AI reshaping procurement & security: experts weigh in

The transformative capabilities of artificial intelligence (AI) are reshaping the world of business, particularly in the realm of procurement and cybersecurity.

Globality's Chief Revenue Officer, Seth Catalli, highlights AI's burgeoning influence in procurement processes, while Simon Pamplin, Chief Technology Officer at Certes, underscores the critical need for robust data security measures to ensure AI reliability.

As the global economy grapples with the aftermath of recent geopolitical shifts and a new U.S. President heralds potential economic changes, organisations are increasingly turning to AI to navigate these uncertain waters. Seth Catalli notes that 2025 could mark the tipping point where AI shifts from speculative hype to a fundamental business tool, particularly in strategic procurement. AI-enhanced procurement systems are allowing companies to synthesise data from various sources, enabling more informed and strategic decision-making.

AI-driven procurement technology empowers businesses to challenge the status quo in vendor relationships and optimise contract terms, sometimes revealing insights that prompt renegotiations or highlight opportunities for more effective spending. This can lead to cost savings, increased return on investment (ROI), and fostering more fruitful relationships with suppliers. Such systems can also continuously monitor supplier performance, making procurement more efficient and risk-aware.

Simultaneously, AI's increasing integration poses new challenges for data security. Simon Pamplin stresses that traditional security measures, which primarily protect infrastructures, often overlook the importance of securing data itself. He argues that securing the integrity and sovereignty of the data is crucial, as manipulated data can compromise the reliability of AI systems.

The evolution of cyber threats, now more sophisticated with the aid of AI, calls for a paradigm shift towards data-centric security approaches. Pamplin advocates for measures that place data protection at the forefront, such as ensuring data integrity and preventing manipulation. This requires a proactive approach to protecting the data that AI relies on, thereby safeguarding decision-making processes and maintaining trust in AI technologies.

Gamification is another avenue where AI is expected to drive change in the coming year. Catalli predicts that technology will tap into human psychology to encourage employees to identify and capture savings, aligning their interests with company goals. This may involve employees using AI systems to optimise costs, with incentives such as budgetary benefits driving motivation and enhancing efficiency.

The role of traditional tools like spreadsheets will not diminish entirely, according to Catalli. However, as business complexities grow, AI-powered systems will surpass the capabilities of simple spreadsheets, providing the advanced analytical firepower needed to tackle intricate challenges in procurement and decision-making.

The "interesting" times of 2025, marked by economic unpredictability and technological evolution, present both challenges and opportunities. AI stands as a potential catalyst for significant business transformations, provided organisations also bolster their security frameworks to protect the underlying data. The interplay of AI's benefits and the imperative of robust data security will define the strategic landscape for businesses as they navigate this dynamic era.