One of my earliest memories of advanced technology involves voice recognition software. I was home from college, getting ready to fly back to school, when I overheard my dad on the phone. He was struggling to communicate with the airline’s automated system. He repeated my airline's name twice, carefully enunciated my flight number, and then, in frustration, shouted "Operator!" multiple times.
Since then, we’ve moved from automated systems through the phone to in-home virtual assistants like Siri, Google or Alexa. These advancements have made our lives significantly easier, and they continue to evolve.
Technology has grown by leaps and bounds – and it’s not just limited to voice recognition. It’s also playing a crucial role in simplifying complex procurement processes and enhancing user experiences. Today, voice recognition is just one of the many tools helping to automate and streamline operations.
Among the most transformative technologies are AI-assisted chatbots, copilots, and agents, which are revolutionizing how procurement professionals interact with systems and data.
Chatbots have been around for a while. They started off by handling basic queries, but their capabilities have expanded significantly with the advent of generative AI (GenAI). Now, chatbots can understand and process natural language, which makes each interaction more intuitive.
Copilots offer sophisticated, conversational capabilities. They act as strategic assistants and help procurement professionals navigate complex workflows and make informed decisions based on business context.
Agents are designed to autonomously perform complex, multistep workflows. They use AI to plan, reason, and execute tasks, allowing procurement teams to increase activity levels while also focusing on strategic objectives.
How You Can Use Chatbots and Copilots
In procurement, chatbots can guide users through procurement processes with predefined rules. They often provide standard responses to frequently asked questions on policies, processes, and procedures.
SAP's copilot, Joule, integrates seamlessly across SAP applications, including SAP Ariba and SAP Fieldglass solutions, to enhance procurement operations and leverage business context with historical data to guide users conversationally. Joule can also help with tasks like approvals, running reports, and answering questions like:
- Which suppliers have responded to our sourcing event?
- Where are the time sheets I need to approve?
- Who is the final approver for my high-profile project?
In addition to improving productivity, these technologies offer multiple benefits for procurement, such as:
- Enhanced user experience. Intelligence is directly embedded into the user interface, ensuring interactions are part of everyday activities.
- Streamlined processes. Automation of tedious and complex tasks like generating RFxs makes it easier to ensure compliance and maximize efficiency.
- Better supplier management. Advanced insights help teams manage supplier performance data to reduce risks and strengthen critical relationships.
The Future of Agents
In many ways, the frustration my dad experienced with that early voice recognition system feels like a distant memory. Today, we have numerous apps to help track flights. However, in some ways, the frustrations still feel relevant because some of these systems remain a work in progress. Regardless, it’s clear that technology is advancing with a focus on making it more intuitive and user-friendly.
Agents will revolutionize procurement by autonomously executing complex, multistep workflows and accelerating cross-functional operations, which will continuously run and ultimately free up resources. These agents will work alongside you and your colleagues, ensuring collaboration and oversight while enhancing efficiency and accuracy in procurement processes.
As these technologies evolve, they will transform procurement from a process-driven function to a strategic enabler.
Take the Next Step
Learn more about how these innovations are shaping the future of procurement. Join us for our March 27 webinar* with Pierre Mitchell, chief research officer at Spend Matters, to explore the potential ways you can use chatbots, copilots, and agents to drive procurement excellence in your organization.
Register today
*This webinar will be available in multiple time zones.
