Zycus: Procurement Must Act to Uptake GenAI
Zycus, known as one of the world’s leaders in generative AI (GenAI) powered source-to-pay (S2P) solutions, pioneered the world's first GenAI-powered platform alongside Microsoft, that helps procurement achieve ten times the speed and efficiency.
It has become a trusted partner to some of the globe’s biggest enterprises – such as IBM, Accenture and EY – as well as being recognised for its efforts by leading analysts such as Gartner and Forrester for its organically built, composable and extensible source-to-pay suite.
Through the use of its Merlin GenAI Suite, it can empower procurement teams by automating tactical tasks, allowing people to focus on strategic initiatives. As well as offering a one-of-its-kind conversational AI, Merlin Assist, for business users, which through its integration with Microsoft Teams, can streamline intake management with a user-friendly experience.
What do procurement leaders think about AI?
Zycus, alongside Procurement Tactics, a renowned procurement strategy consultancy, have released the State of Generative AI in Procurement report aimed at helping Chief Procurement Officers (CPOs) differentiate the hype from the reality of GenAI.
The ‘State of Generative AI in Procurement’ report provides unprecedented insights into how GenAI is transforming procurement processes, based on extensive survey data from procurement leaders worldwide.
Aatish Dedhia, CEO of Zycus, says: “Generative AI is the new UI. At Zycus, we are committed to leading this revolution, ensuring that procurement professionals don’t miss out on this paradigm shift.”
Key findings reveal a critical crossroads in GenAI adoption
Adoption Gap: Nearly 70% of Chief Procurement Officers (CPOs) have yet to implement GenAI, despite its demonstrated benefits. This stark divide highlights a substantial untapped opportunity for competitive advantage.
Governance Challenge: More than 60% of companies lack specific policies on GenAI usage, highlighting an urgent need for strategic guidance as adoption accelerates.
Transformative Potential: The report details how GenAI is automating routine tasks and enhancing strategic decision-making across the entire procurement lifecycle.
Ethical Considerations: Data quality and security emerge as top concerns, emphasising the need for responsible AI implementation strategies.
This report serves as a wake-up call for the procurement industry. The potential of GenAI is immense, but the adoption gap is equally significant. Organisations that act now to integrate GenAI responsibly will gain a substantial competitive edge.
Marijn Overvest, Founder of Procurement Tactics, adds: “With GenAI, the procurement landscape is seeing unprecedented efficiency and strategic transformation.
"Our findings reveal a clear path towards a more automated and insightful procurement process, driving significant value for businesses.”
Bridging the gap
The report adds five steps for CPOs looking to bridge the gap in GenAI to make more effective procurement practices:
- Policy gap analysis Compare current policies with industry standards and best practices for GenAI governance. Identify specific areas lacking guidelines, such as data privacy, security, ethical considerations and GenAI deployment protocols.
- Cross-function governance committee This committee will be responsible for developing, implementing and overseeing GenAI governance policies. Regular meetings should be scheduled to discuss progress and address any emerging issues.
- Develop comprehensive policies Include guidelines on data management, ethical GenAI use, risk management, compliance and security. Specify the roles and responsibilities of team members in adhering to these policies.
- Implement training programmes Offer workshops, online courses and regular updates to ensure all team members understand and can effectively implement GenAI governance policies.
- Leverage best practices study Study case studies and frameworks from organisations recognised for their effective GenAI governance, such as the OECD GenAI Principles or the EU’s Ethical Guidelines for Trustworthy AI.
The full report can be found here.
******
Make sure you check out the latest edition of Procurement Magazine and also sign up to our global conference series - Procurement & Supply Chain LIVE 2024
******
Procurement Magazine is a BizClik brand.