Zip State of Spend: 17% of Companies Now Require Proof AI Can’t Do Job Before Hiring Humans

October 08, 2025 at 08:00 AM EDT

Global study finds three-quarters of organizations now factor AI into hiring decisions as companies shift spending from people to technology

A new study reveals that artificial intelligence is now a factor in hiring decisions for 75% of organizations, with nearly one in five companies now requiring their managers to prove why they must hire a new employee and not use AI instead. The findings come from Zip’s inaugural “State of Spend” report, a global survey of 1,030 C-suite and senior decision-makers who control corporate spending across procurement, finance, IT, and operations, exposing a dramatic shift in how businesses are cutting costs on human labor in favor of AI capabilities.

“For the first time in history, companies are looking at everything through the lens of AI,” said Nick Heinzmann, Head of Research at Zip. “When they do hire people, companies are prioritizing AI fluency above all other skills, while cutting consultants and analysts across the board.” Heinzmann added: “Our data shows AI’s broadly anticipated impact on the workforce has now fully arrived.”

The evidence backs up this assessment. Zip’s research shows 70% of organizations are already testing or using AI in business operations – adoption rates that challenge assumptions about how slowly enterprises adopt new technology – though only 17% reported deploying it widely across multiple processes.

The numbers tell the story of how this AI-first mindset is changing spending priorities. At the top of their list, companies are cutting professional services such as consulting and legal advice, which represent 40% of reductions, along with temporary workers and contractors at 33% and travel and events at 34%. At the same time, technology spending is rising, with 37% planning to add new vendors, particularly AI tools. This shows companies aren’t simply slashing costs across the board, but deliberately shifting resources from people-dependent services to technology.

Key findings from Zip’s State of Spend include:

75% of companies now factor AI into hiring decisions, with 17% requiring proof that AI cannot perform the role before approving new positions.
AI fluency has become the top skill priority for 56% of executives over the next three years, displacing traditional business expertise.
IT departments are expecting to expand while other functions shrink, with 60% of business cases modeling flat or reduced headcount due to AI.
Technology spending is increasing despite people cuts, with 37% planning to add new vendors, particularly AI tools.
Company size determines AI strategy, with 80% expecting AI to reshape tech stacks but smaller companies planning overhauls while larger enterprises expect existing vendors to add AI features.
Confidence outpaces readiness, with 83% expressing optimism about AI deployment while most admit being only “somewhat prepared.”
Procurement’s value to business leaders is increasing, with 80% of respondents expecting procurement’s overall influence will increase over the next 5 years. The top three qualities people reported looking for in their procurement process are that it is user-friendly, connected across functions, and automated by AI.

What companies value in employees is also changing. AI fluency topped the list as the most valued skill in new hires, with 56% of those surveyed saying it topped all other skills, followed by data analysis at 43%. However, when ranking their second and third skill priorities, each business function emphasized distinctly human capabilities. For example, finance chose risk anticipation, procurement selected supplier relationships, and legal emphasized change management. This suggests a future where AI and data capabilities become baseline requirements while uniquely human skills like relationship management and strategic thinking provide competitive advantage.

The study was conducted in partnership with research firm Prolific and represents organizations across North America, Europe, and emerging markets. The complete report is available at https://ziphq.com/spend.

About the State of Spend

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.

About Zip

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. To learn more, visit ziphq.com.