The role of GenAI is no longer just a buzzword but a transformative force that reshapes how businesses approach decision-making and deliver value to customers. Heta Pirttijärvi, VP of Product at Sievo, provides key insights into how GenAI can drive significant advancements in procurement analytics, helping organizations achieve superior results through smarter, automated decision-making.
The shift from dashboards to action: The ROI of GenAI
At Sievo, the focus has long been on procurement analytics, helping companies understand what they’re buying, creating dashboards to visualize data, and delivering insights. However, Heta emphasizes that these dashboards, while valuable, are not what truly drive value. The ROI comes from the actions that follow the data. “It’s not about the dashboard. It’s the decisions that come from those insights that create value,” Heta says.
For years, Sievo has built its reputation by enabling customers to access data-driven insights. However, with the advent of GenAI, the narrative around ROI has shifted. “Now, the story is far more convincing because of AI,” Heta adds. Automated decision-making, powered by GenAI, is becoming a cornerstone of Sievo’s offerings, transforming how companies act on procurement data.
The limitations and advantages of automated decision-making
Automated decision-making, even if it reduces decision quality in some cases, presents unparalleled benefits in terms of scale and efficiency. As Heta explains, “A human can make one decision per day and feel good about it, but AI can make a million decisions. The cost of one decision is high when done manually, but with GenAI, it’s a fraction of that.” AI’s ability to operate consistently and make rapid, high-volume decisions has immense potential, allowing teams to focus on more strategic, high-value activities.
Heta points out, “While AI might make a mistake a tenth of the time, that’s still far superior to what humans can achieve in terms of decision volume and speed.” The capacity for AI to run 24/7 without fatigue or downtime further strengthens its case for automation in procurement analytics.
Using GenAI to enhance lead generation and opportunities
One of the key areas where GenAI has made a significant impact for Sievo is in lead generation and opportunity identification. Heta notes, “GenAI doesn’t just get demo requests on its own, but when leveraged correctly, it amplifies lead generation efforts.” Sievo’s approach focuses not just on generating AI-driven leads but ensuring those leads are tied to actionable, high-impact opportunities.
“Creating summaries of data, identifying supplier risks, and even automating emails to suppliers for price reductions, these are the real game-changers,” Heta explains. By implementing GenAI, Sievo can provide customers with faster insights into where to act, improving efficiency and reducing manual effort significantly.
Choosing the right GenAI mechanism: Build, buy, integrate
Heta highlights three distinct ways Sievo has approached GenAI implementation: Build, buy, and tntegrate.
- Buy: Purchasing GenAI solutions from external providers.
- Integrate: Using pre-trained AI models and integrating them directly into Sievo’s existing products.
- Develop: Creating custom AI solutions internally.
Heta’s team evaluated these options critically, realizing that building custom solutions often comes at a high cost. In some cases, “developing our own chatbot would have taken months and cost exorbitantly, far more than integrating a ready-to-use solution from OpenAI,” Heta explains. Instead, Sievo prioritized the integration approach, focusing on ready-trained LLMs to automate decision-making faster.
The case for a hybrid approach
Heta elaborates on Sievo’s hybrid approach: “We began with ready-trained LLMs that provided quick wins, but then we realized certain industries and use cases demanded customized AI models.” This combination of leveraging external solutions for scalable, fast outcomes and developing tailored models for industry-specific needs proved more efficient. The result? A 3X improvement in speed and efficiency compared to traditional methods.
Rethinking pricing in the era of GenAI
The adoption of GenAI has also forced Sievo to rethink its pricing strategy. Heta explains, “Human labor versus the value of AI-powered solutions—this has drastically changed how we price our services.” In scenarios where automation drastically reduces the time and effort required for tasks, Sievo had to adjust their pricing structure accordingly. “We’re not charging for AI-driven decisions as we would for traditional labor-heavy processes. We need to reflect the cost-efficiency gains AI brings.”
Three key learnings from Heta Pirttijärvi
- Leverage GenAI in marketing, but ensure there’s real, tangible value to offer: “GenAI in marketing can drive leads, but without something valuable to talk about, it’s just noise,” Heta advises.
- Think beyond customer feedback on AI solutions: “Customers don’t always know what they need. It’s our job to envision solutions that provide real value and create competitive advantage,” Heta says.
- Focus on what to build, buy, or integrate: “Evaluate your core competencies and understand where your competitive advantage lies,” Heta stresses. “Don’t waste time building when a better solution already exists.”
Conclusion
For Sievo, GenAI has become not just a tool but a fundamental driver of business transformation. Heta Pirttijärvi’s insights highlight how embracing GenAI, through the right mechanisms, be it integration, buying solutions, or internal development can unlock new levels of efficiency, decision-making power, and competitive advantage in procurement analytics. “It’s not about the AI itself, but how we use it to enable better, faster decisions that matter most,” Heta concludes.
