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Crucial Applications for Procurement Artificial Intelligence

Artificial Intelligence (AI) is one of the digital technologies progressing rapidly and is a current topic of broad interest. AI has contributed to a more efficient and intelligent way of streamlining business operations, which helps companies achieve cost reduction, improve efficiency and productivity and improve responsiveness to market demand.

This article aims to look into the crucial applications of AI in procurement, namely in the area of spend analytics, strategic sourcing and contract management, supplier risk management and robotic process automation (RPA) in procure-to-pay workflow. The chart below shows the applications of AI across Procurement Cycle.

AI in procurement
Image taken from https://sievo.com/resources/ai-in-procurement

Understanding Artificial Intelligence

Artificial intelligence (AI) is a technology capable of performing tasks that typically require human intelligence by learning, coming to its own conclusions, understanding complex data, engaging in natural dialogues with people, enhancing human cognitive or replacing people on execution of non-routine tasks. These machines are programmed to rationalise like a human being and imitate human behaviours. The ideal characteristic of AI is to solve complex tasks better or more efficiently than humans.

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Margaret Ng Ka Hung, ADPSM
Margaret Ng has extensive experience in procurement. She is passionate about exploring the potential applications of digital technologies to improve workplace efficiency and reduce cost for an organisation. She holds a Bachelor of Engineering degree from the National University of Singapore, and is a member of Singapore Institute of Purchasing and Materials Management (SIPMM). Margaret will complete the Advanced Diploma in Procurement and Supply Management (ADPSM) course on April 2020 at SIPMM Institute.

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