Artificial Intelligence in Sourcing: The Day After Tomorrow [PRO]

In Spend Matters’ last PRO article about AI in Sourcing, we reviewed some of the exciting capabilities that you will be able to expect in tomorrow’s e-sourcing systems, where we define AI as “augmented intelligence” because, as we’ve repeatedly stated in our articles in this ongoing AI series, there is no true artificial intelligence in any enterprise technology today. In fact, there won’t be anything close, at least on the open market, even tomorrow. But it will be closer tomorrow, and it will approach the point where it can be labeled augmented intelligence as it will allow you to make better, smarter, decisions — no matter how good and smart the decisions were that you made in the past.

In the last article, we discussed the following augmented intelligence capabilities in particular that will be part of tomorrow’s e-sourcing platforms:

  • Event-based category alignment
  • Market-based sourcing strategy identification
  • Automatic strategic sourcing events
  • Suggested award scenarios

However, as great as event-based category alignment and market-based sourcing strategy identification will be, and as fantastic as automatic strategic sourcing events with suggested awards will be, there will be even better augmented intelligence capabilities in the e-sourcing platforms of the future. Specifically, the day after tomorrow, you will be able to expect the following seemingly magical capabilities:

  • SKU replacement
  • End-of-life (EOL) recommendations for products
  • Real-time strategy alignment
  • Auto-pause/extend

And more. But anything beyond these could be quite a ways out, so we will stick to these for now.

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