In the middle of a rapidly changing year, it’s crucial to explore the transformative potential of GenAI and its impact on the digital procurement industry.  

In this article, we’ll unpack key insights from a recent CB Insights report: 2024 Generative AI Predictions, and explore how GenAI advancements are set to revolutionise digital procurement. 

📈 Data Scarcity and Data Demands 

One of the most significant points highlighted in the report is the scarcity of high-quality data for training large language models (LLMs). This shortage is becoming increasingly evident, and is expected to worsen by 2026.  

As a result, organisations that possess unique data sets find themselves in a highly advantageous position. These companies are becoming prime targets for licensing deals and acquisitions, as their data sets are in high demand.  

With data scarcity on the horizon, the demand for synthetic datasets is surging. For procurement, which relies on data for everything from forecasting to supplier evaluation, embracing synthetic data generation can supplement existing datasets, ensuring continuous model training and improved decision-making capabilities without compromising data quality. 

🤖 Cybersecurity and Addressing Vulnerabilities  

GenAI is also significantly boosting productivity in white-collar jobs.  

GenAI applications, such as AI copilots, are already making a considerable impact by automating routine tasks such as order processing and invoice management. This automation not only saves time but also allows procurement teams to focus on more strategic activities.  

 However, the rise of GenAI also markedly increases cybersecurity threats. As procurement systems become more digitised, they are increasingly vulnerable to cyberattacks.  

This dual approach can help mitigate risks and protect sensitive procurement data from potential breaches, ensuring the integrity and security of procurement processes. 

 🚀 What does this mean for Procurement? 

For procurement, the implications of these GenAI trends are profound.  To remain competitive, procurement leaders must continuously seek out and adopt new technologies.  

As we shift towards AI-driven processes, it is essential to upskill procurement teams in AI and data analytics, equipping them with the knowledge and skills required to manage and operate these technologies.  

Forming strategic alliances with AI vendors and data providers can further enhance procurement capabilities and provide a competitive edge.  

At the same time, ethical considerations around data usage, privacy, and decision-making must be addressed to maintain trust and compliance in an increasingly AI-driven landscape. 

Looking ahead to the latter half of 2024 and beyond, procurement leaders should focus on: 

• Allocating budget and resources towards integrating GenAI into procurement processes: This investment will yield increased efficiency and effectiveness in the long run. 

• Ensuring procurement systems are robust enough to handle GenAI complexities: Adopting AI while fortifying the infrastructure to support it. 

• Encouraging continuous learning and experimentation with new GenAI tools and techniques: Fostering a culture of innovation will keep you ahead of the curve.  

It is an exciting time to be in procurement, and those who embrace these changes will undoubtedly pave the way forward.