Over the past few years (it’s hard to say since when, exactly), the procurement technology industry and the business technology industry as a whole have embraced the term “artificial intelligence,” or AI. They have taken a term of art for computer engineers, data scientists, and mathematicians meaning the study of how machines use data and self-learning techniques to understand and replicate human cognition and task execution and turned it into one of the most commonly-used buzzwords of our time. Microsoft has even enlisted Common as a spokesperson for AI, taking it from marketing collateral to prime-time TV (nothing against Microsoft or Common, by the way).
It’s tempting to get persnickety when people talk about AI for procurement, or any other industry for that matter. I have to remember that most of us aren’t computer engineers, data scientists, or mathematicians (I’m sure not, but I did stay at a Holiday Inn Express last year), and that we as people and as marketing teams like to use terms like AI loosely. But something’s different about this one; people are starting to get real about AI — about what it really is and isn’t.
Getting Real about AI
I’ve been seeing more and more solution providers and tech writers, in so many words, ask the question, “Is that really artificial intelligence, or something else?” Then they often make an important distinction: what is really meant is augmented intelligence, not artificial intelligence, because the latter is still years and years (and years!) away, and the former gets to the heart of what all of this technology does for end users: it augments the user experience. But let’s take a step back.
When defining the term, artificial intelligence, it may be more helpful (and easier) to begin by describing what it is not: true AI is not automation, deterministic or search-based algorithms, machine learning, or natural language processing (NLP), per se. It is sometimes used synonymously with these technologies, which is an incorrect and simplistic view of the technology. For some end users, a system that is automated, employs algorithms and machine learning to study user data and adapt to their behaviors, and uses NLP to answer queries and provide push notifications meets their definition of artificial intelligence (also referred to as “cognitive computing”). However, the truth is that the concept of AI is a little more sophisticated than that.
Surely, AI as a concept incorporates these technologies and innovations, plus Big Data and data management/analytics engines, to provide greater intelligence, efficiency, and value to end users. And when AI’s proof of concept materializes, intelligent procurement systems will be a function of these technologies and innovations. But unlike current “intelligent” systems, truly intelligent systems will mimic and augment human-driven business processes while functioning independently of the human hand. As envisioned, true AI will be heuristic, predictive, and proactive decision-making technology, whereas current “intelligent” systems still must rely on human interfacing and can only provide historical views of past business decisions.
Augmented Intelligence: Still AI — Still Powerful
Now that I’ve burst your AI bubble, let’s remember that augmented intelligence is just a more precise and accurate term for what we as business users and consumers experience daily. It is the collective arsenal of technologies that allows our “smart” devices to ingest data, parse it in real time, and engage with us to help us carry out every day tasks and make the best decisions. It is the coding and intelligent process automation that “know” to pull enterprise spend data from across multiple business units, centralize it in data lakes, and categorize, cleanse, and enrich the data for analysis. It is the machine learning algorithms embedded within eProcurement tools that predict our next purchases and make recommendations to us. It is the chat bots in the desktop margins that take our routine queries and escalate them when the matter is not so routine. It is the NLP- and speech recognition-enabled virtual assistant that you speak to, ask questions, and make requests of, and that answers you back.
In short, augmented intelligence is here to augment us in our daily lives — not replace us (and it has a less threatening ring to it than artificial intelligence, doesn’t it?). Augmented intelligence is getting the distinction it deserves, and taking the heat off of data engineers, scientists, and mathematicians that continue to drive the field forward and transform artificial intelligence from science fiction to science fact.
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Tagged in: Ardent Team, Artificial Intelligence, eProcurement, Industry 4.0, Innovation, Process, Spend Analysis, Technology, Transformation
