P&SC LIVE New York: Innovating Procurement With AI

The final session at Procurement & Supply Chain LIVE New York featured Vitold Horodecki, Chief Procurement Officer for the Americas at Capgemini. As the event wrapped up, Vitold shared his insights on how AI is driving innovation in procurement, highlighting key transformations and practical implementations. Hosted by Neil Perry, the session covered AI’s far-reaching implications and offered a glimpse into the future of procurement.

The rise of AI in procurement

AI has been a recurring theme throughout Procurement & Supply Chain LIVE New York, and Vitold opens by addressing how Capgemini is embracing it to revolutionise traditional procurement practices. He first offers an overview of Capgemini’s journey, positioning the company as a technology and business transformation partner. “AI is something we’ve been following for a while now,” he says, adding that Capgemini’s experience with AI has recently earned recognition from Forrester.

Vitold stresses that AI’s impact isn’t limited to procurement. “It will impact everyone,” he states, before shifting focus to procurement’s evolving role. The primary objective at Capgemini has been to automate routine tasks, such as compliance and contract analysis, allowing buyers to spend less time on manual work and more on stakeholder engagement and value creation.

For example, Capgemini uses an AI tool to automatically summarise lengthy contracts, identifying key details such as renewal dates and deviations. “Before, we had to read the entire contract,” Vitold explains. “Now, it’s done in a fraction of the time.”

Addressing privacy and security concerns

One of the most pressing issues in AI implementation is privacy and security. Vitold acknowledged these challenges, mentioning well-known instances like the infamous Microsoft chatbot controversy. Capgemini’s approach, he explains, is rooted in establishing robust AI ethics guidelines and maintaining a rigorous security framework. “We ensure that data is fully protected and encrypted,” he says, adding that regular security audits are an essential part of the process.

Vitold points out that before rolling out any AI tool, it must pass stringent testing phases to ensure it fits within Capgemini’s secure environment. “It’s easy to start in the sandbox,” he remarks, “but it’s more challenging to structure it for full-scale deployment.”

Overcoming challenges and embracing change

When discussing the hurdles to AI adoption, Vitold identified employee resistance as a key challenge. “People are afraid we will replace them with robots,” he observes. At Capgemini, however, the goal is not to cut costs through AI but to enhance employees’ roles by upskilling them and reducing mundane tasks. “We want to make AI accessible and fun,” he adds, sharing details of Capgemini’s internal AI competitions, where employees are encouraged to come up with innovative AI solutions.

To make AI adoption a cultural shift, Vitold emphasises the importance of transparency and training. He advises organisations to provide teams with the necessary tools and training to explore AI’s potential. “We’ve even given everyone access to Microsoft CoPilot,” he notes, underscoring the company’s commitment to democratising AI.

Looking ahead: Future trends in AI

Wrapping up the conversation, Neil asked Vitold to predict the upcoming trends in AI within procurement. While acknowledging that AI is a “tsunami” that will continue to grow, Vitold offers a nuanced take on its integration. He predicted that AI will become increasingly embedded in everyday processes, with third-party providers incorporating AI into their solutions more seamlessly. “It will blend into the normal ecosystem,” he says, citing examples such as Microsoft CoPilot, which integrates OpenAI’s models.

Vitold also emphasises the importance of data management in AI implementation. His advice for procurement professionals looking to expand their AI capabilities was straightforward: “Don’t expect AI to fix everything fundamentally,” he cautions. Instead, he urges companies to focus on process simplification first and to approach AI with a well-thought-out data strategy.

The session concludes with a forward-looking perspective on how AI will shape the future of procurement. Vitold’s insights reflect Capgemini’s commitment to using AI not just as a technological tool but as a strategic enabler of operational efficiency and value creation. With AI rapidly becoming the new normal, the takeaway for procurement professionals is clear: embrace AI thoughtfully, and prepare for a future where it seamlessly integrates into every aspect of business.

Essential diary dates for 2024 and 2025…

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2024 diary dates:

• Manufacturing & Mobility LIVE | 6 November 

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• Procurement & Supply Chain LIVE Singapore | 11 February 
• Procurement & Supply Chain LIVE: Scope 3 | 5-6 March
• Sustainability LIVE: Net Zero | 5-6 March  
• Procurement & Supply Chain LIVE Dubai | 29 April 
• Procurement & Supply Chain LIVE Chicago | 4-5 June 
• Manufacturing & Mobility LIVE Chicago | 4-5 June 
• Procurement & Supply Chain LIVE London | 23-24 September 
• Procurement & Supply Chain Awards | 24 September 

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