Oklahoma is revamping its state procurement process with a new AI platform

Oklahoma is transforming its state procurement system through AI-powered process intelligence, leading to significant cost savings and improved oversight across more than 100 state agencies.

Initial implementation and impact: The Oklahoma Office of Management and Enterprise Services (OMES) deployed Celonis’ process intelligence platform in 2023, integrating AI into its procurement processes to streamline operations.

• The system creates a digital twin of financial and procurement data from PeopleSoft, providing real-time insights into financial processes
• Since launch, the platform has identified $6.8 billion in purchasing inefficiencies
• The implementation addresses findings from a legislative report that revealed $3 billion in state purchases previously lacked proper oversight

Technological transformation: The AI-powered platform has dramatically improved the state’s ability to conduct procurement audits and maintain oversight.

• Prior to implementation, the state could only complete eight audits annually, often reviewing purchases 2-3 years after the fact
• The new system enabled OMES to review all state procurement within 60 days of launch
• Auto-generated alerts now highlight errors in real-time, allowing buyers to make immediate corrections

Cost savings and efficiency gains: The platform’s comprehensive analysis has revealed significant opportunities for cost reduction and process improvement.

• The system identified instances where agencies were purchasing directly from vendors at 45% below statewide contract prices
• This discovery led to mandatory renegotiation of statewide contracts to secure better pricing
• The platform consolidates procurement data into a “single pane of glass,” enabling better economies of scale

Implementation challenges: Change management emerged as the primary hurdle in rolling out the new system.

• Educating state buyers about the tool and its utilization proved challenging
• The integration of automation and AI-driven data helped ease the transition
• State employees have responded positively, particularly appreciating clarification of procurement laws

Expanding applications: Oklahoma is extending the use of Celonis beyond procurement into other state operations.

• The platform is being implemented in Workday, the state’s human resources platform
• OMES’ service delivery ticketing system is now utilizing the technology
• The system’s “agnostic” nature makes it potentially valuable for other states and federal agencies

Future implications: While Oklahoma’s AI-driven procurement transformation shows promising results, the broader impact on government operations and taxpayer value remains to be fully realized.

• The success in procurement could serve as a model for other state agencies and departments
• The platform’s ability to identify inefficiencies and drive compliance may lead to standardization across government operations
• Questions remain about long-term maintenance costs and the need for continuous system updates to maintain effectiveness