How will Artificial Intelligence Impact Public Sector Procurement?
A perspective from Philip Gurnett, procurement expert and advocate for change and reform in public sector procurement.
I am excited about the potential impact of Digitalisation and Artificial Intelligence (AI) on our Industry.
Artificial intelligence has been growing at a steady pace in the technological world over the past few years and is becoming widely utilised in all aspects of our lives.
The increasing development of artificial intelligence such as chatbots and automation have capabilities to optimise procurement efficiency and effectiveness.
- Automating Tasks: With AI platforms, data processing, price comparison, and vendor selection can all be automated.
- Enhancing Supplier Management: AI can provide insights into supplier performance, risk, and compliance, enabling more informed decisions about which suppliers to establish relationships with, and how to optimise those relationships.
- Providing Greater Visibility: AI provides greater visibility into the procurement process, making it easier to track spending and ensure compliance with regulatory requirements. AI further assists organisations in identifying areas where they can reduce costs by analysing spending patterns and identifying potential cost-saving opportunities.
- Increasing Productivity Levels: With the automation of tasks and enhanced supplier management, procurement teams can focus on strategic tasks which leads to better business outcomes.
- Aiding in Increasing Cybersecurity in Procurement: By analysing risks related to sourcing and email phishing, AI can assist in identifying potential vulnerabilities and take steps to mitigate them. AI can also provide efficient analysis of files and documents received, increasing data protection, and reducing the risk of cyberattacks.
In conclusion, AI is an exciting development for procurement that promises to transform the way procurement is done. The impact of AI on productivity and cybersecurity are significant, making AI a critical component of procurement in the years to come and will undoubtedly play a key role in shaping the future of procurement. We must also be mindful of data protection and privacy concerns, ensuring that our use of AI is compliant with all relevant regulations and guidelines”
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