Artificial Intelligence and Procurement
Can AI improve Procurement?
The biggest trend in technology right now is the race to make machine learning more sophisticated and as the experts say, “less stupid.” Machine learning is the ability of computers to learn something without being explicitly programmed. Based on human neural learning, machine learning takes millions of examples and uses layers to build on itself to eventually interpret something without a human first identifying it.
Machine Learning & Procurement
Where does Procurement stand with this AI?
Machine learning is infiltrating every aspect of life. From machine translation, email spam filters, ATM check depositing, category filters for photos, emails and apps to facial recognition, machine learning is everywhere taking our basic human actions and instantly making sense of them through technology. But where does procurement fall within this new technology?
With a mobile-centric and technology-driven trend in procurement, it would seem as though artificial intelligence is the next logical step in how procurement specialists browse, select, order and process products and services. Hypothetically, machine learning would be able to predict and understand procurement’s needs even before the specialists do. Acting as a purchasing partner, the machine would complete the tasks like contract negotiation and invoicing all without the assistance of a manager.
Procurement: Broad Business!
Complet and Incredible…
Procurement is a complex and incredibly broad industry, but because it is mostly based on images and repetitive contractual text, machine learning applies nicely. If procurement becomes an industry based on unstructured data, machine learning wouldn’t yet be able to keep up. Machines would have to expand their neural networks to fully comprehend the vast amount of unregulated information coming into a procurement database.
But we are far from that reality, both in terms of the machine’s ability to learn abstract concepts at high speeds and procurement’s deviation into a bigger data environment. The next likely step in procurement technology is the integration of machine learning into even the most basic procurement activities. Innovation is always just around the corner.
Dont forget that Artificial Intelligence can outsmart cancer…
More News To Discover Below