To add to the already long list of existing and confusing digital technology acronyms; we have Intelligent Automation (IA). IA uses AI but builds on automation technologies such as Robot Process Automation (RPA). The diagram below illustrates the intersection perfectly.
Our previous articles have highlighted that AI is not yet widely adopted by many organizations and remains largely at the proof of concept stage.
A recent report from Hackett Group [2024 Procurement Agenda and Key Issues Study] underscores the progress of digital automation adoption and better illustrates the relative adoption success between RPA and AI. According to Hackett, RPA is adopted, or in the process of adoption, by 51% Procurement functions studied compared to 28% for AI.
RPA is not AI
RPA uses rule based scripting to integrate and perform repetitive tasks. It follows a process defined by the end user, however RPA can utilize AI agents. These AI agents can recognize patterns in data, in particular unstructured data, learning over time.
Value Proposition Expectation
The Hackett study differentiates between solution suites, such as ERP, and point technology solutions. Gen AI, RPA and ChatBots are all point solutions. The low level of large scale deployments of Gen AI (5%), RPA (19%) and Chatbots (6%) suggests a need to join up the ‘points’ and develop more suite solutions for procurement organizations to leverage.
Looking into the crystal ball and beyond the current AI hype, the combination of technologies would suggest that IA, which incorporates sub-disciplines of AI, like ML and Natural Language processing (NPL), is the logical and practical ‘suite solution’ outcome which we predict to be the digital automation toolset that provides real executable value for procurement.
IA could be that sweet spot that realizes the true potential of AI to deliver business value.
AYSCO CONSULTING 