AI IN PROCUREMENT
trends and disruptions . Leveraging data and AI technology , teams can discover and access smaller , emerging players that weren ’ t on their radar beforehand .”
Some companies only work with businesses they have a relationship with and may negotiate based on previous deals . However , they could be identifying new suppliers and incorporating external factors into their negotiations such as future trends and factors that may be impacting that supplier . Dhawan says : “ Data-driven negotiations like these lead to more robust ones that drive much more value .”
AI procurement professionals ? Asked about the anxiety-ridden misgivings of AI entirely subsuming human beings in procurement , Dhawan says : “ The extent to which AI will replace human professionals will vary according to the stage in the source-topay process .
“ Many aspects of transactional procurement ( P2P ) – such as invoicing , contract management , accounts payable – yield significant scope to AI , as the activities are repetitive . When it comes to more strategic activities like category strategy development , business requirement gathering and supplier management , however , AI will exist to support and accelerate human decision making rather than replace it .”
Dhawan ’ s position is that AI can provide procurement specialists with more time to automated and therefore necessitates some form of human intelligence ( HI ) – as well as the emotional intelligence that comes with it . This includes important activities such as fostering relationships with internal customers and suppliers .
“ A big component of the work done at The Smart Cube concerns uniting HI and AI ,”
“ CHASING AFTER THE LATE TECHNOLOGY SOLUTION ISN ’ T ALWAYS THE RIGHT THING TO DO . FACTORS SUCH AS ADOPTION , APPLICABILITY AND RETUR ON INVESTMENT ( ROI ) MUS BE TAKEN INTO ACCOUNT
PRERNA DHAWAN CHIEF SOLUTIONS OFFICER , THE SMART CUBE
56 March 2023