Generative AI for Procurement?
A recap from the ProcureTech Founder Circle. London, October 5th, 2023.
About the "ProcureTech Founders Circle"
The "ProcureTech Founders Circle" is a regular event hosted by ProcureTech and Kearney. Leading corporates, investors and CEOs and founders of innovative digital companies regularly meet to align on trends, challenges and the future of digital procurement. On October 5th, the discussion centered around utilizing generative AI for procurement.
Several key takeaways emerged from the insightful conversations:
Reliability of Information
The first crucial point emphasized the importance of reliable data and information as the foundation for any successful implementation of generative AI in procurement. Without accurate and trustworthy data, the potential benefits of AI may be compromised.
Data Foundation and Trust
Building trust in the data generated by AI systems emerged as another critical consideration. Trust is essential not only in the technology itself but also in the processes and governance surrounding its use. Establishing transparency and accountability in AI-driven procurement is key to gaining stakeholder confidence.
Operational vs. Strategic Use
Participants also discussed the balance between using generative AI for operational tasks versus strategic decision-making and self execution. While AI can significantly enhance efficiency in day-to-day operations, it's essential to remember that it should complement human expertise, particularly in addressing complex strategic challenges.
Generative AI a powerful Tool
Summarizing, generative AI serves as a powerful tool for generating content and supporting daily work tasks. This automation can create more free time for professionals to concentrate on tackling larger, more strategic challenges within the procurement domain. In essence, generative AI serves as an enabler, allowing procurement professionals to redirect their focus towards solving the big-picture issues that drive innovation and growth in their organizations.
What is generative AI?
Generative AI, short for "Generative Artificial Intelligence," refers to a class of artificial intelligence systems that are designed to generate content or data that is similar to what a human might create. These AI models use various techniques, often based on deep learning and neural networks, to produce content such as text, images, audio, or even video.
The key characteristic of generative AI is its ability to create new and original data rather than simply making predictions or classifying existing data. Here are a few important points to understand about generative AI:
- Variety of Applications: Generative AI can be applied in a wide range of domains. For example, it can be used to generate natural language text for content creation, translate languages, create art and designs, generate realistic images, and even compose music.
- Training Data: These AI models are typically trained on large datasets that contain examples of the type of content they are meant to generate. For instance, a text generation model might be trained on a vast collection of text documents.
- Types of Models: There are various types of generative AI models, including recurrent neural networks (RNNs), convolutional neural networks (CNNs), and more recently, transformer-based models like GPT (Generative Pre-trained Transformer) and BERT.
- Conditional Generation: Generative AI can also generate content based on specific conditions or inputs. For example, you can provide a prompt to a text generation model to instruct it on what kind of text to produce.
- Ethical Considerations: The use of generative AI has raised ethical concerns, particularly in terms of generating fake content, misinformation, and deepfakes. It's essential to use such technology responsibly and consider the potential consequences.
Generative AI has shown remarkable progress in recent years and has the potential to revolutionize various industries by automating content creation and creative tasks. However, it also poses challenges related to quality control, ethics, and ensuring that generated content aligns with human values and expectations.
Generative AI at ivoflow
At ivoflow, we are committed to strengthening our AI and generative AI capabilities, while also offering our customers the flexibility to implement these technologies within their isolated environments. We understand that data security, privacy, and compliance are paramount concerns for many organizations, and we want to empower our customers to make informed decisions that align with their unique needs and requirements. By providing this choice, we aim to ensure that our AI solutions can seamlessly integrate into a wide range of sensitive operational settings, enhancing their value and applicability across various industries and use cases.