AI In Procurement Today (Part 1): Definitions and 6 Applications in P2P [PRO]

AI is the buzzword — or, more precisely, the buzz acronym — du jour in procurement software. Just about every vendor claims its applications have artificial intelligence, even though many have only basic forms of robotic process automation (RPA) or, at best, automated reasoning systems enhanced by machine learning.

But whether or not a vendor has capabilities that constitute true AI is not the ultimate question procurement needs to answer. Rather, procurement must ask what currently available systems can do today, how those systems can be used to automate and improve standard processes, and how today’s technology can prepare organizations to adopt true “cognitive” systems when they become available. Because real AI is coming. And if procurement fails to adopt the precursor technologies available today, laggard organizations risk being left in the dust by those that do.

This Spend Matters PRO series explores use cases for artificial intelligence in procurement, today and in the near future. It begins by defining, in plain terms, what AI is, which technologies fall under its umbrella and how they relate to procurement. We then identify six of the best mainstream applications of AI in procurement and explain how each can be applied to the procure-to-pay cycle. Future installments will examine applications of AI beyond P2P, including sourcing, spend analytics and supplier management.

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