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As a final contribution to our series of New Year wishes (rather than ‘predictions’) for the procurement, supply and services market for the year ahead (read more about it here) today we hear from cloud-based business spend management automation technology provider Jaggaer.
My 3 wishes 2022:
1. That ESG is driven in large part through intelligent solutions
Environmental, social and governance (ESG) initiatives are quickly rising to the top of procurement and supply chain agendas. Artificial intelligence and machine learning are foundational to helping organizations make decisions that drive ESG performance. These tools process data much faster than traditional methods, enabling teams to more effectively use valuable ESG intelligence in their decisions, such as which suppliers should be invited to a sourcing event based on their ESG scope. Predictive analytics can run ‘what if’ scenarios to show the product impact of choosing a sustainable supplier and the outcome of not working with such a partner.
My hope is that increased pressure from investors and the public on sustainability will lead to faster adoption of AI-led features including supply chain carbon footprints calculations, and more. Procurement technology can prove that a solid ESG strategy can translate into strong products and business performance. As more organizations take responsibility, we’ll start to see more practical use cases for intelligent procurement and supply chain solutions that drive sustainability and ESG efforts along with traditional business objectives.
Georg Rösch, VP Product Management, Jaggaer
2. That organizations carve out more time for supplier collaboration
Procurement tech is getting smarter and faster. We’re seeing AI-led solutions automate time-consuming and paper-based processes like contract lifecycle management and give procurement teams more time back in their day. Tech solutions also provide teams with deeper insights, which means buyers and suppliers can integrate more variables into their negotiations beyond price alone, such as sustainability and ESG factors.
My wish is that in 2022, the freed-up time will go toward high-value initiatives such as buyer-supplier collaboration. Carving out time to work with suppliers on strategy, rather than spending time on pure price negotiations, is essential for achieving long-term goals.
Alexandra Lafaurie, VP Product Management, Jaggaer
3. That organizations devote more time toward developing responsible AI
There is a real need for AI systems that we can trust. The business community is becoming more aware of the reality and risks associated with AI — issues with privacy, security and bias. My wish is that in 2022 teams in charge of these systems will devote around 70% of their time to ensuring AI is designed and operating in a responsible way. The remaining 30% can be spent building out the other details. This is how important ethical and responsible AI is becoming.
Regardless of the number of features an AI system has, if not properly managed and trusted, the risks of the system outweigh any potential benefit.
Amen Reghimi, VP Product Management, Jaggaer
That’s the last of the contributions to our 2022 series of wishes from our industry, for our industry. Many thanks to Jaggaer and to all the organizations that contributed. Find them here.
Look out for an overall take on the series and the key themes that emerge from our analyst Bertrand Maltaverne.
