The most striking shift is organisational. One-third of respondents say the most senior procurement and supply leader reports directly to the CEO, managing director or owner. That is more than double the 15% reported in 2025. At the same time, the proportion reporting to finance has fallen from 41% to 25%. Procurement is no longer being treated primarily as a branch of the finance function.

This change is especially visible in organisations with fewer than 1,000 employees, where 44% of procurement leaders report directly to top leadership. It is also reflected in satisfaction: 69% now believe they have the most suitable reporting line, compared with 55% in 2025. In a period of geopolitical disruption, inflation, supply uncertainty and rapid technology change, supplier and market intelligence has become business intelligence. Leadership teams need people who can read those signals early and translate them into choices.

Procurement’s commercial reach is substantial. Two-thirds of respondents manage at least 60% of direct-goods spend, 29% manage more than 90%, and 14% manage all of it. More than half, 52%, say their influence over organisational spend is growing, while 39% say it is stable. Only 3% report a decline.

Three-quarters of organisations measure the function’s impact, and 62% regard procurement as a good return on investment. Yet 92% of those measuring impact still use money saved as a metric. Time saved is measured by 38%, approved suppliers by 35%, and ESG-compliant suppliers by 33%. This shows why the old perception of procurement as a cost-reduction function has been difficult to escape: the organisation often measures exactly that.

The report captures a useful change in tone around artificial intelligence. More than half of organisations are at least partly automated, but 44% describe their processes as not very automated or having very little automation. Respondents rate the effectiveness of their AI use at only 3.5 out of 7.

Expectations have also cooled sharply. The proportion anticipating greater operational efficiency from AI fell from 83% to 69%. Expectations for automation of manual work fell from 81% to 43%, and for improved productivity from 66% to 29%. This does not mean AI has lost relevance. In fact, planned investment in AI increased from 44% to 48%, making it the third most common investment area after digital technology and staff development.

The market appears to be moving from excitement to execution. Organisations are learning that AI value depends on foundations: clean and accessible data, consistent process design, connected systems, clear governance, skilled users and carefully selected use cases. Spend classification, contract analysis, supplier onboarding, risk sensing and scenario analysis can all create value, but only when they are embedded into real workflows and supported by human accountability.

For organisations operating across the Middle East, the report is especially relevant. Cross-border sourcing, supply concentration, trade-route volatility, rapid growth and localisation priorities can place procurement at the intersection of cost, continuity and national strategy. Yet only 47% of Middle East respondents described procurement as a good return on investment, below the 68% recorded in both Africa and the UK and Ireland.

This should be treated as a perception gap to investigate, not a verdict on performance. Leaders can respond by clarifying procurement’s mandate, agreeing a broader value scorecard with the C-suite, strengthening analytical and negotiation capability, and communicating outcomes in the language of the business. The goal is to make procurement’s contribution visible before a crisis, not only during one.

The CIPS Global State of Procurement & Supply 2026 is ultimately optimistic. Procurement is closer to leadership, its influence is generally rising, investment remains strong, and accountability is expanding. But the report does not describe a finished transformation. It describes a profession at a turning point.

The next stage will be defined by execution. Procurement must show that it can use technology responsibly, manage a wider risk landscape, embed sustainability in commercial decisions and communicate value beyond savings. For professionals looking to build these capabilities, relevant CIPS courses can provide a structured pathway for professional development. The organisations that make this shift will not see procurement as a support function called when something goes wrong. They will see it as a leadership capability that helps the business compete, adapt and grow.

Primary source: Chartered Institute of Procurement & Supply (CIPS), Global State of Procurement & Supply 2026, supported by GEP.