3. From Data to Decisions: How to Leverage AI for Smarter Sourcing
  4. 5 Key Benefits of Automating Tail Spend Management
  5. Why Mid-size Organizations Should Invest in Procurement Automation Now
  6. The Future of Sourcing: Autonomous Solutions for Procurement
  7. Beyond GenAI: The Dawn of Agentic AI
  8. Autonomous AI Negotiation Agents: Unlocking Millions from Missing Middle
  9. Artificial Intelligence use cases- Identifying and realizing the real value
  10. Solution: Generative AI Platform for Source to Pay Transformation
  11. Solution: GenAI-powered Procure to Pay Software

Watch the AI Agents Work – Live Demo of Merlin Agentic Platform in Action

Share:
Amit Shah
Amit is a seasoned business leader who brings to Zycus about 18 years of experience in strategic marketing and communications, business management, and strategy. As CMO and Head Global BD, he is responsible for all aspects of global marketing and demand generation. He also leads other strategic functions like sales ops, bid desk and sales enablement. Before joining Zycus, Amit was based in London and served as Managing Director at OakNorth, a B2B SAAS unicorn and supported large enterprise engagements across the US, Europe, and Australasia. Amit holds an MBA from IIM Mumbai and B.E from REC Surathkal (NIT Karnataka). He has also completed an executive program in strategic marketing from Stanford Graduate School of Business. He was recognized as 40under40 by Reputation Today in 2017, has been a Power Profile on LinkedIn in 2018 & 2016, and has served on the advisory board of S.P.Jain Institute of Management & Research and Fintech committee of FICCI.

Explore our latest Resources

Subscribe to Blogs!

Get the latest blogs, insights, tips and exclusive content delivered to you inbox, Join Now

Contact us today to know more about Zycus Deep Value Procurement AI

Name
Full name*
Company E-mail*
How can we help*