GEP and WEF release guidelines for responsible AI in procurement
GEP, a global supply chain software and consulting firm, and The World Economic Forum (WEF) have released a comprehensive guide to help business apply artificial intelligence (AI) responsibly in commercial procurement.
The report – “Adopting AI Responsibly: Guidelines for Procurement of AI Solutions by the Private Sector” – was developed over the past 18 months in concert with leading companies including Boston Consulting Group (BCG), IBM, Dell, and BP. Procurement and business leaders from over 40 firms participated in workshops and interviews to help inform the report.
The GEP-led report aims to fill a lack of standard benchmarks and assessment criteria for integrating AI into supply chains to drive ethical practices and sustainability.
“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 devestating consequences to business, communities, and the environment,” said Subhash Makhija, CEO and co-founder of GEP.
The report provides a framework to deploy strong governance criteria in transparency, risk, equity, and environmental impact, as well as integrate ethical principles into procurement criteria, operations, and processes.
“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 Mudit Kumar, vice president, GEP, and lead fellow with WEF.
