- An Amazon Business report finds that 64% predict higher budgets, but 44% are concerned about rising costs
- Economic growth predictions have fallen for 2025
- Decision makers want to use AI for spend analysis
The current difficult economic conditions are affecting the way businesses spend their money both on their e-commerce platform and more broadly, according to new research.
Despite the potential for increased budgets, shoppers face rising costs that are preventing them from spending more freely, according to an Amazon Business report.
More than two in five (64%) UK decision-makers predict higher budgets in 2025 compared to 2024, however almost half (44%) countered that positive message by stating that rising costs It is an important external challenge.
Buyers fight rising costs
Due to cost challenges, leaders remain skeptical about how effectively they can manage their budgets.
Additionally, the report reveals that economic growth in the UK is now forecast to be 0.9% by 2025, up from previous indications that it could reach 1.1%.
Still, internal challenges are pushing decision makers to spend on technology like artificial intelligence and automation. Half (49%) cite efficiency and complexity as their main challenge, and two in three consider internal systems and processes as a major barrier.
An overwhelming majority (96%) plan to invest in AI tools, although not all will be aimed at knowledge workers. Half (47%) plan to use artificial intelligence to guide their spend analysis to achieve financial and operational efficiency.
Furthermore, striking the right balance between the aforementioned factors and sustainability has proven difficult. Even though two in three report an increase in ESG goals driven by senior management, only 11% consider sustainability in procurement a top priority, up from 30% last year.
“While increasing budgets present new opportunities, procurement teams need the tools and insights to navigate unexpected economic shifts and optimize their operations to drive both immediate and long-term value,” said Amazon CEO and CEO Business UK, Amy Worth.
