Category Archives: AI

China is Leading in AI!

And the real reason why? The courts are defending labour rights and NOT allowing companies to replace workers with AI.

As per a recent posting over on “The State Council Information Office (of) The People’s Republic of China” on April 30, 2026: (Source)

“A Chinese court has ruled in favor of a human employee in a labor dispute caused by AI replacement, which experts said may send a reassuring message to labor rights protection efforts in the age of automation.”

Furthermore, this was not the first time!

On December 26, 2025, the Beijing Municipal Bureau of Human Resources and Social Security released a set of arbitration cases for 2025, including a dispute triggered by AI-driven job displacement. In that case, the arbitration panel made it clear that ๐€๐ˆ ๐ซ๐ž๐ฉ๐ฅ๐š๐œ๐ž๐ฆ๐ž๐ง๐ญ ๐๐จ๐ž๐ฌ ๐ง๐จ๐ญ ๐ฏ๐š๐ฅ๐ข๐๐š๐ญ๐ž ๐š ๐๐ข๐ฌ๐ฆ๐ข๐ฌ๐ฌ๐š๐ฅ. It found that adoption of AI technology is a voluntary move to stay competitive and not one that is mandated or acceptable as a basis for human replacement and dismissal.

Furthermore, legal scholars in China are emphasizing that ๐ญ๐ก๐ž ๐œ๐จ๐ฌ๐ญ๐ฌ ๐จ๐Ÿ ๐ญ๐ž๐œ๐ก๐ง๐จ๐ฅ๐จ๐ ๐ข๐œ๐š๐ฅ ๐ญ๐ซ๐š๐ง๐ฌ๐Ÿ๐จ๐ซ๐ฆ๐š๐ญ๐ข๐จ๐ง ๐ฌ๐ก๐จ๐ฎ๐ฅ๐ ๐ง๐จ๐ญ ๐›๐ž ๐›๐จ๐ซ๐ง๐ž ๐ฌ๐จ๐ฅ๐ž๐ฅ๐ฒ ๐›๐ฒ ๐ฐ๐จ๐ซ๐ค๐ž๐ซ๐ฌ and that while ๐ญ๐ž๐œ๐ก๐ง๐จ๐ฅ๐จ๐ ๐ข๐œ๐š๐ฅ ๐ฉ๐ซ๐จ๐ ๐ซ๐ž๐ฌ๐ฌ ๐ฆ๐š๐ฒ ๐›๐ž ๐ข๐ซ๐ซ๐ž๐ฏ๐ž๐ซ๐ฌ๐ข๐›๐ฅ๐ž, ๐ข๐ญ ๐œ๐š๐ง๐ง๐จ๐ญ ๐ž๐ฑ๐ข๐ฌ๐ญ ๐จ๐ฎ๐ญ๐ฌ๐ข๐๐ž ๐š ๐ฅ๐ž๐ ๐š๐ฅ ๐Ÿ๐ซ๐š๐ฆ๐ž๐ฐ๐จ๐ซ๐ค.

This is the thinking that will allow for actual progress and development.

AI is not intelligent, humans are still needed, and progress will be made when we stop accepting the BS that AI can replace us and instead only listen to and work with companies that state that appropriately designed, implemented, and/or restricted AI can augment us in our jobs and make us 3, 5, and even 10 times more effective — enabling us to be super human workers.

It might be too late for the US, but if Chinese courts continue to make rulings that indicate that ๐œ๐จ๐ฆ๐ฉ๐š๐ง๐ข๐ž๐ฌ ๐ฐ๐ก๐จ ๐›๐ž๐ง๐ž๐Ÿ๐ข๐ญ ๐Ÿ๐ซ๐จ๐ฆ ๐€๐ˆ-๐๐ซ๐ข๐ฏ๐ž๐ง ๐ž๐Ÿ๐Ÿ๐ข๐œ๐ข๐ž๐ง๐œ๐ฒ ๐ ๐š๐ข๐ง๐ฌ ๐ฆ๐ฎ๐ฌ๐ญ ๐›๐ž๐š๐ซ ๐œ๐จ๐ซ๐ซ๐ž๐ฌ๐ฉ๐จ๐ง๐๐ข๐ง๐  ๐ฌ๐จ๐œ๐ข๐š๐ฅ ๐ซ๐ž๐ฌ๐ฉ๐จ๐ง๐ฌ๐ข๐›๐ข๐ฅ๐ข๐ญ๐ข๐ž๐ฌ, it won’t belong before China is truly dominating the world (since the US will have no competent employees left when everything goes to hell).

