Lessons for the New Zealand procurement sector on AI
NZGP was lucky to host Hiba Tahboub, Director and Chief Procurement Officer, and Khalid Bin Anjum, Senior Procurement Officer, from the World Bank in a recent Knowledge Hour.
In this hour-long interactive Hiba, Khalid and Michael Alp, General Manager, NZGP discussed lessons for the New Zealand procurement sector on AI.
Hiba Tahboub, Director and Chief Procurement Officer, World Bank.
Hiba Tahboub shared her vision for procurement and using AI for moving from process to purpose, including the efficiency and strategic gains that are possible while balancing the environmental trade-offs against the benefits of AI.
She said, “Procurement had originally been designed in a slower, more predictable world. It was process-driven with a compliance function. We now have expectations around speed, transparency, and delivery. AI, data, and transparency are no longer optional enhancements or innovations. We expect them to be part of an operating model that supports evidence-based decision making.”
Khalid Bin Anjum, Senior Procurement Officer, World Bank.
Khalid Bin Anjum expanded on Habi’s introduction with early examples of how machine learning could assist with a post-procurement review, through to more recent, rapidly changing examples.
He finished by saying AI and disruptive technologies undeniably offer transformative gains in productivity and efficiency, but this comes with the need to acknowledge risks and limitations.
“On the positive side, procurement is essentially about information, and this creates opportunities - more so than in many other functions. But only if organisations are willing to recognise this. AI within procurement can assist us to better manage delays, quality issues, and cost increases. It streamlines operations by automating tasks like spend analysis, invoice processing, and contract management, offering significant efficiency gains and cost reductions.”
“We can evolve into a new kind of procurement, one embedded in creating value to organisations and using procurement’s cross-function and long-term view. Procurement is extremely valuable to organisations and central to business resilience. Powered by data and AI, and with good governance, and humans in the loop, it really is transformational.” Said Khalid.
Adoption of AI means good AI Governance
You need to consider - transparency of prompts you are using, bias, data privacy, security, and fairness, Ethical use of AI, Accountability and Liability. Good governance is essential. Organisations are advised to follow responsible AI guidelines.
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