Public Procurement Teams Struggle with Costs, Compliance, and Tech Gaps
Event summary
- Euna Solutions' 2026 State of Public Procurement report highlights rising costs, compliance demands, and technology gaps as key challenges for government procurement teams.
- 74% of surveyed procurement professionals cite rising costs of goods and services as a top external challenge.
- 46% of respondents still manage procurement primarily through spreadsheets, email, or paper.
- 50% of respondents prioritize streamlined and automated processes, but budget constraints remain the leading obstacle to adopting procurement software.
- 39% of respondents want or are open to incorporating AI into procurement workflows, but only 17% expressed very or extremely high confidence in their readiness.
The big picture
The report underscores the growing pressures on public procurement teams, highlighting the need for modernization and automation to manage rising costs and compliance demands. As government agencies strive to improve efficiency and transparency, the adoption of AI and cloud-based solutions will be critical in transforming procurement processes. The findings suggest that while there is recognition of the need for innovation, significant barriers to implementation remain.
What we're watching
- Automation Adoption
- The pace at which public procurement teams can overcome budget constraints and resistance to change to adopt automation technologies.
- AI Integration
- Whether public sector organizations can build the necessary data infrastructure and readiness to responsibly adopt AI in procurement workflows.
- Strategic Influence
- How procurement teams can enhance their strategic influence within organizations to drive value and improve public services.