Ontologies Could Have Saved Us — But in the Age of Gen AI, They Might Just Ruin Us!

What is an Ontology?

Philosophically, an ontology is the study of being, existence, and/or reality that is designed to investigate not only what entities exist but how they can be categorized.

In computer science and, more specifically, the data age, an ontology is a formal, machine readable, specification of entities, their properties, and their relationships within a domain that is used to structure information in a way that systems can share and structure it.

In the early days of semantic technology, an ontology was used to structure data in a meaningful way to allow sophisticated models to process, and make sense of, natural language with relatively high degrees of accuracy. It was usually expressed in a formal ontology language that allowed for detailed entity, relationship, part of speech, and even concept definitions. They were often defined in such a way they could be organized into interconnected libraries which formally organized knowledge into large, connected, corpuses that could be deterministically processed (hallucination free) and completely understood by any application that was capable of processing the language the ontologies in the library were encoded in.

And this was the true beginning of the semantic web, which was also known as Web 3.0, which was still in its infancy in the 2010s, but starting to take off by early (early) adopters (with almost 2% of web domains containing semantic markup circa 2014).

But then five things happened.

1. SaaS exploded, and so did the need for data, and the ability to consume it in standard formats.

2. GPT-1 was released in 2018 and the Gen-AI craze began shortly thereafter, leading us down the hallucinatory hole of incessant inanity that every consultant thought could power everything.

3. This led to the agentic craze, which increased the demand for data (and the desire to consume it in structured formats).

4. Every SaaS provider, and their dog all of a sudden needed multiple, steady, streams of data in standard formats to power their agentic applications.

5. In response, every data provider responded by adopting a simple data standard, calling it an ontology, even if all they were serving up was average scope 3 carbon data by country and factory type.

And now the term has no meaning since it’s the term used by every SaaS vendor and data supplier to essentially describe their data file structure. No formality. No relationships. No underlying structure that allows the machine to actually reason. Just another random data file blended into the data soup that feeds the hallucinatory engine that will tell us to go over the cliff like lemmings (and lead countless to their deaths as they cognitively surrender to what the AI tells them to do).

What could have been our saving grace (if Web 3.0 research had continued and true ontologies of ontologies had been created) might soon be the source of our demise as Gen-AI blends together mismatched data with flawed reasoning and produces the digital equivalent of toxic waste.

In two weeks — ALL YOUR DATA BELONGS TO MUSK, ZUCKERBERG, NADELLA, and ALTMAN!

Not being facetious here! It could be step 1 in Musk’s plan to own all your data!

A ruling in two weeks could ultimately result in ALL YOUR DATA BELONGING TO MUSK, ZUCKERBERG, NADELLA, and ALTMAN!

In only two weeks, Texas Third Court of Appeals has a hearing on an emergency motion by Alex Jonesโ€™ lawyers that temporarily blocked the transfer of any Infowars assets. (Which were supposed to be transferred and sold to pay off the more than US$1 billion in defamation lawsuit judgments for the relatives of the victims of the 2012 Sandy Hook Elementary School shooting.)

Now, whether or not you agree with that judgement or not or the sale or not, that’s not important. What’s important is that on October 14, 2024, LATHAM & WATKINS LLP, on behalf of X Corp., filed a “Notice of Appearance and Demand for Service of Papers” relating to the case and then, on November 25, 2024, filed a statement on “X CORP.โ€™S LIMITED OBJECTION TO TRUSTEEโ€™S PROPOSED SALE MOTIONS”.

Now if you think this has anything to do with Musk trying to protect Jones, Infowars, or its assets, you’re wrong.

Let’s take paragraphs 1, 2, 3, 4, 25, 26, and 36.

1: Objects to the sale of any account on the “X” platform.

2: Specifically, Infowars, Banned.Video, WarRoomShow, RealAlexJones, and any other account on X belonging to FSS or Jones

3: because accounts on X are X. Corp’s exclusive property

4: and X-Corp is the sole owner

25: and has ultimate control over the accounts.

