Is it possible to put the AI in Procurement?

Are you ready to put the AI in Procurement?

AI is permeating its way into society. Have you noticed?

Netflix is the perfect example of AI or predictive learning we use daily. It obtains information on your watching history, learns by remembering your preferences, and recommends what to watch next. 

AI systems are designed to learn from previous experience and improve performance over time without being explicitly programmed. AI has numerous applications in various fields, including healthcare, finance, education, transportation, etc. It can potentially revolutionise how we live, work, and interact with the world around us.

According to a survey by Deloitte, nearly 65% of supply chain professionals believe that AI will have a significant impact on the supply chain in the next five years. In this article, we will explore how AI could become critical in global procurement and supply chains.

Is it possible to put the AI in Procurement?

Let’s take a moment to imagine an extreme way AI could be integrated into procurement software in the future.

Picture this: You walk into your office, and your computer greets you by name. It knows your coffee preferences and schedule and can even sense your mood. It asks how it can assist you today, and you reply, “I need to analyse our spend data from the past quarter.”

Without skipping a beat, with the help of Procurement AI, your computer generates a custom report with detailed insights and recommendations on how to optimise your spending. It identifies areas where you can negotiate better prices with suppliers, suggests alternative vendors, and even predicts potential risks in the supply chain.

But that’s not all. Your computer also manages all your contracts, automatically flagging discrepancies or issues. It tracks supplier performance, provides real-time updates on delivery times, and even suggests improvements to your procurement process based on best practices worldwide.

And if you ever need to communicate with suppliers or stakeholders, your computer uses natural language processing to generate custom messages or reports, saving you hours of time and effort. It even predicts how stakeholders will respond to your messages and suggests the best approach for each situation. You can sit back and relax!

With the rapid advancements in AI, endless possibilities are stepping closer to reality every day.