What AI will never do in Procurement (and any other function): Replace Interpersonal Skills & Human Relationships

Having lunch couple weeks ago with a Procurement network friend of mine here in Singapore, we were discussing and brainstorming the potential impacts of AI into the Procurement function, processes, systems, ways of working, etc. We certainly identified plenty opportunities and advantages of using AI into lots of processes and systems, which will bring speed, traceability, visibility, resilience, agility, etc and will help increase a data-driven decision-making culture into many organizations, all these are incredibly positive, and companies shall leverage as much as possible.

But can you imagine when an AI driven system tells you to choose Supplier A versus Supplier B, which might not have the technical capability to execute a specific project developing ESG supply chains, because AI has limited knowledge about supplier’s staff (human) execution capabilities and will never be able to identify those given this capability can only be known by someone who has experienced it (human factor). AI will take whatever is posted in the supplier website and their ESG reports, but from a power point presentation or nice website ESG section to reality to execution level there can be a big gap, we see this all the time. Take for example, the consulting companies who tend (not always) to overpromise results of their services and might try to sell them with a genuinely nice and structured presentation. Am sure many of us have seen in the past how when you hire consultants, it is until the execution phase that you start seeing the cracks in the walls and their real strengths and weaknesses.

This is where human relationships and interpersonal skills will become even more relevant than ever, AI will not be able to identify what kind of people different suppliers might have and their capabilities to support on specific topics that are now becoming so important such as ESG. This is just one example of where AI will always be limited, but there are many more.

So, what can organizations do to make sure its Procurement teams have the sufficient expertise on interpersonal and relationship skills and yet still leverage as much as possible AI capabilities into their systems and processes? Grow those skills, and if they are not there then develop them, they can be developed. What are those skills?

-         Communication

-         Relationships Development (internal and external stakeholders)

-         Stakeholders Management

-         Active Listening

-         Empathy

-         Collaboration

-         Emotional Intelligence

-         Etc….

The list can be bigger, but first it would better to partner with your HR department and do an overall team interpersonal skills assessment of your team, from there it will be easier to identify the strengths and the gaps. Nowadays there are many companies that can help develop and grow those skills, usually is better to outsource these services given that people tend to have biases over internal leaders or colleagues and therefore credibility and engagement levels might vary between team members, you want to avoid these.

Partner with companies such as Forest Wolf (https://forestwolf.com) , led by Crystal Lim-Lange , who together with her team do an amazing work advising on talent management and leadership to many companies, this is just one option there are many out there, you can find them all in LinkedIn.  AI is here to stay and change our lives forever, do not wait too long to start developing your talent!

Leverage and maximize AI capabilities into your systems and processes, but do not let this amazing new technology blind you and your leadership team of how important human relationships and interpersonal skills have now become if your organization wants to thrive.