The Procurement Glossary » Machine Learning

Machine Learning

Technology & Systems

Also known as: ML

Definition

A branch of AI in which systems learn patterns from data to make predictions or classifications without explicit rules.

Explanation

In procurement, machine-learning models power spend classification, demand forecasting, price prediction and anomaly detection for fraud. Model quality depends on clean, representative data, and predictions carry uncertainty that users should understand.

Example

A machine-learning model learns from past orders to predict which requisitions are likely to be delivered late.

Related terms

• Artificial Intelligence in Procurement — The application of AI techniques to procurement tasks such as classification, forecasting, risk detection and negotiation support.
• Predictive Analytics — The use of historical data and statistical models to forecast future outcomes.
• Data Quality — The accuracy, completeness and consistency of the data underpinning procurement analysis and decisions.
• Demand Forecasting — Predicting future demand for goods to guide purchasing, inventory and production planning.

Frequently Asked Questions

What is Machine Learning?

A branch of AI in which systems learn patterns from data to make predictions or classifications without explicit rules. In procurement, machine-learning models power spend classification, demand forecasting, price prediction and anomaly detection for fraud. Model quality depends on clean, representative data, and predictions carry uncertainty that users should understand.

Can you give an example of Machine Learning?

A machine-learning model learns from past orders to predict which requisitions are likely to be delivered late.

Back to the procurement glossary | Procurement concepts | Contact us