They’re Coming for You:

Acquisition Professionals vs Technology

Breakout Session #: A16

Presented by: Tracy Marcinowski & Iris Cooper

Date: July 23, 2018

Time: 11:15am-12:30pm

• Use Proper Terminology

• Artificial Intelligence(AI), Machine Learning (ML) and

Robotics Process Automation (RPA), OCR

• These items are not the same but rather ML, RPA, and OCR

are subsets of what is typically called AI

• This is not new it is the next evolution of how we do

business

• ML has been around since the 50’s when a scientist taught

a computer to play checkers by feeding it data

What Are We Discussing

Understanding the Landscape

• Artificial Intelligence (AI)

• No consensus definition universally accepted

• Some define AI loosely as a computerized system that

exhibits behavior that is commonly thought of as

requiring intelligence, or…..

• A system capable of rationally solving complex problems

or taking appropriate actions to achieve its goals in

whatever real-world circumstances it encounters

• Robotics Process Automation (RPA)

• RPA is the use of software with AI and machine learning

capabilities to handle high-volume, repeatable tasks that

previously required a human to perform

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Understanding the Landscape

• Cognitive Automation

• Combining RPA with intelligence

• Machine Learning (ML)

• Use of a computerized tool that carries out repetitive,

typically clerical tasks involving a transfer of

information between applications

• It is a type of artificial intelligence (AI) that provides

systems with the ability to learn without being

explicitly programmed

• All ML is AI but not all AI is ML

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Understanding the Landscape

• Optical Character Recognition (OCR)

• OCR technology is a software that scans documents

containing texts and converts them into documents

that can be edited. However, for the scanning to take

place, the text should be clear and at times,

handwritten text may not be recognized by the

software.

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Uses of AI, ML & RPA

• AI Uses

• Speech recognition – i.e. voice command in your car to

dial contacts in your phone

• SIRI

• Driverless cars

• Machine Learning

• IBM Watson

• Google Deepthink

• Online Recommendations

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• RPA

• Claims processing

• Application processing

• Acquisition/contract clause logic

• Invoice verification & processing

• Cognitive Automation

• Chatbots in procurement can present options while

the backend, supporting paperwork is developed

automatically

• Spend analytics via chat assistance

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Uses of AI, ML & RPA

Real Time Failures

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Real Time Failures

• AI-Judged Beauty Contest

• The “first international beauty contest judged by AI” a

robot panel, judged faces based on algorithms “that can

accurately evaluate the criteria linked to perception of

human beauty and health”

• However, by failing to supply the AI with a diverse training

set, the contest winners were all white

• Pokémon GO keeps game-players in white

neighborhoods

• Failure of the creators of the algorithms to provide a

diverse training set

• AI-fueled video game “Elite”

• Had the ability to create superweapons beyond the scope

of the game’s design

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Ethics and AI

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Ethics and AI

• Often not considered in the development; however, can

have significant impact on individuals as AI decisions are

made in health care, judicial system etc.

• In a recent Wisconsin Supreme Court decision, a man was

sentenced to six years in prison based in part on

recommendations from Northpointe’s Compas software,

which uses proprietary algorithms to predict the

likelihood a defendant will commit more crimes

• However, it was later determined that Compas was “far

more likely to incorrectly judge black defendants at a

higher rate of recidivism than white defendants”

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Ethics and AI

• Biased algorithms are not just influencing the

judicial system…….think

• Google News – machine powered newsfeed will

actually provide information and engage with

like-minded people whose opinions you share

• Facebook – algorithm-driven content will show

content that affirms your beliefs so you will not

see alternative views

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Disruptive Technologies

• Technologies that are rapidly advancing or experiencing

breakthroughs

• Technologies that have broad reach and could be

economically disruptive

• Technology that could have significant economic value

• Some examples:

• 3D Printing

• As-A-Service Model

• Renewable energy

• Cloud technology

• Mobile internet

• Advanced Water purification

• Private space flight

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What Does This Mean For Us?

