The Future of Work: Procurement’s Priorities on AI, ESG and Global Shifts

As 2025 unfolds, the world is undergoing a profound transformation driven by advancements in AI, geopolitical tensions, and climate change.

The World Economic Forumtrade war has emerged between the United States and its key partners—Canada, Mexico, and China—following the imposition of U.S. tariffs that directly impact these nations. In response, these countries have implemented retaliatory tariffs, adding to the uncertainty surrounding the long-term economic and political consequences, further deepening divisions on the global stage.

Consequently, the United States has also withdrawn from the Paris Agreement, an international treaty on climate change, which has led to weakened global climate commitments and strained diplomatic relations, particularly with key allies such as the European Union, Canada, and Japan, who remain committed to the accord. The decision also halted U.S. contributions to international climate finance, affecting developing nations relying on support from the Green Climate Fund.

Moreover, as AI continues to progress, concerns surrounding its usage have intensified. One of the most pressing issues is AI-driven misinformation and disinformation, which has been identified as the top global risk by 2027.

As these global shifts bring ongoing uncertainty, procurement professionals must confront a pressing question:

How can we adapt our strategies to stay ahead?

In 2025 and beyond, three key procurement priorities will take center stage.

1. The Growing Demand for AI Skills

Artificial intelligence is transforming industries, and while some procurement professionals may resist its integration, AI is becoming an unavoidable part of business operations.

The challenge lies in the uneven distribution of AI skills, which could widen economic disparities. To address this, a balanced approach is essential—one that focuses on equipping procurement professionals with the necessary skills while ensuring AI is implemented responsibly to enhance efficiency without diminishing the value of human expertise.

Procurement must adapt to AI as its role in business operations continues to expand rapidly. As highlighted in our 2025 Procurement Trends Report, companies that automate and implement AI tools without investing in upskilling may replace employees who struggle to keep up. To avoid this, businesses must invest in training programs that equip procurement professionals with AI knowledge and the skills to integrate AI ethically into procurement processes.

2. Navigating Procurement Uncertainty Amidst Global Trade Tensions and Tariffs

With rising tensions between nations, procurement professionals face challenges in responding to and managing the disruptions caused by global trade conflicts.

Tariffs are taking center stage in 2025. With additional tariffs in place, the cost of goods will inevitably rise, potentially limiting cost-saving opportunities that procurement teams have planned.

Given the ongoing uncertainty surrounding geopolitical tensions and trade wars, procurement professionals must take a proactive approach rather than passively waiting for events to unfold. This means continuously refining their skills to effectively mitigate or minimize the impact of tariffs on overall business operations.

3. Procurement’s Expanding Role in ESG

The procurement process is essential for companies to achieve their sustainability goals, yet it is often overlooked and underutilized. This is largely due to the challenge of balancing sustainability with maintaining high profit margins—a struggle many procurement professionals face.

To address this, procurement professionals must go beyond conventional sustainability strategies and implement effective and sustainable procurement practices. Effectiveness is about making a tangible impact, not engaging in the greenwashing that many companies have committed in the past.

It’s time to take real action—embedding sustainability into procurement processes in a way that drives meaningful change rather than serving as a superficial commitment.

Where Do We Go From Here?

The rising demand for AI skills, ongoing geopolitical uncertainties, and procurement’s expanding role in ESG call for a bold and strategic response. For procurement professionals, this complexity is not just a challenge but an opportunity to redefine the traditional role of procurement in an increasingly dynamic world.

The coming years will bring uncertainties and significant fluctuations, where procurement leaders have to act with courage, focus, and determination. Procurement must stand at the frontline, mitigating risks and minimizing the impact of these disruptions. As the future of work remains uncertain, the role of procurement professionals has never been more critical.

The question is: Will we take the lead in shaping change, or will we merely brace for the uncertainties others are predicting?

How We Can Help

At Procurement Tactics, we offer practical programs designed to help your procurement team navigate 2025’s challenges. Schedule a call with our team to discuss your challenges, we’re happy to consult you on what to do. We speak to hundreds of procurement directors every year and we are happy to share how others are tackling similar situations.

Popular courses

1. Our Sustainable Procurement Course covers the fundamentals of sustainability while providing strategies to balance sustainability initiatives with profitability.

2. We also offer specialized training to develop AI skills. Our ChatGPT & AI in Procurement Course and AI Prompt Engineering for Procurement Course cover both fundamental and advanced strategies for leveraging AI in procurement. These courses will equip you to adapt to AI-driven changes that are increasingly shaping business operations.

3. Our Value Chain Analysis Course, Spend Analysis Course, and Innovation in Procurement Course provide insights and strategies to help procurement teams identify cost-saving opportunities—especially valuable in an era of ongoing global trade uncertainties.