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    Blog Image

    7 Skills Procurement Leaders Need To Ride the AI Wave

    • The integration of AI is rapidly reshaping the procurement process, demanding new skill sets.
    • Key skills for procurement leaders in the age of AI include digital literacy, ethical awareness, analytical skills, and cybersecurity.
    • Embracing AI is crucial for procurement leaders, but understanding and managing its integration without sidelining human skills is also vital.

    October 11, 2023 | Procurement Strategy

    By Ralph De Groot

    Artificial intelligence (AI) is rapidly transforming various sectors, and unsurprisingly, procurement is no exception. The increasing integration of AI is streamlining the complex procurement process.

    Knowing how to use AI helps to untangle this complexity, by streamlining procurement data into usable information.

    With AI getting closely integrated into the procurement flow, skills in effectively handling AI for optimal use have become a necessity.

    This article will guide you in understanding how AI works to effectively augment the procurement process, especially if you are in a leadership position.

    7 Skills to Transform AI Management in Procurement

    1. Digital Literacy

    The most important skill that a procurement leader should develop is digital literacy.

    Artificial intelligence is a complex technology that streamlines the procurement process. Simply put, it makes it easier for a company to work on other important tasks.

    With this purpose, understanding how this technology works can help a procurement leader effectively handle scenarios that involve AI.

    Also, since digital literacy is a transferable skill, a procurement leader can be more engaging and hands-on. This improves the morale and workflow efficiency of the procurement team.

    7 Skills to Transform AI Management in Procurement

    2. Ethical Awareness and Decision-Making

    With companies increasingly adopting AI-powered technology, a procurement leader must make sure it is deployed responsibly.

    This is why they must ensure that standardized and regulatory practices are properly implemented. Procurement leaders should consider how it works well with their current standards and practices.

    Additionally, this technology is still young in the procurement world. A procurement leader with ethical integrity should serve as a testament to perseverance to others. It shows strength amidst the ever-changing technological terrain.

    3. Analytical skills

    Analytical skills prove the grit and mettle that a procurement leader is continually facing in the changing business world.

    It is crucial for one to effectively assess a situation, gather the necessary information, and evaluate the needs of the company.

    With AI, doing this is much easier.

    However, a procurement leader must not be lax with the comfort AI provides.

    When not in use, a blade gets dull, as they say. The same applies to the procurement analytical process.

    Effective procurement leaders must continually exercise attention to detail, and assess the scenarios they are facing.

    They are also responsible for leading the procurement team on the right path.

    AI is not a magic tool that can instantly learn what it needs to do. It also needs to understand that the procurement process is complex.

    4. Strategic Skills

    It’s crucial for procurement leaders to develop strategic skills.

    Thriving continuously for results and opportunities, the leader can set more plans and achieve more goals with AI.

    The augmentation that AI provides enables the procurement leader to think of more ways to be proactive in the workflow.

    Moreover, strategic skills in a procurement leader drive the team to achieve better results.

    The appeal of strategic procurement leaders can even entice new people to work with them. More so for someone who can incorporate technological advancements to make it easier for the team.

    Pairing it with analytical skills will make a procurement leader become formidable in the competitive business environment.

    5. Data Management

    Your database possesses valuable procurement data that gives the company its edge and identity in the business environment.

    Procurement leaders know how to harness and manage their databases and optimize the stored data into improving and strengthening their company.

    With the appeal of integrating AI in procurement database management, leaders equipped with sufficient skill augment theirs with the necessary technology.

    Effective procurement leaders do not simply integrate AI with precious procurement data.

    They ensure the technology they are employing can do its job well. In fact, enabling team members to learn how to effectively use ChatGPT in procurement is a great idea.

    Moreover, an unprepared incorporation of technology with database management can ruin the process.

    A procurement leader should always manage and exercise his or her skills of overseeing data and making sure the process moves smoothly.

    6. Cybersecurity and Risk Management

    A procurement leader knows how to handle and assess risks. With AI, these risks become more diverse and technology oriented.

    This skill enables a procurement leader to identify problems that can be avoided. It allows the leader to pinpoint suspicious areas in procurement dealings such as product quantity data, contract information, and provisions to clauses.

    AI may help streamline these processes and data, but the risk of technological breach arises with it.

    This is why a procurement leader should also be savvy with cybersecurity.

    To sum it up, modern problems require modern solutions. An effective procurement leader should always practice adaptability, as it helps him or her work through risks and unexpected dangers.

    7. Change Management

    AI is not meant to antagonize employees and replace them.

    Understandably, this is a hurdle that a good procurement leader must face. Given the growing impact of AI on businesses, there is a resistance against change.

    A procurement leader should effectively tackle this by using timely communication.

    By tackling AI fear-mongering, they can push through the procurement process effectively.

    Again, augmenting procurement processes with AI is not the same as replacing invaluable human skills.

    How Do You Develop These Skills?

    There are numerous ways for an effective procurement leader to further upskill themselves. Adapting to AI is important. These include:

    • Enrolling in procurement courses
    • Engaging with other procurement leaders
    • Tracking the procurement processes
    • Continuously applying one’s skills

    AI in Procurement

    Effective leaders lead the company by first equipping themselves with the necessary procurement skills the procurement team must learn from.

    Moreover, this also engages procurement leaders to be more hands-on with the procurement process, as it leans towards digitalization.

    This allows the procurement team to increase its value as it streamlines the various procurement processes in the company.

    Conclusion

    Developing procurement skills that adapt to AI is becoming necessary.

    Procurement leaders should take the initiative to enhance their procurement skills. This is to improve their team’s performance, and also the company’s performance.

    More and more businesses are moving toward a digitized procurement process. Thus, digital procurement skills have become crucial to optimize the company’s procurement process.

    The author is the founder of Procurement Tactics.

     

    Tags: AI , Procurement

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