**London**: The ISG Provider Lens™ report highlights the transformative effects of generative AI and intelligent automation on supplier relationship management across European enterprises, emphasizing the rising demand for responsible AI in improving operational efficiencies while navigating stringent regulatory environments.
The recent ISG Provider Lens™ report has highlighted the transformative impact of generative AI (GenAI) and intelligent automation on supplier relationship management (SRM) in European enterprises. Published by Information Services Group (ISG), a prominent global technology research and advisory firm, the report reveals that the demand for GenAI and responsible AI frameworks is significantly influencing operational improvements within businesses across various industries.
According to Steve Hall, Chief AI Officer at ISG, “GenAI has the potential to revolutionise intelligent automation, enabling organisations to analyse vast datasets and enhance their operational efficiencies.” This advancement in GenAI, which employs large language models (LLMs) for data analysis and output generation, facilitates better insights into unstructured supplier data. Consequently, enterprises can streamline their SRM processes, thereby enhancing decision-making.
The study noted a shift in enterprise focus towards comprehensive automation solutions, particularly in sectors such as automotive, healthcare, finance, and retail, where operational efficiency is paramount. Jan Erik Aase, partner and global leader of ISG Provider Lens Research, remarked, “The demand for intelligent automation services in Europe is rising”, emphasising a movement away from fragmented approaches towards integrated systems that better manage supplier relationships.
Despite the increasing adoption of GenAI, European organisations appear to be more cautious compared to their North American counterparts. A notable reason for this reticence is the stringent regulatory environment governing AI technology, which includes frameworks like the EU AI Act and General Data Protection Regulation (GDPR). The pressures of compliance also foster a demand for ethically responsible AI, particularly in the context of SRM where data handling is critical.
Furthermore, the emergence of agentic AI is set to catalyse advanced applications in crucial areas such as supply chain management. Unlike traditional automation solutions which target specific tasks, agentic AI represents an evolution towards self-sufficient systems capable of context-aware decision-making. This development could greatly enhance the ability of enterprises to manage supplier interactions effectively, ensuring responsiveness and adaptation within complex supply ecosystems.
The report echoed that organisations face significant hurdles regarding the implementation and scalability of GenAI technologies, particularly concerning the integration of these advanced systems with existing legacy infrastructures. Automation service providers play a vital role in overcoming these challenges by offering expertise in technology integration and aligning services with the varying levels of automation maturity present in different enterprises.
In addition, the report has identified 39 suppliers, evaluating their capabilities in three key quadrants: Intelligent Enterprise Automation, Artificial Intelligence for IT Operations (AIOps), and Next-Gen Automation. Notable leaders in the field include Accenture, Capgemini, and Wipro, each being acknowledged for excellence across multiple quadrants.
The findings suggest that as enterprises strive to advance their SRM practices through the adoption of intelligent automation and GenAI, the role of service providers will be critical in navigating regulatory landscapes and leveraging technology to create more effective and sustainable supplier relationships. The comprehensive insights offered by the ISG report are critical for organisations looking to enhance their operational frameworks amidst the rapidly evolving technological landscape.
Source: Noah Wire Services
Subscribe to Industry Updates
