Why AI-First Procurement Should Be on Your Radar in 2024
- AI, data analytics and low-code platforms are reshaping procurement and supply chain as a strategic advantage for enterprises.
- With inflation falling and supply chains experiencing stability, this is the right time to think long-term and invest in tools to enhance productivity and risk mitigation.
- Leaders will also need to upskill teams to ensure they can take advantage of AI tools, fostering human-centric approaches for critical thinking and strategic decision-making.
January 12, 2024 | Procurement Strategy
The crisis cycle of high demand, shortages and delays over the last few years finally seems to be over. Inflation appears to be (gradually) heading back to historical averages. Interest rates are likely to start falling as inflation retreats. Economists expect job markets in the G7 economies to become more balanced.
With adoption of artificial intelligence tools becoming more widespread, the relative stability make 2024 the perfect time for supply chain and procurement leaders to refocus on long-term planning and strategy.
Embracing AI Tools for Long-Term Planning
Forward-thinking leaders are already acting by investing in data analytics, AI-powered tools and low-code platforms to create the supply chains of the future.
Leaders must not only make the right investments in AI, but also invest in team capabilities to ensure that their people have the right skills to work in tandem with AI tools. An AI-first procurement function will also be human-centric at its core.
Data analytics, AI-powered tools and low-code platforms are not just the promises of the future; they are the reality today.
Artificial intelligence is reshaping procurement and supply chain processes, offering avenues for enhanced productivity, smarter spending decisions and more effective risk mitigation.
The Role of Artificial Intelligence
After years of anticipation, the era of AI-driven procurement is here.
Artificial intelligence is no longer a concept but a tangible set of tools that empower enterprises to optimize their operations. By leveraging AI, procurement leaders can gain valuable insights into market trends, supplier behaviors and potential risks. This predictive capability enables proactive decision-making, helping organizations stay ahead of disruptions and volatility in the supply chain.
Data Analytics: The Foundation for Informed Decision-Making
Investing in data analytics is a cornerstone of an AI-first procurement strategy. The ability to extract actionable insights from vast data sets empowers organizations to make informed decisions. Data analytics allow procurement professionals to identify cost-saving opportunities, optimize supplier relationships and enhance overall efficiency. In a landscape where data is a strategic asset, analytics becomes a competitive advantage.
Low-Code Platforms: Accelerating Transformation
Low-code platforms play a pivotal role in accelerating the implementation of AI solutions. These platforms empower business users, including those with limited coding expertise, to create applications and workflows.
For procurement teams, this means faster development of AI-driven tools tailored to their specific needs. Low-code platforms democratize technological transformation, enabling end users to actively participate in shaping the future of procurement and freeing up IT resources to focus on other tasks.
The Importance of Upskilling Teams for AI-First Procurement
While AI can help procurement teams realize unprecedented efficiency, an AI-first procurement function should be designed to augment, not replace human decision-making.
Leaders must recognize that successful integration requires investing not only in technology but also in upskilling their teams. The synergy of human expertise with AI tools creates a dynamic and adaptive procurement environment that enables human decision-makers to focus on the important work of value transformation, risk management, supplier relationships and bottom-line savings.
Investing in team capabilities ensures that professionals are equipped with the skills to collaborate effectively with AI tools. This upskilling is essential for fostering a harmonious interaction between human intuition and AI-driven insights.
Seizing the AI-First Future
As supply chains enter a phase of relative stability after the crises of the last few years, the time is ripe for procurement leaders to embrace an AI-first approach. The convergence of artificial intelligence, data analytics and low-code platforms presents an unparalleled opportunity to shape the supply chains of the future.
By making strategic investments in these technologies and concurrently upskilling their teams to take advantage of these new tools, leaders can position their supply chains for sustained success.
Want to learn more about the most important trends and opportunities shaping procurement and supply chain in 2024? Download the GEP Outlook 2024 report to get the insights you need to optimize procurement and supply chain operations this year.
