Are AI and ESG the Future of Procurement?

Artificial Intelligence

Mokshita P.
Artificial Intelligence
Published:

Are AI and ESG the Future of Procurement?

Discussions in Saudi Arabia and UAE underscore advancements in procurement technology, emphasising AI integration and ESG considerations to navigate evolving supply chain landscapes effectively.

JAGGAER, a leading company in procurement technology, recently hosted roundtable discussions in Saudi Arabia and the UAE for Chief Procurement Officers (CPOs). These events brought together industry leaders to tackle the evolving landscape of procurement and supply chain management.

They highlighted key priorities for CPOs, such as AI, cost optimisation, supplier risk management, procurement talent, and ESG considerations. From these discussions, AI and ESG emerged as the most critical topics for the industry right now.

Hany Mosbeh from JAGGAER emphasised their commitment to empowering CPOs with advanced technology to navigate complexities and achieve sustainable growth. Particularly, ESG considerations are gaining importance, reflecting global efforts to promote sustainable practices and ethical supply chains.

JAGGAER's software integrates ESG factors into procurement strategies, helping to mitigate risks across supply chains and engage stakeholders effectively. This approach not only aligns with global sustainability goals but also enhances long-term business benefits by meeting consumer expectations for ethical business practices.

Regarding AI, JAGGAER's research indicates significant benefits for procurement professionals, such as streamlining processes, gaining valuable insights, and automating tasks like bid evaluations and supplier management. AI serves as a central hub for communication, enhancing procurement workflows and decision-making.

Looking ahead, a recent survey highlighted by JAGGAER shows that strategic sourcing and managing spend remain top priorities for CPOs in 2024. Challenges like inflation and talent gaps in procurement also underscore the complexity of achieving cost savings and operational efficiency.

In summary, these insights from JAGGAER underline how technology and strategic focus areas like AI and ESG are shaping the future of procurement, addressing challenges, and driving sustainable business practices in the Middle East and globally.