As the latest advances in AI-generated video demonstrate, the technology’s capabilities continue to improve at a dizzying pace.
For procurement organisations, however, developing a mind-blowing proof of concept shouldn’t be the main aim when it comes to technology. As the window for AI experimentation closes rapidly, the benchmark for taking use cases forward will be their ability to impact the P&L – not the number of jaws that hit the floor as they’re being demonstrated.
Last week, members of Procurement Leaders’ Tech Visionary Collective – an invite-only community of digital transformation thought leaders – gathered to preview some preliminary findings from our upcoming Digitalisation glide path report and explore the issue of which AI use cases organisations should prioritise.
One member shared a story that summed up their difficulties in demonstrating the ROI of AI. Their team had deployed a contract management tool capable of screening thousands of contracts at a rate of 98% accuracy, all in a matter of minutes. A task that once would have taken an entire team days, or even weeks, to complete could now be wrapped up in a fraction of the time. But while the results are staggering, they said making the business case remains a struggle.
It’s a useful reminder that speed is not a synonym for value. Identifying a contractual commitment in seconds is a technical feat; but acting on that insight to deliver tangible value – and communicate that across the organisation – is what matters most.
Another member noted they’ve struggled to find companies that have unlocked – and scaled – the benefits of deploying AI. The challenge, the group agreed, is accelerating the time-to-value and ensuring procurement delivers quick results while maximising adoption.
To borrow an analogy from one TVC member, acquiring an AI tool is like buying a “toolbox and a set of bricks”, but it’s on procurement to build something useful. This requires strong governance, a clear change management process and a laser focus on transforming an exciting concept into bottom-line impact.
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