Back in late 2018 and early 2019, before the GENizah Artificial Idiocy craze began, the doctor did a sequence of AI Series (totalling 22 articles) on Spend Matters on AI in X Today, Tomorrow, and The Day After Tomorrow for Procurement, Sourcing, Sourcing Optimization, Supplier Discovery, and Supplier Management. All of which was implemented, about to be implemented, capable of being implemented, and most definitely not doable with, Gen-AI.

To make it abundantly clear that you don’t need Gen-AI for any advanced enterprise back-office (fin)tech, and that, in fact, you should never even consider it for advanced tech in these categories (because it cannot reason, cannot guarantee consistency, and confidence on the quality of its outputs can’t even be measured), we’re going to talk about all the advanced features enabled by Assisted and Augmented Intelligence that were (about to be) in development five years ago and are now available in leading best of-breed systems. And we’re continuing with Supplier Discovery.

Unlike prior series, we’re identifying the sound, ML/AI technologies that are, or can, be used to implement the advanced capabilities that are currently found, or will soon be found, in Source to Pay technologies that are truly AI-enhanced. (Which, FYI, may not match one-to-one with what the doctor chronicled five years ago because, like time, tech marches on.)

Today we continue with AI-Enhanced Supplier Discovery that was in development “yesterday” when we wrote our first series five years ago but is now available in mature best of breed platforms for your Supplier Discovery success. (This article sort of corresponds with AI in Supplier Discovery Tomorrow that was published in March, 2019 on Spend Matters.)

TODAY

Deep Capability Match

As noted in our original posting, if you want a custom produced FPGA, an industrial strength power converter that can handle feeds from your wind farms and water wheels, or a new state-of-the-art surround sound system, you don’t want just any supplier. This is especially true if all they do is produce a fixed set of products, use production technology that is not appropriate for the design you want, have a record of sourcing inferior raw materials, or don’t have the right quality processes in place.

So, when we last tackled this subject five years ago, the new/leading supplier discovery platforms were working on deep capability match that could take a set of requirements for a product, or even a bill of materials, and find matching suppliers for the parts.

Especially since all this needed was deep capability identification and tagging across categories, products, and services that included production process, certifications, materials, etc. Which means that deep capability match was essentially just a super smart search capability across not just a few, but dozens of requirements — as long as the data was properly structured and indexed.

This requires the ability to crawl websites and extract all text and documents, OCR those documents to text, and then semantically process for the relevant information along the recorded dimensions. This just required classical semantic processing which uses ontologies, semantic networks, and custom trained (neural) networks for POS/concept identification when classical processing is not sure. Tech that has now been around and ready for production use for over 15 years. The big challenge was the magnitude of data that needed to be processed and indexed, which is not a problem anymore given the processing power of racks, the size of modern data centres (which require 10X to 100X the processing power for the Gen-AI trainwrecks that don’t deliver), and modern distributed processing algorithms and technology.

And, of course the ability to do rapid semantically aware reg-ex (across similar key words / phrases) for anything not indexed, or indexable in a standard taxonomy.

Resource Capability Match

Sometimes you need very specialized services. As we noted five years ago, for new product design, you need an engineering resource who has designed similar products and is familiar with the new production technologies and components that are on the market. For software implementation, you need a team who has installed the current software in a similar environment that has the same ERPs, OSs, data sources, etc. For utility installation, you need engineers with the right skills and certifications. And so on.

This is essentially just a variant of deep capability match, except you are matching on the services capabilities and the individual’s resumes. Getting here was just determining everything that was relevant for a service, processing large amounts of data, tagging and indexing it appropriately, and supporting very deep multi-faceted searches, using the same semantic technology as described above, but tuned for different service (instead of product) domains.

That’s All For Now, Folks!

Again, focus on supplier discovery was, and still is, limited as there were, and still are, only a few vendors doing it. The good news is that we’re starting to see the technology predicted for “tomorrow” five years ago starting to emerge in these platforms as well.

SUMMARY

Now, we realize some of these descriptions, like yesterday’s, are also quite brief, but again, that’s because this is not entirely new tech, as the beginnings have been around for a few years, have been in development and discussed as “the future of” Supplier Discovery tech before Gen-AI hit the scene, and all of these capabilities are pretty straight-forward to understand. And, if you want to dive deeper, the baseline requirements for most of these capabilities were described in depth in the doctor‘s March 2019 articles on Spend Matters. The primary purpose of this article, as with the last, was to explain how more sophisticated versions of traditional ML and AI methodologies could be implemented in unison with human intelligence (HI!) to create smarter Supplier Discovery applications that buyers could rely on with confidence.