26: While section 3 of the X Terms of Service (TOS) makes clear the account holder owns the content, section 4 gives X Corp broad rights to “access, read, preserve, and disclose any information”.

36: In addition to being a personal license, the license X Corp. grants to account holders
is an intellectual property license.

Getting the picture? Probably not. Let me spell it out.

An account belongs to the person or an authorized person from a legal entity that creates the account (and, in the latter case, can only be transferred to another person from that legal entity) and cannot be transferred to anyone else under those terms of services.

As a person, you can only access the account as long as you personally are mentally and physically capable of doing so and do not violate the terms of service. As a legal entity, as long as you remain a valid legal entity and have a valid designate to do so.

When these conditions cease to be met, your access is denied, and your account eventually shut down, but X Corp. retains the right to preserve, access, and read that data for eternity, while your (or anyone else’s) rights to such data effectively expire (unless you preserved a copy of such data off of the platform, and transferred your copyright to another entity before you died) as you no longer have a copy or the ability to prove copyright. That data then effectively becomes property of X Corp.

And this is Musk’s effort to have a Judge state that this is legally correct. Because, like its peers, xAI used every available bit of data on the internet to train its models, including every copyrighted book, song and movie/tv show in digital format they could access. And, like his peers, Musk doesn’t want his company sued. (And that’s the real reason there is a 10-year moratorium on AI regulation. It’s not to catch up to China. It’s not to ensure the government has the ability to experiment without recourse in civilian monitoring, military, and electioneering efforts. It’s so the politicians don’t lose access to the biggest money pots out there.)

This is the first step. Have a judge say that social media platforms (where internet users spend most of their time and post most of their data) legally own the service, which is defined as non-transferable in the TOS which also allows the platform to retain all data posted indefinitely. Have the the only copy of the data when the service is abandoned or terminated and assume the rights by default. Then you can’t be sued because you now own the data (because you will by the time the no AI regulations moratorium expires and laws actually get passed).

Sources:

1) CP24.com

2) KUT.org

3) Demand for Service of Papers

4) LIMITED OBJECTION TO TRUSTEEโ€™S PROPOSED SALE MOTIONS

The Proliferation of AI-Generated Content Guised As Research is Damaging Our Space!

Real Research Requires Real Human Intelligence and Effort

(I’m not here to be nice. I’m here to educated and inform. Something most sites, including LinkedIn, are doing very little of lately!)

Joรซl Collin-Demers recently made the understatement of the year when he said 15 functionalities comparing ZIP to Jaggaer isn’t analysis/comparison, it’s pattern-matching by an LLM with no domain context. At best it’s unhelpful. At worst it points procurement leaders toward the wrong tools entirely in response to, with no due respect, a complete crock of AI sh!t published by TEEM.Finance (and reported by a TEEM member who claims instant supplier sourcing & portfolio analysis, with AI# in the tagline, which is another crock of AI sh!t that I must also address).

First of all, at best someone selects an inferior product, wastes a lot of time and money, and ends up in a situation where they are still limping along trying to get basic tasks done with yet another platform that doesn’t come close to delivering on its promise while doing nothing to deliver an increased return on the large amount of money spent on SaaS supposed to solve the organization’s Procurement pain.

At worst, it points the buyer to a product that costs five times as much, doesn’t even accomplish core use cases (if the product works at all outside the demo lab), and results in an absolute disaster upon implementation (with next to zero adoption and more bypass than the organization has ever seen due to the lack of core capability) that results in the organization having to issue another RFP and go through the whole process again with a jaded and angry employee base who expects nothing good will come of it.

The danger of a poor Procurement product pick cannot be understated or underestimated. Nothing will cripple an overworked and under-resourced Procurement department faster than a bad platform (and doubly so if it contains [Autonomous] Gen-AI)!

