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In short: Procurement teams face persistent cost pressure, market volatility and talent shortages, and AI and automation have become the most practical way to respond. Keelvar's Voices of Sourcing research found that 52% of procurement leaders already use sourcing automation, and those who have not adopted it yet expect the same benefits that early adopters report. The main barriers are budget (cited by 60%), unclear benefits and fear of losing control, not the technology itself. In Hungary the gap is wider: our survey with MLBKT found that 56% of organizations have implemented no AI at all. Closing it starts with one measurable process, clean data and clear goals.
For years, AI and automation in procurement were treated as experiments: interesting to pilot, easy to postpone. That has changed. With constant price pressure, unpredictable markets and a shrinking talent pool, teams that rely on email, spreadsheets and manual approvals simply cannot keep up. Organizations that automated early now handle more volume with the same people and make faster, better documented decisions. The rest are finding that the distance keeps growing.
Uncertainty has become the normal operating condition for procurement. In Keelvar's Voices of Sourcing 2025 report, 72% of procurement leaders described market conditions as uncertain, and 38% said the market had worsened. Their most frequent concerns were:
None of these can be solved by working harder. They require faster market analysis, more frequent tendering and better visibility into supplier performance, which is exactly where automation pays off.
When resources are tight, efficiency becomes the top priority. In the same research, procurement leaders named cost inflation (62%), cost management (56%), workforce retention (38%) and sustainable solutions (33%) as their main concerns, and 49% saw hiring and retaining talent as their biggest internal challenge.
Automation answers several of these at once. 52% of leaders reported using sourcing automation to save time, reduce costs and improve accuracy. Notably, leaders who had not yet adopted these tools expected the same benefits that early adopters were already seeing. The value is no longer in question; the real question is who captures it first.
Our survey with MLBKT shows that Hungarian procurement is further behind. 56% of the surveyed organizations have implemented no AI solution at all, only 10% use AI regularly, and 80% still run tenders over email even when they have a procurement system. Interest in AI and automation is growing, but most decisions to actually implement are still ahead.
The most common barrier is money: 60% of procurement leaders cite insufficient budget. Behind that usually sits a deeper problem. Procurement is still often seen as a cost center rather than a function that protects margin, so investment in its processes is hard to justify.
Hesitation plays a role too. Decision-makers who had not adopted automation gave these reasons:
Most of these are knowledge gaps rather than real obstacles. Automation does not take control away from buyers: approval workflows, audit trails and rule-based decisions usually make processes more transparent than email ever was.
Attention is also shifting from generative AI experiments to broader, practical AI applications: bid comparison, supplier risk monitoring, invoice matching and AI agents that complete routine steps on their own. Many organizations combine this with centralization, building procurement centers of excellence to standardize processes, manage spend and develop category strategies. In Keelvar's research, 46% of leaders planned to reduce operating costs this way.
Together, these changes turn procurement into a strategic contributor instead of an administrative function.
AI and automation are no longer optional extras in procurement. The data shows a clear divide between organizations that have built them into daily work and those still waiting for the right moment, and that divide keeps growing. The barriers are mostly budget, knowledge and trust, and all three can be addressed with a focused start, clean data and measurable results.
1. Why are AI and automation now considered essential in procurement?
Because the pressures procurement faces, such as price volatility, cost inflation and talent shortages, cannot be handled with manual processes alone. Automation lets the same team handle more volume, react faster to market changes and document decisions better. Keelvar's research found that 52% of procurement leaders already use sourcing automation.
2. What is the biggest barrier to adoption?
Budget. 60% of procurement leaders cite insufficient funding, often because procurement is not yet seen as a function that protects margin. Uncertain benefits, the perceived immaturity of the technology and fear of losing control follow.
3. Does automation mean losing control over procurement decisions?
No. Well-designed automation keeps buyers in charge of decisions that need judgment and handles repetitive steps with clear rules, approvals and audit trails. In practice, processes become more transparent than email-based work.
4. How does Hungarian procurement compare internationally?
It is behind. Our survey with MLBKT found that 56% of Hungarian organizations have implemented no AI at all, only 10% use it regularly, and 80% still run tenders over email.
5. Where should an organization start?
With one clearly measurable process, such as tendering or invoice matching, combined with data cleansing and defined goals. Early, visible results make it easier to secure budget for the next step.
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