Is AI Overhyped: Is it Really AI, or Just Damn Good Programming? What Procurement Professionals Need to Know
Artificial intelligence (AI) has become the tech industry's favorite buzzword. From self-driving cars to recommendation engines, everything seems to be labeled with the "AI" tag. But is this a genuine revolution in computing, or just a case of good marketing for some very impressive programming?
For procurement professionals navigating the ever-evolving business landscape, understanding the true potential of AI is crucial. This article separates the hype from reality, exploring the difference between clever programming and genuine AI, and its implications for the future of procurement.
Beyond Pattern Recognition: Defining Real AI
There's a strong argument that much of what's touted as AI is simply clever programming. Consider a recommendation engine that suggests products you might like based on your past purchases. This is achieved through sophisticated algorithms that identify patterns and connections, but it doesn't truly mimic human thought. It doesn't understand why you buy the things you do, and it can't adapt its suggestions based on unexpected factors.
Real AI goes beyond simple pattern recognition. It involves the ability to learn and adapt independently, solve problems creatively, and make decisions based on incomplete information – all hallmarks of human intelligence.
Real-World Examples: Spotting AI in the Wild
Let's delve into some real-world procurement scenarios to illustrate the difference:
Not AI: Your smartwatch that "reminds" you to move after you've been sitting for too long. This is a pre-programmed function based on established health guidelines, not an AI making an independent judgment about your well-being.
Possibly AI: A spam filter that learns to identify new phishing attempts by analyzing email content and user behavior. Here, the filter might be able to adapt to evolving tactics used by spammers, demonstrating a rudimentary form of learning.
Closer to AI: A self-driving truck navigating a busy highway interchange. This requires real-time analysis of sensor data, traffic patterns, and even weather conditions to make split-second decisions. While the core programming might be extensive, the ability to react and adapt to unforeseen situations pushes the boundaries of AI.
The Road to True Artificial Intelligence and its Impact on Procurement
This doesn't diminish the impressive feats of modern programming. The ability to analyze vast amounts of data and identify complex patterns is incredibly useful in procurement. But it's important to have a clear understanding of what AI truly is – a machine that can not only think, but think for itself.
The field of AI research is making significant strides. Machine learning algorithms are becoming more sophisticated, and areas like natural language processing are blurring the lines between human and machine communication. But true artificial general intelligence (AGI), a machine with human-level understanding and reasoning, is still likely far off.
However, even limited forms of AI can have a significant impact on procurement. We can expect to see AI-powered tools automating routine tasks, analyzing supplier data for better risk management, and even optimizing negotiation strategies.
The Future of Procurement: A Healthy Dose of Skepticism and Strategic Adoption
So next time you see something labeled "AI" in the procurement space, take a moment to consider what's really going on. It might just be some damn good programming, paving the way for a future where true AI can finally emerge. In the meantime, a healthy dose of skepticism can help procurement professionals separate genuine advancements from clever marketing tactics.
By understanding the true potential of AI and strategically adopting these tools, procurement professionals can position themselves for success in the ever-evolving business landscape.
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By Zoheb Shah - Procurement Futurist, Disrupting the Status Quo