Compliance and procurement leaders see the value in using artificial intelligence, but far too many aren’t confident they have the right skills in place to use it. This indicates training and hiring the right talent will be key to any compliance or procurement organization looking to implement AI, according to a new report from Dun & Bradstreet.
According to Dun & Bradstreet’s “Sentiment Report,” 53 percent of 630 compliance and procurement professionals surveyed said they “strongly agree” or “somewhat agree” AI will improve efficiencies and enhance insight within the compliance and procurement function. Yet, nearly the same proportion (45 percent) admitted to being unsure they had the appropriate skills in place to utilize AI in the next year.
The top anticipated areas expected to benefit from AI, according to respondents, include risk and fraud detection; data gathering and validation; risk screening; and account reconciliation.
The survey also found that “the top anticipated area expected to benefit from AI differs by industry. Financial services and retail most anticipate improved risk and fraud detection with 60% and 55% selecting this as their top area respectively,” the survey said. “However, 56 percent of government agencies, and 47 percent manufacturing, believe that data gathering and validation will benefit the most from artificial intelligence.”
Simply put, technology like AI can accelerate the onboarding and due diligence process while reducing costs. Although 37 percent of respondents expressed concern over the future impact of AI, the pressures of a data-driven, global business world dictate that implementing AI is becoming increasingly critical.
The survey also showed many are slow to respond to increased cyber-security risks. Although cyber-security was the No. 1 concern for respondents, 48 percent had not yet implemented a cyber-risk approach towards third parties. Half of this group of respondents had developed an approach to cyber risk but have been slow to implement. These respondents were evenly divided into two categories: 24 percent had not agreed on or implemented an approach, while the other 24 percent had an agreed upon approach but not yet implemented it, according to the study.
“Third-party risk management and compliance programs can’t remain stagnant,” said Brian Alster, general manager of third-party risk and compliance at Dun & Bradstreet. “As technology changes and the amount of data companies are expected to manage when mitigating risk increases, procurement and compliance professionals need to drive greater efficiencies within their programs.”