The real SaaS trend in 2025 isn’t growth — It’s intelligence

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In 2025, SaaS stacks are still expanding. But unlike previous years, this growth is not driven by just tool sprawl, but by intelligence. Buyers are now prioritizing tools that predict, automate and integrate over mere functionality, be it AI-native tools or traditional tools retrofitted with copilots.

To understand this shift, we dug deep.

Spendflo’s State of SaaS Procurement 2025 report analyzed tens of thousands of SaaS contracts and surveyed finance and procurement leaders across the US and UK to understand how SaaS is being bought and used by organizations. The data reveals a clear trend: SaaS buying is being redefined by AI-infused stacks, smarter vendor strategies and a growing demand for measurable ROI.

The real reason SaaS portfolios are growing

The report finds that the average organization has increased its tool count by 23% compared to previous year’s data. At first glance, that sounds like more of the same: the continued sprawl of software across departments. But a closer look shows the growth is not being driven by traditional tools; it is being driven by tools with intelligence built in.

Buyers today are seeking tools that integrate well with their existing systems and automate repetitive tasks. According to IDC, spending on AI-centric systems will surpass $300 billion globally in 2026, with much of that growth concentrated in enterprise software categories. SaaS tools are no longer just operational utilities — they are strategic assets.

And it is not just AI-native platforms taking off. Traditional SaaS tools are upping the game with AI copilots, predictive dashboards and automation layers that make them far more compelling in a crowded market. That is why the average tech stack is growing — not from redundancy, but from reinvention.

Budgets are growing, but so is accountability

The report clearly reflects the increasing trend that SaaS is not a fringe spend anymore. With cloud-based software now accounting for over 30% of total IT budgets, findings from our report echo the same trend. 45% of the surveyed companies now spend over $500,000 per year on SaaS, and 10% of them even exceed the $5 million mark.

However, spending alone does not equal value. CFOs are increasingly demanding proof of ROI before approving renewals or new purchases. That is where AI comes in again, giving procurement teams the ability to map usage to value, tie tools to outcomes and course-correct before it is too late. It is both powering the tools companies buy and the process through which they buy them.

Where intelligence still hasn’t landed

Despite the advancements in AI, many companies are still falling short on one of the most critical stages of the SaaS lifecycle: renewals. Our report revealed that 45% of finance leaders cite vendor price hikes as their biggest pain point during renewals, while another 40% say they struggle to negotiate better terms, despite evaluating vendor alternatives.

It gets worse. 30% of leaders admitted to missing renewal alerts altogether, resulting in auto-renewals and unnecessary spend. This signals a fundamental issue. While procurement at the point of purchase is becoming more strategic, the same rigor is not being applied once a contract is signed.

Renewals should not be reactive. They should be treated as high-leverage moments for cost savings and optimization. AI can, and should, play a bigger role here, helping teams analyze usage, flag risks and prepare negotiation strategies well in advance.

Procurement itself is becoming AI-enhanced

AI is also transforming the procurement process itself. It is not just embedded in the tools we buy. It is becoming the layer we use to buy smarter.

Procurement teams are starting to adopt AI-powered platforms that analyze license utilization, benchmark pricing in real time, summarize legal language and even recommend negotiation terms.

According to the State of SaaS Procurement 2025 report, 35% of procurement leaders are already investing in standalone AI solutions and 29% of them are bundling solutions with AI capabilities into their existing SaaS management platforms. That number is expected to rise rapidly as cost optimization becomes a top boardroom priority.

This shift has made procurement more predictive and contextual as AI-driven systems reduce human error and help finance teams speed up decision-making and vendor relationships with confidence.

What procurement leaders should be doing now

The writing is on the wall. We are entering an era of intelligent spend — not just in how we operate software, but in how we manage its lifecycle.

Procurement teams need to elevate from gatekeepers to enablers of strategy. That means embracing AI not as a threat to their judgment, but as a companion that enhances it. According to McKinsey, companies that adopt AI into core business functions can boost profitability by up to 20%.

So what’s next?

• Make renewal planning a quarterly habit, not a last-minute panic.
• Train teams in AI literacy — not just tool usage.
• Replace gut-feel procurement with data-led benchmarking.
• Consolidate vendor data into unified platforms with intelligence built in.

The shift from reactive procurement to intelligent procurement is not just nice to have; it is becoming table stakes.

Final thoughts

AI is not just transforming what SaaS tools do. It is transforming how we discover, assess and extract value from them. The smartest organizations are already adapting and leveraging AI for everything from license reclamation to predictive contract planning.

Those that resist this shift may find themselves locked into stacks they cannot justify, with renewals they cannot renegotiate and competitors moving faster thanks to AI-native workflows.

The future of SaaS procurement is here. It is not about buying more. It is about buying better.

Download the full report here

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