India-Russia should partner in developing AI-based applications for use in procurement expert

Moscow, Jun 1 (PTI) India and Russia should partner in setting up joint centres of excellence for developing Artificial Intelligence (AI) based applications which can be used in procurement, an expert said.
     Arvind Dixit, former scientist at the Defence Research and Development Organisation (DRDO) and former defence attache to Russia, who was invited to deliver a keynote address on the transformative power of artificial intelligence (AI) in procurement and the emerging opportunities for Indo-Russian collaboration, told PTI that AI was redefining procurement as a strategic and data-driven function.
     “India's projected over INR 20,000 crore cost savings potential from AI-integrated procurement by 2025,” he said at the special session titled “AI in Procurement: Transforming India’s Strategic Capabilities”.
     The session last week drew senior policymakers, industry leaders, and technology experts to a remote resort in the Altai Mountains, over 3,000 kilometres east of Moscow.
     Real-world benefits achieved across sectors, including cost reductions of up to 18 per cent, lead time improvements of 30 per cent, and significant returns on investment within 18 months, are achieved through the use of AI applications for demand forecasting, risk management, and contract optimisation, Dixit said.
     He underscored the growing opportunities for bilateral cooperation between India and Russia, particularly in the co-development of AI-enabled procurement and logistics systems.
     The two countries can set up joint centres of excellence for defence and industrial procurement innovation, knowledge exchange on regulatory frameworks, ethical AI, and dual-use technologies, he said.
     “India and Russia, with their rich history of strategic and technological cooperation, must now partner in the AI era. Procurement is the next frontier,” Dixit said.
     The session addressed by him reinforced India’s strategic positioning as a global hub for intelligent, secure, and collaborative procurement ecosystems.
     According to Dixit, procurement means using intelligent systems to streamline and optimise the entire procurement process and involves analysing vast amounts of purchasing data, identifying cost-saving opportunities, and automating routine tasks to improve efficiency and decision-making.
     It helps organisations predict demand, manage supplier risks, negotiate better contracts, and ensure compliance, he said.
     Dixit gave the example of Hindustan Aeronautics Ltd, which, with the help of an AI-based procurement process, prevented emergency procurement costs for imported parts, saving around USD 3 million annually.

(This story has not been edited by THE WEEK and is auto-generated from PTI)