A procurement team sits around a table. AI bots have auto-summarised supplier proposals overnight, flagged hidden risks in draft contracts, and even suggested new vendors based on market shifts no analyst could have spotted manually.

It’s efficient. It’s fast. It’s impressive.

But then a decision looms.

Which supplier do they trust to co-develop a critical new product? The data is rich, but the answer isn’t obvious. It demands judgment, creativity, and the ability to see beyond the spreadsheets.

And suddenly, all eyes turn, not to the AI dashboards, but to the human professionals at the table.

This is the new reality CPOs across Australia and New Zealand are stepping into.

AI is not replacing procurement. It’s redefining what procurement excellence looks like, blending hard data with soft skills, machine-driven insights with human strategy.

In this article, we’ll explore how procurement capabilities are shifting, what skills CPOs must build, practical tips to future-proof your team, common traps to avoid, and how to take the first step toward your procurement dream team.

The Shift – Procurement’s New Capability Landscape

How AI is Rewiring Procurement Skills – What’s Changing and What’s Staying

Since 2023, artificial intelligence, particularly generative AI, has moved procurement from evolution to revolution. Yet, amid all the change, one truth remains clear: AI is augmenting procurement, not replacing it. The human core of strategic procurement is not going away; it’s getting smarter, faster, and more data enabled.

CPOs in Australia and New Zealand are witnessing two parallel shifts. First, enduring capabilities like strategic judgment, supplier relationship management, stakeholder engagement, governance, and market expertise continue to anchor procurement teams. These human strengths provide the ethical oversight, trust-building, and contextual decision-making that AI tools simply cannot replicate.

At the same time, a new set of emerging capabilities is rising rapidly. Data literacy, AI tool fluency, adaptability to new technologies, risk management in algorithmic environments, and cross-functional collaboration have become critical skills. Procurement professionals are moving beyond manual tasks to interpret AI-driven insights, oversee digital procurement bots, and integrate AI safely into their ecosystems.

This dual capability landscape demands that CPOs lead a shift: embedding AI literacy and tech acumen without losing the human judgment and creativity that define strategic procurement. Those who get this balance right will future-proof their teams for the AI-augmented economy.

Tips for CPOs – Building Tomorrow’s Procurement Team Today

Practical Strategies to Future-Proof Your Procurement Capability in the AI Era

As AI reshapes procurement, the question for CPOs is not just how to adopt technology, but how to build teams that thrive alongside it. Future-ready procurement functions will blend enduring human strengths with emerging AI-driven skills.

Here’s how CPOs can take decisive action today:

Tip 1: Conduct a Procurement Skills Gap Analysis

Before investing in new tools or training, start with a clear-eyed view of where your team’s capabilities stand today, and where they need to evolve. A skills gap analysis tailored to the AI-augmented procurement landscape is essential.

Key actions:

1. Map your current team capabilities using an established framework, identifying traditional strengths like negotiation, category management, and compliance oversight.
2. Overlay emerging capability requirements, such as AI literacy, data interpretation, and digital risk management.
3. Define target role profiles for 2025, blending strategic thinking with AI fluency.
4. Prioritise development areas based on business goals: Are you aiming for faster sourcing? Smarter contract management? Proactive supplier innovation?

Tip 2: Blend Learning Methods Using the 70/20/10 Model

Once you know the gaps, design learning programs that are fit for the modern workforce, practical, flexible, and embedded in daily work. The 70/20/10 learning model is ideal for building future procurement capabilities at scale.

Apply it as follows:

70% On-the-Job Experience:

• Assign team members to lead AI pilot projects (e.g., trailing an AI-based spend analysis tool).
• Rotate roles to give exposure to new tech (e.g., contract AI review systems).

20% Social and Peer Learning:

• Facilitate cross-team knowledge sharing through AI “use case showcases” or “learning circles.”
• Create internal mentorship programs pairing tech-savvy staff with others.

10% Formal Education:

• Invest in short, targeted training on AI basics, ethical considerations, and digital procurement strategy.
• Provide access to eLearning platforms, certifications, and AI bootcamps for procurement professionals.

Tip 3: Prioritise AI Literacy, Not Just Tech Skills

Procurement teams don’t need to become data scientists, but they must develop AI literacy.

Understanding how AI tools work, what they can and cannot do, and how to interpret outputs is now as fundamental as understanding basic finance or contract law.

