A new study from Zip reveals that artificial intelligence is influencing hiring decisions in 75% of organizations, with nearly one in five requiring managers to justify new hires over AI alternatives. The inaugural "State of Spend" report, based on a global survey of 1,030 C-suite and senior decision-makers, highlights a profound shift toward AI-driven cost efficiencies in procurement, finance, IT, and operations.
75% of organizations now consider AI in hiring decisions.
17% require proof that AI cannot replace a new role.
AI fluency tops skills priorities for 56% of executives.
70% are testing or using AI in business operations.
Technology spending rises with 37% adding AI vendors.
Procurement influence expected to grow for 80% of leaders.
The report exposes how businesses are reevaluating workforce needs through an AI lens. As Nick Heinzmann, Head of Research at Zip, stated, “For the first time in history, companies are looking at everything through the lens of AI. When they do hire people, companies are prioritizing AI fluency above all other skills.” This mindset is leading to reduced reliance on human labor, with companies cutting costs on consultants, analysts, and temporary workers while investing in AI capabilities.
Organizations are strategically redirecting resources, slashing professional services like consulting and legal advice by 40%, temporary workers by 33%, and travel by 34%. In contrast, technology budgets are expanding, with 37% planning to onboard new AI vendors. This deliberate pivot from people-dependent services to AI tools underscores a broader trend in enterprise cost management.
Zip's findings challenge notions of slow enterprise tech adoption, showing 70% of organizations already testing or deploying AI, though only 17% have scaled it widely. IT departments anticipate growth amid shrinking headcounts elsewhere, with 60% of business cases projecting flat or reduced staffing due to AI efficiencies. Company size influences strategies: smaller firms plan tech stack overhauls, while larger ones expect vendors to integrate AI features.
AI fluency emerges as the premier skill for new hires, cited by 56% of executives, surpassing traditional expertise. Data analysis follows at 43%. Yet, secondary priorities highlight human strengths—finance values risk anticipation, procurement emphasizes supplier relationships, and legal prioritizes change management. This blend suggests AI as a baseline, with uniquely human traits driving competitive edges.
The study signals procurement's growing influence, with 80% anticipating increased impact over five years. Leaders seek user-friendly, cross-functional, and AI-automated processes. Despite 83% optimism about AI deployment, most organizations report only "somewhat prepared" readiness, revealing a confidence gap in scaling innovations.
Zip's State of Spend report illustrates AI's arrival as a workforce disruptor, reshaping hiring, spending, and operations. As businesses prioritize AI fluency and efficiency, they balance technology investments with irreplaceable human capabilities to fuel sustainable growth.
The State of Spend is based on a global survey of 1,030 senior leaders across procurement, finance, IT, operations, legal, and risk functions. The report analyzes how organizations are approaching AI adoption, spending priorities, and workforce planning to provide a data-backed view of the forces reshaping enterprise operations.
Zip is the world’s leading agentic procurement orchestration platform, empowering businesses to accelerate the procurement process, mitigate risk, and drive growth by offering a single front door to unify the teams, tasks, and tools involved in working with suppliers. With Zip, businesses can maximize employee adoption of purchasing policies and increase spend visibility and control. As the leading solution for optimizing business spend, Zip’s AI-powered platform is trusted by hundreds of leading enterprises worldwide, including AMD, Anthropic, Coinbase, Discover, Dollar Tree, HP, Instacart, Invesco, Lyft, Northwestern Mutual, Prudential, Reddit, Sephora, and Snowflake to maximize the ROI of every dollar.
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