Rising costs and workplace challenges are worrying procurement workers everywhere

LovabledanielsJanuary 9, 202575 Views

Amazon Business report finds 64% predict higher budgets, but 44% are worried about rising costs
Economic growth predictions have dropped for 2025
Decision-makers want to use AI for spend analysis

Ongoing tough economic conditions are affecting how businesses spend their money both on its ecommerce platform and more broadly, new research has claimed.

Despite the potential for rising budgets, buyers are being met with rising costs that are preventing them from being able to spend more freely, a report from Amazon Business has found.

More than two in five (64%) of UK decision-makers predict higher budgets in 2025 compared with 2024, however nearly half (44%) countered that positive message by stating rising costs are a top external challenge.

Buyers are struggling with rising costs

Because of the cost-related challenges, leaders remain sceptical about how effectively they can managed their budgets.

Furthermore, the report reveals economic growth in the UK is now predicted to be 0.9% for 2025, down from previous indications that it could reach 1.1%.

Still, internal challenges are pushing decision-makers to spend on tech like AI and automation. Half (49%) cite efficiency and complexity as their primary challenge, with two in three viewing internal systems and processes as a major barrier.

An overwhelming majority (96%) plan to invest in AI tools, however they won’t all be destined for knowledge workers. Half (47%) plan to use artificial intelligence to guide their spend analysis in order to achieve financial efficiency as well as operational efficiency.

Moreover, striking the right balance between the above factors and sustainability has proven difficult. Despite two in three reporting an increase in C-suite-driven ESG goals, only 11% rank sustainability in purchasing as a top priority, down from 30% last year.

“While increased budgets present new opportunities, procurement teams need the tools and insights to navigate unexpected economic changes and streamline their operations to drive both immediate and long-term value,” noted Amazon Business UK Director and General Manager Amy Worth.