So, with so many bad product comparisons and maps out there (including Gartner’s and Forrester’s), which I have tackled repeatedly on Sourcing Innovation, why the need to target this one? Because while Gartner and Forrester can be relied on to give you the generally best bet from among their customers which have been confirmed to have relatively equal core functionality,

  1. a random comparison between two different players based on a mere 15 data points that are randomly selected and called “use cases” only guarantees they both exist in the Source-to-Pay space,
  2. any use of AI is flawed from the get-go,
  3. and any comparison that scores Zip 94% and Jaggaer 100% is obviously a complete and utter crock of AI generated sh!t

Let’s revisit Joel’s comment where he calls out Solution Map (which Hackett will hopefully keep).

  • Over 500 clearly defined functions are scored on a scale of technical progression (from 0 to 5). Not 50. And definitely not 15!
  • A 100% based on TODAY’S known Best-In-Class functionality would require a Solution Map score of 4.0. Most suites averaged in the 2.5 to 3 range (average to slightly above). Jaggaer is no exception (and Zip is still far from a suite, it’s I2O slowly adding baseline procurement capabilities, not S2P). (Remember, I DESIGNED the core Sourcing, Supplier Management, Analytics, and Contract Management [this one joint with Pierre Mitchell] maps and DESIGNED the common core across all the maps for Solution Map 2.0. And I scored them for 7 years.)
  • They DO NOT cover everything … there’s always innovation, and always edge cases we ignored (as the goal was to produce a useful map for the majority).
  • They were TECH and CUSTOMER SATISFACTION only. And you need to assess more than that to select a vendor (as per our Successful Vendor Selection series). (And, sometimes, you have to figure out what you should even be looking at, which is why I penned a 39 part series to walk you though the thought process (and Joel, stop complaining about having to write an 8,500 word series on P2P functional requirements … you’re just getting started).
  • And they compared apples-to-apples. This report compares apple-to-oranges, as it’s conclusions are “choose JAGGAER ONE if your organization manages direct materials, manufactures products, or operates in a heavily regulated sector” or “choose ZipHQ if your procurement team needs to configure complex approval workflows across IT, Legal, and Finance without technical resources“, which effectively boils down to “choose Jaggaer if you need Source-to-Pay, and “choose Zip if you need Intake to Orchestration” which is a recommendation that DOES NOT require you to read a report to figure out. All you need to know is
    1. Jaggaer is Source to Pay.
    2. Zip is Intake to Orchestration

    and the answer becomes pretty f*ck!ng obvious!

In order to be useful, at a bare minimum, this is what a comparison needs to do. Define the product domain being compared. Identify the extent of core, should have, and nice-to-have functions required by a product to support the product domain (based on standard functionality and domain use cases). Create a maturity definition for each function. And then use HUMAN INTELLIGENCE to score each product selected for inclusion (on actual demos from the vendor or willing partners and/or current customers). Not bullsh!t Gen-AI that can be fooled by bullcr@p marketing!

Anything less is not a meaningful product comparison. It’s simply an exploration against a few points of interest.

Now, if that’s human led, that can be useful as supplementary material in a decision. After all, the Solution Map will merely grade functionality like flexible workflow configuration on a standard scale but won’t track specifics of how it’s done, how user friendly vs. partner friendly vs. vendor friendly the configuration is, actual customer use cases where the workflows had to intersect 3 or more departments and average customer sentiment on that feature, or provide any other color that might help you make a decision when two solutions look acceptable from a technical and customer satisfaction perspective.

So, if TEEM.finance or someone else wanted to hand pick the most common / relevant use cases, dive in, do a human review, and present their analysis as key points to consider — that would be awesome, and a great excuse to keep writing (so long as said writing is NOT turned over to [Gen-]AI)!

After all, I’m not going to do it (because, frankly, I’m not interested in seeing the same old functionality over and over [as I already saw, and wrote, about it all multiple times — and you should be able to access that if you have a Hackett Membership] as most of the suites have done little to upgrade anything in the last few years as they have switched private equity ownership and bled key talent), and neither are most analysts (who have to cover more vendors than most can handle — remember, there are over 700 vendors in our space, and if you don’t believe me, I again refer you to the mega-map of 666 vendors SI compiled for you).

But it has to be a real review, based on a real demo and/or real discussions with customers, and not AI in any way, shape or form. Otherwise, at best, it’s sl0p. At worst, it’s the written word equivalent of toxic waste. And let’s NOT forget that and continue to fight against the use of AI where AI should NOT be used!

