Generative AI will continue to transform strategic sourcing and procurement decisions in promising ways, according to Lauren Elliott, Director and Global Head of DDIQ Implementation, in a recent interview with Procuretech. “It’s the ability to assess markets and suppliers in those markets without collecting data through time-consuming and manual means. Open-source data vendor assessment tools, exchanges, and certification marketplaces are becoming really valuable ways to have transparency into a market or supplier ecosystem without the traditional costly and often inaccurate market research process.”

One challenge to watch: AI can be a tool for cyber attacks. “Cyber criminals are going to continue to target supply chain entities to disrupt and damage organizations. And using generative AI is an efficient, creative means to that end,” said Munish Walther-Puri, Vice President of Cyber Risk at Exiger.

He noted that bad actors are already using generative AI (GenAI) to craft perfectly deceptive emails for phishing or masquerading as a company executive. Or they may target open-source components in AI models that are part of a supply chain’s operation.

“Criminals will use some of this powerful technology to spread disinformation or to poison internal data models so they get the attention of a board of directors or a Fortune 500 company,” he said.

Nonetheless, he believes GenAI is going to be the fastest growing technology supplier in 2024. Elliott added that it will become one of the “superpowers” of the procurement professional of the future, helping them to synthesize price, performance, and risk into simple and intuitive answers in a sourcing process.

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