I was asked the question “it was not so long ago that we just started walking upright – how can we navigate our way through the changes and challenges of automation and AI? “ when speaking on The Procurement Show recently. Here were my conclusions to the question:-

1. The most important thing is to accept that change is coming, physically, emotionally and mentally. Recent studies have shown that:-

1. by 2030 over 800 million jobs could be replaced by AI;
2. 120 million employees will need to undergo AI training in the next 3 years:

2. It is a time of great opportunity to be freed up to undertake more strategic tasks, create value and establish differentiation,  as many administrative tasks are now automated. This can make some demographics  feel vulnerable to the amount of change and adaptation they may face.  
3. AI and automation is very good at :-

1. Collecting a large amount of data and analysing it, 
2. Undertaking repetitive tasks- looking at patterns, facts and forecasting;
3. Designing and creating scenarios and options.

4. AI and automation is not intended, nor very good at setting norms and values. It cannot conceptualise, plan strategically or make choices. It cannot choose its own goals nor adopt common sense. This is where the human skills come into play. We have the opportunity to not just collaborate with colleagues but form a new collaboration between ourselves and the machine. We still should be involved in the ‘so what?” questions. 
5. Procurement departments may be able to reduce to a smaller number of higher calibre staff to manage the stakeholder and supplier interfaces. However, CPOs should educate their executive teams and Boards on cutting budgets too quickly if the following is still outstanding:-

1. P2P fully mapped, automated and embedded  in the business;
2. The processes which should be automated are fully automated;
3. Data input is accurate and optimised;
4. Interfaces with suppliers and other functions’ platforms is optimised;
5. Training is up to date for suppliers, stakeholders and procurement;
6. The Business is in steady state without crisis; or major change programmes;
7. I would encourage people to think about the fact that they’re not a machine, but a highly effective decision maker with the machine. 

For more on this multifaceted debate on ways of working, post pandemic, and the impact of AI and automation on our daily lives, with Jonathan O’Brien and Paul Philpott, go to the podcast  https://positivepurchasing.com/podcast-the-procurement-show/