NZ’s supply chains are highly exposed. Could new AI agents make them more resilient?
AI agents are starting to transform procurement overseas. For isolated, trade-dependent New Zealand, they could offer a powerful tool against disruption.
New Zealand's supply chains are highly vulnerable to disruptions, as evidenced by recent events like the Iran Strait closure and the Ever Given incident. The country's economy relies on exports worth around $80 billion, making its supply chains crucial for success. However, procurement, the function that manages these exposure risks, remains under-resourced and largely unaffected by AI technology.
Despite this, agentic AI systems, capable of performing entire multi-step tasks with human supervision, are now available for procurement. These AI agents can detect issues, find and vet suppliers, prepare and assess tenders, analyze contracts, track performance, and scan for risks more quickly than manual methods. New Zealand firms face challenges such as fragmented data, outdated software, and trust in autonomous decision-making.
While 46% of in-house builders rate their AI capability as fully sufficient, only 7% of co-developers and 6% of outsourcers feel the same. To build the necessary expertise, procurement leaders should work with IT and foster a collaborative approach. The technology is ready, and international organizations are gaining valuable experience.
As New Zealand's prosperity depends on global trade, investing in procurement agents is crucial for national economic resilience.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
