Whilst the swift advancement of Artificial Intelligence (AI) is transforming our world – from self-driving cars to virtual assistants – many business areas still remain unprepared for the adoption of AI. Equally, AI is yet to be fully equipped to serve these industries. In this article, we’ll explore how companies can enhance their operations whilst simultaneously preparing for effective AI implementation when the time is right.
AI holds huge potential for reshaping the way organisations function. Whether it’s automating mundane tasks, honing decision-making processes, or personalising customer experiences, AI has the ability to play a pivotal role. By leveraging AI, organisations can streamline operations, enhance customer satisfaction, save on costs, and gain a competitive edge.
However, diving into AI is not a simple feat. It requires a clear understanding of an organisation’s needs and objectives. Additionally, adequate resources like data, expertise, and technology are crucial to realise the benefits of AI. Nevertheless, the potential rewards of successful AI implementation are significant, leaving well-prepared organisations on the front foot for the future.
To simplify AI adoption, Changewell has developed the ‘AI definition and entanglement axis.’ This concept emphasises that AI introduction is more straightforward when tasks are clearly defined and separated from complex processes.
Consider an organisation grappling with commercial capacity, which leads to complications in procurement and commercial delivery, such as procurement throughput and contract performance management. While many solutions exist to mitigate these issues, some organisations may opt for technology, specifically AI.
It’s essential to take a phased approach rather than rushing into AI adoption, especially when the activities to be automated are intricately linked to complex processes. The initial phase should focus on centralising these activities, which essentially lays the groundwork for subsequent AI implementation and automation.
For instance, consider using AI for contract administration, which involves various physical processes like advertising contracts, tracking deliverables and obligations, and identifying supplier obligation deviations. Centralising contract administration not only prepares teams for AI adoption but also provides several other benefits:
– Improved data visibility and control: Centralising allows all contract data to be stored in one place, enhancing accessibility, accuracy, and consistency. Often, teams overlook data integrity, but a centralised team with a specific scope can prioritise and improve data quality.
– Reduced costs: Centralisation can cut costs and enhance commercial staff capacity by eliminating the need for multiple systems and reducing manual data entry.
– Improved compliance: Centralising can aid organisations in complying with regulations by ensuring contracts are managed according to legal and internal policy requirements.
– Increased efficiency: Centralising can boost efficiency by leveraging economies of scale and focusing tasks, which reduces time spent on switching between tasks.
Once centralised, integrating AI and automation becomes substantially more straightforward. Not only will the benefits mentioned above continue to build, additional advantages also emerge:
– Automating tasks: AI can take over repetitive tasks, such as uploading deliverables or even contract review and analysis, freeing up human staff for strategic and creative duties.
– Improving decision-making: AI can analyse vast amounts of contract data to identify trends and patterns, enabling smarter decisions regarding contract pricing, risk management, and performance management.
AI-enabled contract administration can significantly enhance the efficiency and effectiveness of contract management processes. By following the steps outlined here, organisations can make a smooth transition to AI-enabled contract administration and gain a competitive advantage.
The widespread adoption of AI is on the horizon. Preparing now to harness its possibilities is the best way to future-proof organisations. By laying strong foundations for successful AI implementation, business leaders can unlock tremendous potential and agility.