Key focus areas:

• Using AI tools effectively: How to structure prompts or queries to get meaningful results from AI platforms.
• Interpreting AI outputs critically: Recognising when AI recommendations need human validation.
• Understanding AI’s ethical limitations: Knowing where bias, hallucinations, or incomplete data might lead AI astray.

Traps to Avoid – Where CPOs Risk Falling Behind

Common Mistakes in Procurement’s AI, and How to Dodge Them

While the opportunities AI offers procurement are immense, so too are the risks of missteps. Many CPOs unknowingly fall into traps that slow progress, erode trust, or limit the full potential of AI adoption.

Here are the four major pitfalls to avoid:

Trap 1: Thinking AI Will Replace the Need for Strategic Thinking

One of the biggest misconceptions is that AI will “do the thinking” for procurement teams. It won’t.

AI can automate tasks, generate options, and highlight trends, but it cannot make strategic decisions, weigh competing priorities, or understand organisational nuances.

CPOs who treat AI as a decision-maker risk poor choices that don’t align with business goals or stakeholder needs. Strategic thinking, balancing cost, risk, innovation, and relationships, remains a distinctly human responsibility.

Watch out for:

• Over-reliance on AI-generated recommendations without critical review.
• Assuming AI understands broader business strategy or context automatically.
• Delegating strategic supplier decisions or negotiation strategies entirely to systems.

Trap 2: Ignoring Ethical and Bias Risks in AI Procurement Tools

AI systems are only as good as the data and logic that shape them. Without careful oversight, procurement AI can embed or even amplify biases, such as unfairly favouring certain suppliers, misclassifying spend, or introducing hidden compliance risks.

CPOs who blindly trust AI outputs without human validation expose their organisations to ethical, legal, and reputational damage.

Watch out for:

• AI models trained on biased or incomplete historical procurement data.
• Lack of transparency in how AI makes recommendations or flags risks.
• Failing to audit AI-driven decisions for fairness, accuracy, and compliance.

Trap 3: Overlooking Informal Learning Opportunities

When it comes to AI upskilling, many CPOs default to formal training programs, expensive courses, certificates, or external seminars. These have their place but relying solely on them is a missed opportunity.

AI fluency grows fastest through informal, everyday learning: mentorships, team experimentation, quick peer workshops, and “learn by doing” projects.

Watch out for:

• Treating learning as a one-off event rather than a continuous process.
• Over-indexing on formal training while ignoring peer-led or on-the-job learning.
• Assuming certification equals capability; real-world practice matters more.

Trap 4: Treating AI Adoption as a “Procurement-Only” Project

AI in procurement doesn’t happen in a vacuum.

It affects, and depends on, multiple functions: IT (for tool integration and data pipelines), Legal (for compliance and risk oversight), Finance (for budget alignment), and even end-users across business units.

CPOs who try to “own” AI adoption in isolation often face stalled projects, underutilised tools, or organisational pushback.

Watch out for:

• Implementing AI without IT and data architecture alignment.
• Ignoring legal teams’ input on AI contract risks and governance.
• Rolling out AI self-service tools without involving end-users in design and testing.

Shaping Your Procurement Dream Team for 2025

Your Roadmap to Building a High-Performance Procurement Team for the AI Future

The procurement function of 2025 won’t be defined by technology alone, it will be defined by the teams that know how to harness it. Future-ready procurement teams will blend the timeless strengths of strategic judgment, supplier relationship mastery, and ethical governance with new-age skills like data fluency, AI literacy, and change agility.

It will come from building teams that can think critically alongside AI, validate its outputs, and use its insights to drive smarter, faster, and more ethical decisions. In this new landscape, human creativity, empathy, and negotiation skills remain irreplaceable, they are simply enhanced by the speed and scale that AI offers.

For CPOs, the message is clear: start now, even if you start small.

Whether it’s running a mini skills gap survey, piloting an AI-driven sourcing tool, or launching an AI literacy workshop, the key is to begin embedding these future-focused capabilities today. Every small step builds momentum, and momentum will be a competitive advantage.

The future isn’t waiting. Neither should you.

Ready to boost your procurement team?

At Comprara, we help CPOs and procurement leaders design future-proof teams through:

• Strategic Capability Frameworks aligned to AI-augmented procurement roles
• Skills Gap Assessments (SGAs) that reveal hidden capability risks and opportunities
• Training and Learning Roadmaps to drive real behavioural change and resilience

Contact us today to start building the skills, mindsets, and structures your procurement team needs.

Get in Touch with Comprara