• Disruptive technologies, automation of processes, AI,

and ML will not only change the industry we partner

with, but it will change the way we procure goods and

services from them

• Evolving technologies will change

• Our jobs

• Our processes

• Our skill sets

• Our missions

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Impact of Disruptive Technologies

• Consumers could win big

• Next-gen genomics & advanced robotics could deliver

major health benefits

• The nature of work will change – new skills will be

required

• Repeated phenomenon since the Industrial Revolution

• Some technologies could replace entire job categories

• Benefits of technologies may not be evenly

distributed

• Disproportionate opportunities for highly skilled workers

while replacing others completely.

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• Discussion of the use of AI and RPA in the acquisition process,

causes many to jump to loss of jobs

• Disruptive doesn’t mean destructive

• Implementation requires careful planning

• Don’t forget to build a framework around the implementation

• Doesn’t always destroy a market, it can create a new one

It Doesn’t Have to be Disruptive

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• What happens to the people who once did this

job?

• Automation frees up the acquisition workforce

• While Robot uprising isn’t imminent it will free up the

acquisition to use a different set of skills

• What skills will tomorrow’s acquisition workforce

need?

• Developing training for a culture that is changed by

technology

Considering the Human Aspect

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Imagine a Contracting Organization

• Technologies that could replace/significantly

change:

• Supply chain logistics• Orders filled by computers monitoring inventory controls

• Performing simplified acquisitions via Web Portal

• Developing solicitations

• Performing evaluations (technical & price)

• Processing invoices

• Verification of routine admin tasks, i.e. reps & certs,

checking SAM

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Imagine a Contracting Organization

• The benefits of RPA solutions go beyond cost

reduction and include:

• Decreased cycle times and improved throughput

• Flexibility and scalability

• Improved accuracy

• Improved employee morale

• Detailed data capture

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Tips for Implementing AI

• Start with smaller steps

• Identify processes that could benefit from

automation

• Start with incremental process changes• Define the problem you’re trying to solve

• Remember that any of these changes impact people

• Consider cost of development vs cost of automation

• Always consider change management and

communications

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• Assess for automation opportunities

• What’s on the left (strategic) and what’s on the right

(repetitive)

• Build your business case

• Determine the optimal operating model

• Identify your automation partner(s)

• Plan the automation roadmap

Tips for implementing AI

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Tips for implementing AI

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Be a Visionary

• Understand what process (or parts of a process)

is being automated and the impact on human

operators in that process

• What skills will be required to succeed in an

automated environment in the future?

• What skills are no longer needed?

• While the Robot uprising isn’t imminent, process

automation will free up resources to re-deploy?

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Preparing for the future

• Executive commitment• Introducing AI and bot technology is more than a change – it is a

revolution with profound impact

• IT & business alignment• These functions are inter-related and must work together

• Manage Expectations & change

• Develop a clear roadmap for “quick wins”• Smaller applications are already being used in Government such as the

U.S. Citizenship & Immigration Service’s “Emma” – a virtual assistant

that directs website users to online services

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Preparing for the Future

• Develop measures of success

• There will be obstacles in implementation – don’t

overpromise

• Transparency is critical

• While there is a notion that bot technology will free

up people for jobs with a higher Return on

Investment (ROI), we need to be honest that some

jobs will go away – think Industrial Revolution,

technical revolutions, smart phones & appliances etc.

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Sources

• The Future has Begun – Using Artificial Intelligence to Transform

Government

• Partnership for Public Service & IBM Center for The Business of

Government

• How GSA turned an automation project into an acquisition time-

saver

• Jory Heckman

• Procurement beyond RPA – the cognitive future of procurement in

the age of Artificial Intelligence and Machine Learning

• Assistedge

• Disruptive technologies: Advances that will transform life, business

and the global economy

• McKinsey Global Institute

• The dangers of AI challenge

• Kyle Wiggers

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• Iris Cooper– Department of Treasury

– Iris.Cooper@treasury.gov

• Tracy Marcinowski– General Services Administration

– Tracy.marcinowski@gsa.gov

Contact Information