Procurement Practitioner – Senior Executive
“On the AI topic, I have been highly skeptical of how much is really being delivered vs. the promises across all the places we have been seeing AI advertised/promoted.
In the eProcurement industry, it seems that many providers have just slapped the “AI” brand on functionality that they already had in place, though there are a couple that say they are working on ‘real’ AI functionalities to put into their system. I’m still skeptical about the potential value to groups like Procurement. The most common example I’m watching is using AI to write documents like specifications, scope of work, and RFPs. Of course, so much depends on the sources an AI would draw from and the risk/danger that end users might put too much trust in the AI author.”
Solution Provider – Senior Executive
“After making significant investments in our Supplier Intelligence offering, we realized that we could not sell it and had to withdraw from it and switch back to being just a supplier discovery company.
Being just a supplier discovery company is not going to pay the bills…..”
Industry Influencer
“I haven’t announced it publicly. I’m waiting for some updates to be finalized before doing so.
No more procurement for me.”
Industry Analyst
“I’m wondering if I have to leave the space because I’m struggling to find clients I can actually work with … since I refuse to work for, be, or manage (one or more) of them.”
What do the above comments tell you about the state of Generative AI in procurement? What lesson or lessons should you take away from these professionals’ words?
I had one more “expert” – this one the ultimate expert on AI and asked the following question: “What percentage of all AI initiatives fail?
“The percentage of AI initiatives that fail can vary depending on the source and criteria used to define “failure.” However, various studies and reports provide some insights:
- General Failure Rate: Some estimates suggest that up to 70-80% of AI initiatives fail to meet their objectives or deliver the expected value. This high rate of failure is often attributed to factors such as unclear objectives, lack of proper data, insufficient expertise, or unrealistic expectations.
- Gartner Research: According to Gartner, a well-known research and advisory company, about 85% of AI projects fail to deliver a significant business impact. This figure highlights the challenges organizations face in successfully implementing AI technologies.
- McKinsey Report: A report by McKinsey & Company notes that about 50% of AI projects fail to make it from pilot to full deployment, emphasizing difficulties in scaling successful pilot projects.
These figures underscore the importance of careful planning, clear goal-setting, and robust execution strategies in AI projects. Organizations that invest in thorough preparation, including data quality, talent acquisition, and alignment with business objectives, tend to have higher success rates with their AI initiatives.”
By the way, the expert from whom I sought the above feedback was AI itself—ChatGPT.
There is a solution:
- Start by using an agent-based model versus an equation-based model – https://bit.ly/3FBnFRr
- As a procurement practitioner, take full and unwavering ownership of your success. You, not the solution provider, must take the lead – https://bit.ly/3SMY0wd
- Instead of company names, we should know the names of the people behind each solution provider. Who are they, what is their experience and expertise, and do they have “the team” that can work with our team to make it happen? – https://bit.ly/3R2SdT9
AND Remember—By the end of 2025, most procurement solution providers will disappear from the map. Here is what you need to know as a practitioner.
30
Procurement Insights
In Search of Generative AI Truth
Posted on August 12, 2024
0
Procurement Practitioner – Senior Executive
“On the AI topic, I have been highly skeptical of how much is really being delivered vs. the promises across all the places we have been seeing AI advertised/promoted.
In the eProcurement industry, it seems that many providers have just slapped the “AI” brand on functionality that they already had in place, though there are a couple that say they are working on ‘real’ AI functionalities to put into their system. I’m still skeptical about the potential value to groups like Procurement. The most common example I’m watching is using AI to write documents like specifications, scope of work, and RFPs. Of course, so much depends on the sources an AI would draw from and the risk/danger that end users might put too much trust in the AI author.”
Solution Provider – Senior Executive
“After making significant investments in our Supplier Intelligence offering, we realized that we could not sell it and had to withdraw from it and switch back to being just a supplier discovery company.
Being just a supplier discovery company is not going to pay the bills…..”
Industry Influencer
“I haven’t announced it publicly. I’m waiting for some updates to be finalized before doing so.
No more procurement for me.”
Industry Analyst
“I’m wondering if I have to leave the space because I’m struggling to find clients I can actually work with … since I refuse to work for, be, or manage (one or more) of them.”
What do the above comments tell you about the state of Generative AI in procurement? What lesson or lessons should you take away from these professionals’ words?
I had one more “expert” – this one the ultimate expert on AI and asked the following question: “What percentage of all AI initiatives fail?
“The percentage of AI initiatives that fail can vary depending on the source and criteria used to define “failure.” However, various studies and reports provide some insights:
These figures underscore the importance of careful planning, clear goal-setting, and robust execution strategies in AI projects. Organizations that invest in thorough preparation, including data quality, talent acquisition, and alignment with business objectives, tend to have higher success rates with their AI initiatives.”
By the way, the expert from whom I sought the above feedback was AI itself—ChatGPT.
There is a solution:
AND Remember—By the end of 2025, most procurement solution providers will disappear from the map. Here is what you need to know as a practitioner.
30
Share this:
Related