“It’s less about a single tool and more about a mindset: strip out waste, accelerate cycles, and prioritize outcomes over process. How does it work in practice? Hansen hints at a lean, adaptive framework. Imagine a manufacturer needing parts after a sudden demand spike. A traditional system might take days—requisition forms, ERP updates, supplier bids. Velocity Procurement might use pre-vetted supplier pools, real-time data feeds (e.g., stock levels, shipping ETAs), and empowered buyers to lock in an order within hours. It’s not anti-tech—Hansen’s roots show he loves smart algorithms—but it’s anti-bloat. He’d likely pair lightweight AI (say, demand prediction) with human overrides, avoiding the “black box” trap of fully automated systems.” – A Case Study: How does Hansen’s Velocity Procurement stack up to SAP IBP or a specific case?
Concerns about the “black box” nature of Artificial Intelligence (AI) systems are prevalent among C-suite executives, though specific percentages vary across roles. The “black box” issue refers to the opacity in AI decision-making processes, making it challenging for leaders to understand and trust AI outputs.
General C-Suite Concerns:
- Trust and Transparency: A survey revealed that 43% of CEOs express concerns about the trustworthiness of AI and machine learning (ML) systems. Additionally, 67% of CEOs cite potential errors as a top risk associated with AI and ML integration. futurecfo.net
- Engagement in AI Governance: Findings indicate that only 33% of C-suite executives are involved in developing or implementing governance frameworks to mitigate AI risks, and a mere 23% actively review AI-related risks. kpmg.com
Role-Specific Insights:
- Chief Financial Officers (CFOs): CFOs often grapple with challenges in measuring the return on investment (ROI) for AI initiatives. This difficulty in quantifying AI’s financial benefits contributes to hesitancy in fully embracing AI technologies. itpro.com
- Chief Information Officers (CIOs): CIOs face obstacles in aligning AI projects with clear business outcomes, partly due to the opaque nature of AI systems. This misalignment can lead to difficulties in justifying AI investments and integrating them seamlessly into existing IT infrastructures. itpro.com
- Chief Executive Officers (CEOs): Beyond trust and error concerns, CEOs are also mindful of the ethical and reputational implications of deploying AI systems that lack transparency, which can impact stakeholder trust and company image. futurecfo.net
- Chief Operating Officers (COOs): While specific statistics are limited, COOs are likely concerned with how AI’s “black box” nature affects operational efficiency and risk management, especially when AI-driven decisions impact critical business processes.
- Chief Procurement Officers (CPOs): Detailed data on CPOs’ specific concerns regarding AI transparency is scarce. However, it’s reasonable to infer that CPOs would be cautious about integrating AI into procurement processes without clear insights into AI decision-making, as this could affect supplier relationships and compliance.
In summary, while precise percentages for each role are not always available, it’s evident that the “black box” nature of AI systems raises significant concerns across the C-suite. These concerns primarily revolve around trust, transparency, accountability, and the ability to effectively govern AI implementations within their respective domains.
TODAY’S TAKEAWAY: Priority One – Getting The Job Done
Here is an excerpt from the post: What Are The Origins Of ProcureTech Implementation Success?
“Compared to modern tools like Blue Yonder or Flexport, velocity procurement isn’t a branded software but a strategic lens. Those platforms offer velocity through AI and IoT; Hansen’s version might use them selectively, but he’d ditch their complexity if it slowed things down. His critique of “technology-led” procurement suggests he’d favor a stripped-down dashboard over a $100,000/year suite if it got the job done.
The term velocity procurement’s newness means it’s not fully codified—Hansen’s still shaping it in public forums. But it’s rooted in his legacy: data-driven, people-centric, and obsessed with efficiency.”
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Procurement Insights
C-Suite executives are concerned about the AI Black Box issue – Why not eliminate the Black Box and keep the AI?
Posted on February 26, 2025
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“It’s less about a single tool and more about a mindset: strip out waste, accelerate cycles, and prioritize outcomes over process. How does it work in practice? Hansen hints at a lean, adaptive framework. Imagine a manufacturer needing parts after a sudden demand spike. A traditional system might take days—requisition forms, ERP updates, supplier bids. Velocity Procurement might use pre-vetted supplier pools, real-time data feeds (e.g., stock levels, shipping ETAs), and empowered buyers to lock in an order within hours. It’s not anti-tech—Hansen’s roots show he loves smart algorithms—but it’s anti-bloat. He’d likely pair lightweight AI (say, demand prediction) with human overrides, avoiding the “black box” trap of fully automated systems.” – A Case Study: How does Hansen’s Velocity Procurement stack up to SAP IBP or a specific case?
Concerns about the “black box” nature of Artificial Intelligence (AI) systems are prevalent among C-suite executives, though specific percentages vary across roles. The “black box” issue refers to the opacity in AI decision-making processes, making it challenging for leaders to understand and trust AI outputs.
General C-Suite Concerns:
Role-Specific Insights:
In summary, while precise percentages for each role are not always available, it’s evident that the “black box” nature of AI systems raises significant concerns across the C-suite. These concerns primarily revolve around trust, transparency, accountability, and the ability to effectively govern AI implementations within their respective domains.
TODAY’S TAKEAWAY: Priority One – Getting The Job Done
Here is an excerpt from the post: What Are The Origins Of ProcureTech Implementation Success?
“Compared to modern tools like Blue Yonder or Flexport, velocity procurement isn’t a branded software but a strategic lens. Those platforms offer velocity through AI and IoT; Hansen’s version might use them selectively, but he’d ditch their complexity if it slowed things down. His critique of “technology-led” procurement suggests he’d favor a stripped-down dashboard over a $100,000/year suite if it got the job done.
The term velocity procurement’s newness means it’s not fully codified—Hansen’s still shaping it in public forums. But it’s rooted in his legacy: data-driven, people-centric, and obsessed with efficiency.”
30
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