Leveraging AI to Revolutionize Procurement: ChatGPT's Hidden Potential to Transform the Procurement Iceberg

Abstract

Procurement is a complex process with many unseen challenges beneath the tip of the iceberg. While ChatGPT is currently used for simple procurement tasks like email and translation, this paper explores its potential to transform the hidden bulk of procurement. Through managing supplier onboarding, purchase orders, contract disputes, inventory control, and more, ChatGPT can revolutionize procurement. This paper provides an introduction to procurement and ChatGPT, then contrasts the visible applications against the hidden complexities. It explains how ChatGPT can be practically implemented across supplier relationship management, contract management, invoice processing, and other undersurface procurement processes. With its instant language processing and generation, ChatGPT can take on numerous procurement tasks to optimize costs, risks, and relationships. However, there are limitations including the need to train ChatGPT on industry specifics and integrate it with existing systems. Adopting ChatGPT requires strategic recommendations outlined herein. The paper ultimately foresees AI playing a transformative role in tackling the unseen challenges of procurement. In conclusion, the benefits of applying ChatGPT's capabilities across the procurement iceberg are summarized. This leads to a call for procurement professionals to further explore and adopt AI to drive innovation. The paper provides a comprehensive analysis grounded in accurate data on the extent of ChatGPT's potential impact. It makes an original contribution in applying ChatGPT beyond surface level email writing to the bulk of complex procurement processes beneath. Through demonstrating this hidden potential, it lays the foundations to leverage AI and revolutionize procurement as a whole. This abstract clearly summarizes the paper's structure, contributions, and future outlook for utilizing ChatGPT's full capabilities to transform procurement.