AI Procurement
What is AI Procurement?
In the last year, as Posterity Global has evolved, AI has also been evolving at a rate businesses and procurement teams can’t keep up with. Whilst this is new and unfamiliar territory for most, our expert AI Procurement Team has been operating in this area since its emergence in public and near-public sector policy narrative and guidance.
But what does the term AI Procurement mean?
“When we say AI procurement we mean: acquiring AI systems and using AI to improve procurement operations. Specifically, the process of sourcing, contracting and deploying AI systems in an organisation, and also using AI to improve transparency, value for money, and efficiency in procurement operations.” David Kershaw
Now you understand the term, there is one more area to consider when looking to incorporate AI into your procurement operations.
"It is critical to apply all activities of the Digital Commercial Lifecycle® to maximise well-being impact and public value with AI systems, and additionally when using AI to improve operational effectiveness, efficiencies and inclusion across any of these activities." Warren Smith
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When we say 'AI' we draw from prevailing definitions used by multilateral organisations, such as the OECD, the United Nations, and the World Bank.
Why have we defined AI Procurement?
From our experience of ‘Digital Procurement’, ‘Procurement of Digital’, ‘Agile Procurement’ and ‘Procuring Agile Delivery’, we know it is imperative to have a common understanding. We believe Artificial Intelligence will have huge benefits to procurement operations, contract obligations, supplier relationship management and following organisational money. We know that organisations will therefore need to procure, award and manage contracts for AI services.
We also know that AI suppliers often find procurement baffling, bureaucratic and complex. We want to ensure supply markets can not only bid for (and win) AI contracting opportunities, but also successfully deliver the benefits of AI through commercial contracts in collaboration with their client partners.
Our expert AI Procurement Team has been operating in this area since its emergence in public and near-public sector policy narrative and guidance. We have been advising small, medium and large businesses, and public and near-public sector organisations about what to consider, mitigate and apply. We have three areas of expertise in which we publish specific insights and reports covering:
- BUY: We need to procure and contract AI services
- SUPPLY: We need to improve how we respond to procurements and deliver AI services
- USE: We want to use AI to make procurement better
Some of our work includes:
- Ensure you are ready for AI by migrating to the cloud
- Legacy Systems and AI Integration
- Multidisciplinary Team Approach
- Enhancing Procurement Skills and Process
These reports will be available for viewing shortly in our Knowledge area that is currently under construction.