Now, as to the other crock of sh!t, namely instant supplier sourcing & portfolio analysis, with AI. There’s no instant. Yes, there are some great tools out there that can identify a list of potentially relevant suppliers in seconds, compared to the weeks of manual searching you might have had to do in the past, and there are tools out there that can automate sourcing ONCE you have identified your precise item needs, your price tolerances, and your pre-vetted supply base … but, guess what, AI CAN NOT DO all the stuff in between, especially if the product (or category) is high-risk, high-complexity, or high-impact (under the Busch-Lamoureux Exact Purchasing Framework).*

You have to vet the supplier. You have to make sure it’s still operating, the license certificates, registrations, and insurance are both real and current, that the products are still offered, that they are real (by getting a sample), that they will suit your needs, and that the supplier is capable of producing the quantity you need in the time-frame you need it in. You then have to qualify the risks and impact, sign off on them, and enter the supplier (and approvals) in the system. Then you have to define the sourcing project, your tolerance, and your conditions for bid acceptance. YOU! Not BS AI!

In other words, there’s nothing instant about it … and for a highly complex product, or category, that could be days or weeks of manual human work even after all the tactical drudgery is automated for you. So, while a tagline that said faster supplier sourcing and portfolio analysis, with AI, would be 100% true, a tagline that says instant is inherently false. (Unless, of course, your risk tolerance is sky high and you don’t care if the worst case scenario hits and destroys your business … so if you’re looking to be the next Eddie Lampert and dismantle a 100+ Billion company [in today’s dollars] in record time, go for it!)

# name and image hidden as I’m not entirely sure it’s not a bot auto-publishing AI slop

* to be totally honest, you can’t even expect AI to be reliable for low-risk, low-complexity, and low-impact products/categories either, but since the impact of the mistakes it’s going to make will probably require less manual effort to clean up than dealing with all of those products manually, you can potentially live with it

AI CANNOT TELL YOU WHAT TO DO!

And I’m so glad I’m not the only one saying it!

The (Strategic Sourcing Decision Optimization [SSDO]) Grand Master himself Paul Martyn recently wrote a great post on LinkedIn that made this exceptionally clear and how the real problem is knowing what to do.

Paul starts off with three critical statements:

  1. AI can tell you what’s happening
  2. AI can’t tell you what to do
  3. In sourcing (procurement) the hard part isn’t visibility, it’s choice.

More specifically, it’s making a decision when every decision has tradeoffs, constraints, and (sometimes dire) consequences.

Unless you have an operating model to make those decisions, powered by technology that can actually help you adhere to the constraints, make the tradeoffs, and understand the consequences, the best case with AI is you get overwhelmed with the complexity of what’s happening.

So if you want to be buried in data and complexity and pretend you know what you are doing, there are dozens of BS AI players ready to help you.

But if you want the ability to make good decision, understand tradeoffs, restrict your inquiries to scenarios that adhere to constraints, and model the potential consequences when things go wrong, you need decision optimization with multi-objective capability. That’s Coupa (Trade Extensions). Or Jaggaer (Bravo Solution). Or Keelvar (just Keelvar). Not some BS AI startup offering nothing more than a clod or chat, j’ai pรฉtรฉ LLM wrapper.

And if you want to know how to build the right operating model backed up by the right multi-objective optimization model(s) (and save millions while reducing risk and increasing quality), you contact Paul Martyn. He’s saved Billions. (Whereas in 94% of companies, AI has effectively saved 0.)

Now for those who don’t know, not only am I one of the last original (independent) analysts standing in our space (20 years doing SI next month), but I am likely the last original strategic sourcing decision optimization model builder left standing too. (Mindflow [acquired by Emptoris], 2000. First multi-line item model. Before CombineNet [acquired by SciQuest, renamed Jaggaer]. Before Emptoris [acquired by IBM and sunset]. Before all of them. Twelve years before Keelvar. First model to do more: Trade Extensions, acquired by Coupa.)

So unless Thomas Sandholm or Arne Andersson want to come out of retirement and recommend someone better — it’s Paul Martyn. No one still active in our space goes as far back or has worked with as many platforms as he has. (And I helped a PM/Consultant who worked at 2 different optimization providers get hired at 3 others over the past 20 years, and even that doesn’t match Paul’s resume!)