A reader sent me the following article asking me for my thoughts on what it means. Here is my response.
What does this August 12, 2024 headline mean to you? What does it tell you?
For example, the tagline that over the next four years, “the procurement software market is expected to grow by $5.72 billion.”
Gartner, McKinsey, and even the Harvard Business Review recently reported that 80% of all AI initiatives are failing. There are some reports that between 30% and 50% of these initiatives are being abandoned outright. Industry pundits are now even suggesting that there is limited use for GenAI in procurement.
Many solution providers are even stepping back from their GenAI strategies, quietly retreating to what they were doing previously.
“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…..”– Solution Provider – Senior Executive
How do you reconcile the above two statements?
Who is expected to fuel the growth of the $5.72 billion? Are executives going to continue to throw good money after bad, ignoring the rate of initiative failures? Even Mark Zuckerberg had enough sense – or enough external pressure to walk away from his failed metaverse.
“Now it seems the passion project of the Meta CEO is being asked to reign in its spending.” – Meta’s Reality Labs asked to axe spending, Fortune Magazine (July 19, 2024)
The headline and subsequent article are like management’s vote of confidence for a coach just before they fire them. What is the above headline’s value beyond pumping up an industry with unrealistic expectations and false hopes in which 75% of current solution providers will be swept away in the 2025 AI Bubble Burst?
Did we learn nothing from the dot.com boom and bust in 2000?
Procurement Insights
Say What?!?
Posted on August 17, 2024
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A reader sent me the following article asking me for my thoughts on what it means. Here is my response.
What does this August 12, 2024 headline mean to you? What does it tell you?
For example, the tagline that over the next four years, “the procurement software market is expected to grow by $5.72 billion.”
Gartner, McKinsey, and even the Harvard Business Review recently reported that 80% of all AI initiatives are failing. There are some reports that between 30% and 50% of these initiatives are being abandoned outright. Industry pundits are now even suggesting that there is limited use for GenAI in procurement.
Many solution providers are even stepping back from their GenAI strategies, quietly retreating to what they were doing previously.
“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…..” – Solution Provider – Senior Executive
How do you reconcile the above two statements?
Who is expected to fuel the growth of the $5.72 billion? Are executives going to continue to throw good money after bad, ignoring the rate of initiative failures? Even Mark Zuckerberg had enough sense – or enough external pressure to walk away from his failed metaverse.
“Now it seems the passion project of the Meta CEO is being asked to reign in its spending.” – Meta’s Reality Labs asked to axe spending, Fortune Magazine (July 19, 2024)
The headline and subsequent article are like management’s vote of confidence for a coach just before they fire them. What is the above headline’s value beyond pumping up an industry with unrealistic expectations and false hopes in which 75% of current solution providers will be swept away in the 2025 AI Bubble Burst?
Did we learn nothing from the dot.com boom and bust in 2000?
So, someone, please tell me what is the purpose of the above headline and the corresponding article. I really want to know if I am missing something!
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