Procurement Trends and Predictions to Watch in 2026

Over the years, Procurement has been on the same evolutionary journey as many other business functions; from its beginnings in the growth of factories during the industrial revolution, to the modern-day AI-assisted processes. Henri Fayol, French engineer and visionary of business management and strategy, was right when he said…

"Knowing how to buy and sell is as important as knowing how to manufacture well…"

Over 100 years have passed since Henri's words of wisdom were first spoken, yet they remain as accurate as ever. Efficient and effective procurement remains essential to modern businesses.

Strategic Development

Skill Dynamics' Head of Procurement Development, Helen Alder, shares that, as we move into 2026, procurement will be characterised by AI processes and workflows that are built from the ground up, rapid digital transformation, regionalised supply strategies, and heightened ESG and regulatory demands.

Organisations will see a shift from experimentation to scaled automation, supported by stronger data governance and risk frameworks, with supply chains rebalancing globally as existing (and yet unknown) geopolitical and resource pressures force diversification.

Procurement's role will become increasingly strategic, requiring new skills and integrated digital ecosystems, but what trends will fuel these changes?

1. AI-Native Procurement

The first, and perhaps largest, trend fueling change in the year ahead is, of course, Artificial Intelligence.

AI-native procurement sees workflows and business processes designed from the ground up with AI as the primary engine. With AI at their core, procurement platforms will see automation move from pilots to scaled, agent-driven workflows across sourcing, risk monitoring, and contract management.

As Richard Beaumont writes in our latest whitepaper, 'Human Intelligence in the Age of AI: Rebuilding Procurement Capability' (available soon), procurement is at a tipping point; AI is widespread. As AI native procurement strengthens its position, the only thing left to do is ensure that your organization's Human Intelligence (HI) isn't left behind.

2. AI Governance & Responsible Use

In the same vein, human-in-the-loop models become essential as AI regulation accelerates. Formal oversight, transparency, and operational knowledge have become key for human procurement professionals working alongside and managing AI.

3. Digital Control Towers & Composable Tech

Procurement is moving away from big, rigid systems and toward flexible, plug-and-play tools. Agentic AI helps connect these systems, pull data together in real time, and alert teams when something needs attention.

Procurement digital control towers link procurement processes together into a single centralized solution with whole-spectrum visibility. Purchasing demands can be seen across entire businesses rather than individual departments, allowing more effective decision making and value generation, while optimizing ROI.

4. Regionalized & Diversified Supply Networks

Another potential trend to keep an eye on is the increased use of 'nearshoring', also known as 'friend-shoring' or 'allyshoring', a supply chain strategy whereby a country or company shifts their sourcing and production to political friendly, economically aligned, or trusted partner countries. Generally aimed at reducing reliance on rivals, and securing resources against geopolitical risks, the increased volatility of the recent past and not-so-distant future is triggering the regionalization and diversification of supply networks.

5. Predictive Supplier Risk Management

The impacts of continuous monitoring using AI and external intelligence is one of procurements biggest drivers behind the shift from reactive processes to proactive management.

6. ESG as a Contractual Obligation

2024's landmark law by the EU, the Corporate Sustainability Due Diligence Directive (CSDDD), with initial entry in force by July 2025, and an ever-approaching transposition deadline by July 2028, is just one of the many new laws in this growing regulatory area. As such, you can expect sustainability, human rights, and compliance metrics to become enforceable through supplier contacts.

Explore our free resource to help you evaluate suppliers systematically.

7. Cybersecurity in the Supply Chain

The expansion of digital ecosystems in procurement results in the need to safeguard supplier data and conduct stricter due diligence. As AI's rapid development continues to dominate, cybersecurity becomes an ever-increasing concern in every business area including procurement.

8. Region‑Specific Procurement Playbooks

With external pressures such as the aforementioned EU regulatory changes, US onshoring incentives, APAC manufacturing growth, and the natural resources in Latin America becoming increasingly important to global supply chains, the development of region-specific procurement playbooks is likely to increase.

Procurement teams will need more comprehensive knowledge across areas, or different team members will need to specialize in different areas.

Talent Evolution

The amalgamation of all these changes results in an increasingly complex operating environment for procurement teams.

Data literacy, AI governance, supplier ecosystem management and strategic negotiation begin to define modern procurement roles.

Platforms such as Skill Dynamics' Procurement Academy become outlets for businesses looking to upskill and invest in their employees, helping to ensure continued growth and success. Courses on AI, negotiation, regulations, and strategy become the norm for organizations trying to keep up and get ahead of the curve.