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The Role of Gen AI in Procurement: A Breakthrough or a Challenge?

Gen AI in Procurement Breakthrough or Challenge

Artificial intelligence (AI) has been making significant waves across industries, and procurement is no exception. The emergence of Generative AI, often referred to as Gen AI, has sparked debates within the procurement community. Some see it as a groundbreaking innovation, while others remain skeptical, questioning its readiness and practicality.

Gen AI Enthusiasts vs. The Skeptic's Perspective

Gen AI represents the next evolution in AI technologies, promising advanced capabilities like creative problem-solving and decision-making. Proponents of Gen AI in procurement envision a future where AI systems can generate solutions to complex problems and assist in decision-making. Dr. Elouise Epstein, a prominent voice in the field, acknowledges the hype surrounding Gen AI's potential impact. Many organizations express a strong desire to become "Gen AI procurement organizations," believing that this technology can significantly improve efficiency and decision quality.

Despite the enthusiasm, skeptics raise valid concerns. This skepticism is rooted in the understanding that the development of the technology is an ongoing and complex process, and applying it to procurement involves inherent complexities. Additionally, concerns related to data quality and biases in AI algorithms cast doubt on its ability to deliver unbiased and reliable results.

The Realistic Outlook

In this dynamic debate, a more realistic perspective suggests that Gen AI is an important waypoint in AI's evolution, as described by Opstream’s Co-Founder and CTO Mor Cohen-Tal. “Gen AI may not be the final destination but rather a step towards what comes next in AI technology.”

So, what can we conclude? Gen AI is undoubtedly a powerful innovation, and its applications in procurement have the potential to be transformative. However, organizations must proceed with caution, acknowledging the challenges and limitations that come with it. To fully leverage Gen AI, a deeper understanding of data quality, algorithm biases, and the need for ethical considerations is essential.

The Future of Gen AI in Procurement

As Gen AI continues to evolve, it is expected to play a pivotal role in two key areas of procurement: process orchestration and intelligence creation. Process orchestration, which involves streamlining and automating procurement workflows, is seen as a significant application. The ultimate goal is to enable AI to take on the task of designing workflows and optimizing them based on predefined objectives, allowing procurement professionals to focus on higher-value activities.

In Conclusion

In the ongoing debate surrounding Gen AI's role in procurement, it's essential to find a balance between enthusiasm and skepticism. Gen AI is a promising technology that can enhance efficiency and effectiveness, but it is not without its challenges. Organizations should carefully consider data quality, biases, and ethical concerns when adopting Gen AI in their procurement processes.

The future of procurement is undoubtedly digital, and Gen AI is poised to be a valuable part of that transformation. While we may not have all the answers yet, it's clear that Gen AI is a significant milestone on the journey to a more efficient and effective procurement landscape.


Ready to break through your procurement processes with AI? Opstream is the self-service, AI-Driven, procurement platform that is built for cross-functional teams, with the ability to launch within days not months, unlocking full visibility and control over your spend, BEFORE it happens. Book a demo today.


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