Responsible AI is a set of strategies and practices designed to find and reduce the risk of AI-influenced decisions and autonomy-supported activities performed in the course of business operations. For procurement teams, Responsible AI includes defining accountability and governance for AI systems that may be used by suppliers on behalf of a customers’ business, rather than AI that’s solely used by employees within the business’ four walls. Rather than introducing new processes and compliance practices, our certificate program shows how best-in-class procurement teams are integrating RAI into existing workstreams such as: stakeholder engagement, category management, strategic sourcing, supplier scorecards and reviews, and third-party risk management. Because suppliers are more likely to adopt AI for critical business functions before large enterprises, the use of AI by suppliers is often happening without the full awareness and consent of business stakeholders. Thus, our certificate presents both management frameworks and practical tools for procurement teams to discover and reduce AI risk through supplier questions in RFPs, governance recommendations for stakeholder engagement sessions, and accountability measures to help teams avoid snafus where individuals attempt to skirt responsibility by saying “the model made me do it.”
Companies use Responsible AI for Suppliers and Third Parties to adapt their procurement processes to a world of ubiquitous AI that many market analysts will be part of a macro-economic change with larger societal implications than the introduction of the Internet. Responsible AI can also be a way to streamline supplier onboarding, avoid last-minute interventions into negotiations by Ethical AI Councils and has a data-driven internal business case that can also result in dramatic cost reductions, especially for in categories where service provider suppliers are rapidly implementing AI to perform dramatically more tasks per headcount per hour. By aligning this cost reduction opportunity with a Responsible AI program, procurement teams can help make sure that the profit margin expansion resulting from a suppliers’ adoption of AI is also shared with the procuring organization through improvements to pricing, targeted incentives, and performance-based rebates.
To put it simply, a Responsible AI governance plan for procurement teams helps companies achieve big goals that contribute to their success. That’s why it’s important to learn about the risks and opportunities available to your role linked to Responsible AI, helping you position yourself as a strategic thought partner to business stakeholders fearful or excited about AI.