Transforming Corporate Buying with Online Chatbots

One of the major digital impacts on businesses shortly will be from Artificial intelligence. Organizations must gear up to be AI-ready to capitalize on first-mover advantages.

How AI Chatbots Are Changing The Procurement Process Landscape And Assess

We take a focused look at?how AI Chatbots are changing the procurement process landscape?and assess how it has the potential to become a major business game-changer.?

Defined as “the capacity of a computer to perform operations analogous to learning and decision making in humans,” conversational AI has the potential to engage people more resourcefully.

Conversational Interface (CI), commonly referred to as Chatbots involves verbal and written communication akin to chatting with a human.? It is endowed with the feature of context-aware memory that allows it to remember previous conversations with the same person. Procurements are using chatbots to not only restructure the people-to-business linkage but also to turn it into a viable and effective customer service feature.?

• Conversational systems with Natural Language Processing (NLP) enhance the user experience by allowing buyers to interact in the language of their choice.
• It has the capability to perform and replace manual complicated tasks and can offer recommendations based on past transactions.
• Conversations boost usability, enhance comfort in use, and build a rapport with end users.

Traditional Procurement: Manpower-Intensive and Costly Paperwork Processes

Procurement functions have traditionally been saddled with heavy manpower resources, cumbersome paperwork processes, and burdened with substantial administrative costs.??

This is one of the major reasons that AI is increasingly being incorporated into the procurement process. Procurement departments are open to testing and implementing a multitude of technological solutions, be it the?Internet of Things using AI?or testing with?blockchain, they sure are seeking viable solutions to enable better and faster work optimization.

COVID-19 has in its wake opened up newer avenues of incorporating the latest technologies rapidly and making systems and processes more automated, resource-optimized, and result-oriented.

However, there is a transition phase that needs to be considered. Procurement departments must align to reduce their dependence on labor-intensive processes and match consistent data to fit in with intelligent automation. Many emerging technologies are helping to bridge the gap and enable a seamless transition model.

Listed here are some ways that AI could impact procurement models making them more resourceful and effective.?

Automating Invoice Processing and Approval of Proposed Purchases?

A survey conducted by Ivalua showed that two of the biggest areas having the greatest potential for automation are Invoice Processing (51%) and approval of proposed purchases (35%).

Procurement software will lean towards AI-based invoice automation. This will allow the transfer of mundane, daily tasks like invoices contracts checks, purchase orders, recordkeeping, etc to a digital assistant. This will free up the time and resources spent by the employee and allow him to focus on high-value work.

Chatbots will play a larger role in influencing buyers on what and when to buy based on consumption patterns. In the foreseeable future AI in combination with predictive analysis may just implement purchases autonomously and may also consider external factors like seasonal changes which can help control damage from unused inventory.

Minimize Supply Chain Risks?

Supply chain risk is a bottleneck point for buyers. Incorporating technology will go a long way in easing the pressure.? It will enable companies to have control of suppliers via verified data and in association with predictive analysis they can create supplier risk profiles and risk events.

As supply chains update their software to automate POs it will allow seamless collaboration between procurement and vendors, reduce order times, and execute supply chain operations more effectively and on a real-time basis.

Propel the procurement department as a Bottom Line Influencer?

As procurement departments incorporate a data-focused approach, and add more value to the organization, it will move swiftly from being seen as only a support department to having a strategic impact on the bottom lines.? It is estimated that AI may help procurement attain 15-25% savings on addressable spending.

Technology is changing the business landscape at an exponential rate. Enterprises are in a complex race to incorporate the latest trends and technologies to stay at the top of their game.

As AI progresses, it will create path-breaking collaborations and will take the experience levels to a new high. Co-botics will be the scene of the near future where the coupling of humans and robots will deliver tremendous results.?So as purchase departments commence the journey towards becoming AI-empowered, many opportunities will surface to catapult the procurement into a more strategic role that can deliver reliably higher value.

Let’s Discuss Your Idea