Ai In Procurement Definition

In the business world, procurement is the process of acquiring goods or services from an outside supplier. In recent years, artificial intelligence (AI) has increasingly been used in procurement to help organizations save time and money.

When it comes to AI in procurement, there are a few different approaches that can be taken. One is using predictive analytics to identify potential areas for cost savings. Predictive analytics takes data from past procurements and looks for patterns that can be used to forecast future costs. This information can then be used to negotiate better prices with suppliers or choose different suppliers altogether.

Another approach is using AI-enabled chatbots to automate the request for quotation (RFQ) process. Chatbots can interact with suppliers on your behalf, asking questions and gathering information about pricing and availability. This can save a lot of time and effort on your part, and ensure that you get the best possible price for the goods or services you need.

Whatever approach you take, AI can be a valuable tool in streamlining your procurement process and saving your organization money.