GEP, leveraging its expertise as a leading provider of AI-driven procurement and supply chain strategy, software and managed services to Global 2000 enterprises, led The World Economic Forum’s year-long task force of more than 40 companies to provide businesses with a comprehensive and practical guide to apply artificial intelligence (AI) responsibly in commercial procurement.
Until now, there have been no standard benchmarks and assessment criteria to help commercial companies utilize AI to transform their enterprises and global value chains responsibly. This guidance enables businesses to evaluate and implement AI solutions to source materials and select suppliers that prioritize sustainable and ethical practices as well as value, cost of supply, and competitive advantage.
“In the gold rush to apply AI to improve how companies source suppliers and manage global supply chains, there is a very real risk that organizations will dehumanize decisions and unintentionally ignore waste, CO2 emissions, and inequality, with devastating consequences to business, communities and the environment,” explained Subhash Makhija, chief executive officer and co-founder, GEP.
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GEP and The Forum’s report, Adopting AI Responsibly: Guidelines for Procurement of AI Solutions by the Private Sector, which is available to download from GEP here and The Forum here, specifically provides commercial companies with a framework to:
- Develop strategic guidelines for AI in procurement, emphasizing transparency, accountability and human-centered design from development to implementation.
- Evaluate potential solutions based on bias, privacy, and security.
- Integrate ethical principles into the procurement criteria, operations, and processes.
- Deploy strong governance criteria, ensuring ethical principles are applied encompassing risk, equity, environmental impact as well as business and technology considerations.
“This framework is an essential resource for business and procurement leaders who want to guarantee that their organizations are at the forefront of socially responsible AI adoption,” explained Mudit Kumar, vice president, GEP, and lead fellow with The Forum.
Over the past 18 months, GEP and The Forum worked with more than 40 companies, including Appen, BenevolentAI, Boston Consulting Group (BCG), BP, Builder.ai, Credo AI, CrowdAI, CUJO AI, HCLTech, IBM, OmniBot.ai, Pryon, Retrain.ai, Scale AI, The Cantellus Group, and Versatile, to develop the guidance through workshops and interviews with technology, procurement and business leaders. The guidelines are premised on learnings from each member of the task force, for companies to acquire and embed AI technologies in their procurement function.
“Applying these practical steps will increase companies’ confidence that they’re effectively assessing suppliers, identifying risk, predicting disruptions, optimizing costs, and meeting their environmental and social goals, as well as future-proofing their AI investments,” said Kumar.
SOURCE: PRNewswire