NEW GEP & WORLD ECONOMIC FORUM GUIDELINES MAKE RESPONSIBLE AI IN PROCUREMENT AND SUPPLY CHAINS POSSIBLE
- Guidelines launched today enable companies to ensure generative AI is applied responsibly to optimize cost, efficiency, resilience, and advance sustainability in procurement and value chains
- Practical guidelines developed over the past 18 months by a GEP-led task force of 40+ leading companies, including Boston Consulting Group (BCG), BP, Dell, HCL, IBM, Credo AI, Appen, Pyron, Builder.AI and many other leading enterprises
- Read Adopting AI Responsibly: Guidelines for Procurement of AI Solutions by the Private Sector here
CLARK, N.J., June 30, 2023 /PRNewswire/ -- 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.
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.
About The World Economic Forum
The World Economic Forum, committed to improving the state of the world, is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas. (www.weforum.org)
About GEP
GEP® delivers transformative supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Fresh thinking, innovative products, unrivaled domain expertise, smart, passionate people — this is how GEP SOFTWARE™, GEP STRATEGY™ and GEP MANAGED SERVICES™ together deliver supply chain solutions of unprecedented scale, power and effectiveness. Our customers are the world's best companies, including more than 550 Fortune 500 and Global 2000 industry leaders who rely on GEP to meet ambitious strategic, financial and operational goals. A leader in multiple Gartner Magic Quadrants, GEP's cloud-native software and digital business platforms consistently win awards and recognition from industry analysts, research firms and media outlets, including Gartner, Forrester, IDC, ISG, and Spend Matters. GEP is also regularly ranked a top supply chain consulting and strategy firm, and a leading managed services provider by ALM, Everest Group, NelsonHall, IDC, ISG and HFS, among others. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit www.gep.com.
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GEP
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