While automation is a necessity for procurement organizations, it doesn’t necessarily mean they need Artificial Intelligence (AI). There are other proven technologies that can deliver excellent results without the risks and costs associated with unproven AI tech.
Automation Resonates with Smaller Companies
Smaller companies are in dire need of automation. However, it’s crucial to educate these companies that automation doesn’t always equate to AI. For nearly two decades, adaptive rules-based automation and tailored machine learning have been delivering impressive results in this space. These technologies can provide the solutions smaller companies need without the risks and costs associated with unproven AI tech.
Big Companies Favor Co-pilot Intelligence
Larger companies, particularly those that understand risk, are finding co-pilot intelligence appealing. Augmented intelligence and automated suggestions with yes/no approvals work well for organizations that understand risk and the categories/markets/domains they are applying the technology in. However, this only applies to a small segment of the market. Most companies still need better analytics, category intelligence, and expert guidance on how to use it and where and when to integrate automation and co-pilot capabilities.
Mid-Markets Seek Wide-Scale Tech Solutions
Mid-market companies are seeking technology that can be rolled out across the organization to manage tail-spend, manage intake, and relieve pressure on Procurement to focus on more strategic efforts. However, AI is typically not needed in this area. Catalogs, easy search, and easy RFQ are often enough.
In conclusion, while organizations of all sizes need help to manage their excessive workload and limited market insight, this doesn’t mean they need AI. Automation and advanced technology are definite yeses, but AI is rarely necessary. It’s important to remember this when building and recommending actual solutions, not just buzzwords.
