The real power of AI for Procurement will come as it combines with VR technology in immersive, interactive experiences.
VR technology is accelerating rapidly. The Apple Vision Pro is already capable of accessing all the data and applications you now have on your laptop. Eventually, your laptop will seem redundant. When 6G cellphone technology comes in the next five or six years, then you’ll start to see glasses replacing VR headsets. And as that happens, you won’t need a cell phone because you will see and talk to somebody through your glasses. So by 2030 expect the decline and disappearance of cell phones as well as laptops.
AI + VR = Powerful Experiential Learning
We may not yet be at the flexion point, but the VR metaverse is coming globally for both consumers and enterprises. Consumers might consider how often they search YouTube videos for a demonstration of a recipe, a fix for a smartphone app or how to repair their bicycle. Then imagine how much more effective those demonstrations will be when you can interact with the presenter in a 3-D, AI-empowered immersion.
Enterprise adoption of AI+VR is likely to follow a parallel path. Even if we are not at that stage yet, it is very clear that professional training is a ripe area for rapid development of AI-metaverse integrations. We can see that future at our company, LavenirAI, as we create learning modules for negotiation training using AI to manage user interactions with 2D avatars on a laptop screen. In our case studies, trainees negotiate with a sales avatar that reacts to the trainee’s statements until the conversation plays out and potentially an agreement is reached.
What we are using right now to teach negotiation can be easily adapted to other Procurement and Supply Management areas such as category management, supplier relationship management or risk management. One of the compelling reasons for what’s to come is that the training is customized to each individual. They can move at their own pace on their own time. They won’t have to go to a classroom at certain times. It will be available anytime, anywhere.
Another benefit is the gamification of the learning, which makes it more exciting for people. Learners benefit from the instant feedback, and at least in our example of negotiating against an AI avatar, they can go back and try again, knowing that each session will be unique, based on the learner’s new responses and the avatar’s new reactions. From the organization’s perspective the automatic, unbiased, detailed assessments of each interactive session provide valuable insights. The Head of Procurement or the Head of Development can see the collated quantitative results of how their team members are developing. In short, the future of learning is headed for more experiences with VR headsets, delivered on demand by AI applications. The result will be better experiential practice and therefore better retention.
AI + Avatar = Productivity
Human beings typically work 40 hours a week, but an AI-driven avatar works 24-7. The potential productivity gains are enormous. But one of the mixed blessings of AI applications is that they have the ability to bring the poor performers very quickly in an organization up to par with the high performers. That’s good from an organization’s internal standpoint because it raises the overall performance of a group, but it also gives lagging performers a chance to catch up, without understanding how something is done.
The same holds true at an organizational level as AI tools deliver analyses and insights of publicly available data to organizations of every size and experience. The challenge for high-performing individuals and companies will be to use AI in appropriate ways with the right skills and creativity to stay ahead of the pack.
For the near future it will be all about getting first to sights, ie. seeing what the opportunities are first, creating strategies to get that value before the competitors spot it as well. So that’s part of the changing dynamics of Procurement. One area where people will still be able to make a difference is in their ability to make connections and build relationships with suppliers for their most important categories. Human empathy still counts for something and is likely to continue to have value.
Another competency that will become important is unpredictability — a form of creativity. AI applications can quickly generate options from what’s been done in the past, so there will be a premium to find people who can generate truly new and unique ideas — including new ways to use AI.
In short, the future is racing at us, and you can see it coming in a VR headset.