You can’t watch a news broadcast or flick through your social media feed or without seeing and hearing about generative AI, and how it will transform the way we work, bringing new efficiencies and enabling people and teams to accomplish more. According to this report from Accenture, 98% of global executives say that AI-driven platforms and tools will play a key role in their organizations over the coming years.
But how exactly is this game-changing technology going to affect procurement and what does every sourcing leader need to be aware of so that they can ensure they are ahead of the curve when it comes to using generative AI to improve and enhance their buying model? Read on to find out the top three things that you must know to ensure your company gains competitive advantage at this pivotal moment for procurement:
1. Learn fast – Deep dive into generative AI use cases in procurement
As we find ourselves at what must be the peak of the generative AI hype cycle, it is crucial to have a clear understanding of the benefits of this new technology for the sourcing function and how utilizing it effectively will enable companies of all sizes to better manage their spend, delivering new efficiencies and savings. Familiarize yourself with the way in which Generative-AI powered technology can engage in conversations and assist in answering procurement-related questions, while guiding users along the right buying path, considering various sourcing types and leveraging deep category expertise to create best-in-class project briefs quickly and easily.
When researching vendors who are utilizing generative AI, it is also important for procurement leaders to ensure that 1: the software’s infrastructure is reputable and enterprise grade such as MSFT Azure and 2: the user experience is where AI provides suggestions and it is up to the users (whether a procurement team member or a business stakeholder) to make the ultimate decision giving them the ultimate control.
2. Go hands-on – Experience the power of AI in procurement
The best way to truly understand the transformative potential power of AI within procurement is to dive right in and experience how bots that Gartner describes as Cognitive Procurement Advisors (CPA) or Virtual Personal Assistants (VPAs) leverage Natural Language Processing (NLP) to increase automation and deliver new sourcing efficiencies and increased productivity across the buying process.
For example, Chief Procurement Officers who have implemented GLO’s generative AI capabilities share how they have catapulted into the future to drive productivity and purpose and how they consider GLO to be their new virtual team member.
As AI bends the productivity curve by introducing new efficiencies, capabilities, and insights into every aspect of a business’ operations, procurement as a function has a unique opportunity to make huge impact by using this new technology to automate and optimize a company’s spend to advance its mission and purpose.
AI-first applications that are well-developed, with exceptional user experience (UX), should enable you to quickly try them and experience their value. This eliminates the need for lengthy traditional assessment processes when evaluating enterprise solutions. Being hands-on and familiar with the technology will also enable you to advocate within the organization, influencing and driving successful adoption leading to improved business outcomes more quickly.
3. Act now – Don’t be left behind
The power of generative AI far outweighs any previous technological advances – we are experiencing an acceleration in software innovation and adoption unlike anything seen before. Adopting a wait-and-see approach is not an option in this case as companies who fail to seize the moment and start utilizing generative AI right away will fall behind their competition – and with the potential of the technology to deliver dramatic savings and increase efficiencies many times over, if you fall behind you won’t be able to catch up on this occasion.
With the arrival of generative AI, this technology is no longer seen as a futuristic concept but rather as a vital tool for businesses to stay relevant and competitive in an ever-changing and challenging landscape. Gartner’s recent research revealed that 70% of companies are already experimenting with generative AI use cases and leading companies including BT and Santander are using our AI-powered platform to deliver double-digit cost savings across more than $3 Billion of their indirect spend.
If you are interested in seeing a compelling generative AI use case for procurement and how enterprise companies are already utilizing it to deliver cost savings and increased efficiencies, reach out to us here.