Insufficient Data Governance Policies Key Barrier to AI Adoption for Procurement Teams: Study

However, many organizations are working to develop internal AI capabilities.

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While 96% of procurement and IT teams are collaborating to some degree, 54% are not collaborating on AI governance, according to ProcureAbility’s The 2026 ProcureCon CPO-CIO Report.

The report, created in collaboration with ProcureCon, reveals the biggest data-related obstacle to AI adoption in procurement.

“For too long, procurement has operated downstream of technology decisions, tasked with execution, not influence,” says Darshan Deshmukh, president of ProcureAbility. “Today’s leaders are redefining that paradigm, elevating CPOs to the center of strategic decision-making and enterprise value creation. As the procurement groups are transitioning to AI-ready organizations, it’s critical that Procurement and IT are collaborating effectively to drive implementation and adoption.”

“AI is a powerful catalyst for transformation, but without the right guardrails, it creates as much risk as opportunity,” says Satyen Pathak, managing director-India at ProcureAbility. “Governance may feel like friction, yet it is precisely what empowers organizations to scale faster and act with confidence.”

Key takeaways:

 

·        36% of respondents rated insufficient data governance policies or standards as the biggest barrier to adoption. Following closely is limited internal skills to manage and analyze procurement data, with 26% of survey respondents citing this as the largest limiting factor. 

·        However, many organizations are working to develop internal AI capabilities. For example, 63% are encouraging self-directed learning through online courses or certifications; 60% are embedding IT or data specialists within the procurement team; and 54% are partnering with technology vendors for hands-on enablement. 

  • Of the 96% of teams that are collaborating, 51% are collaborating regularly and 45% are collaborating occasionally.
  • When IT and procurement departments do collaborate, the majority (54%) rate their collaboration as effectively or perfectly coordinated.
  • 53% of respondents report that their CPO and CIO are equal partners in technology procurement. 
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