Procurement teams are expected to take on more work in 2026, even as staffing levels and budgets move in the opposite direction.
The Hackett Group’s 2026 Procurement Agenda and Key Issues Study projects an 8% increase in procurement activity next year. At the same time, headcount is expected to decline by 0.9%, and operating budgets are projected to fall by 0.4%. That imbalance creates what the firm describes as a significant productivity and efficiency gap.
To offset the pressure, organizations plan to increase procurement technology spending by 6.1% in 2026. The expectation is that technology, particularly AI-enabled tools, will help teams handle growing demand without adding headcount.
AI has quickly become a central part of procurement strategy. Deploying AI-enabled technology entered the top three procurement priorities for the first time this year. More than 70% of respondents report adopting generative AI, and more than half say they have deployed agentic AI.
Procurement leaders are also dealing with rising geopolitical risk and economic uncertainty, while companies expect more from their procurement teams. Ensuring supply continuity ranks as the top priority for 2026, followed by cost reduction.
At the same time, savings expectations are becoming more cautious. While 45% of procurement teams expect higher savings in 2026, a growing share now anticipates flat results, down from prior projections. Fewer teams expect increasing savings levels than in last year’s study.
Procurement teams report early gains from AI, including shorter cycle times, higher productivity, and improvements in quality and effectiveness. Many organizations are testing or deploying AI in areas such as contract management and intake management.
The study also notes that organizations are increasing technology spending as procurement activity rises while headcount and budgets decline.
