C-Suite Perspectives On AI: Jesse Alterman On Where to Use AI and Where to Rely Only on Humans
An Interview With Kieran Powell
Essential Vendor Relationships by Human Interaction:
While it can manage vendor information, AI falls short in fostering the personal relationships and negotiations vital in supply chain management in China. Resolving disruptions often requires effective communication, empathy, and conflict resolution, which humans are more adept at than robots. Professionals with local cultural understanding can tailor their communication strategies to achieve mutually beneficial outcomes for businesses and their vendors.
As artificial intelligence (AI) continues to advance and integrate into various aspects of business, decision-makers at the highest levels face the complex task of determining where AI can be most effectively utilized and where the human touch remains irreplaceable. This series seeks to explore the nuanced decisions made by C-Suite executives regarding the implementation of AI in their operations. As part of this series, we had the pleasure of interviewing Jesse Alterman at CPG.
Jesse is the head of Operations and Insights at CPG, a global sourcing company specializing in helping businesses source high-quality products from China. She joined CPG’s team in 2022 after receiving a master’s from Liberty University. She is responsible for creating and executing integrated marketing strategies aimed at enhancing CPG’s worldwide visibility, broadening its esteemed client base, and boosting revenue generation.
Thank you so much for your time! I know that you are a very busy person. Our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?
Sure! After getting my undergrad, I explored several different career paths before becoming a full-time stay-at-home mom. When I was ready to return to work, I started by teaching Chinese children English online while getting my master’s. It may sound like an odd path that landed me in the world of China sourcing services, but ironically, all my previous endeavors have proven to be beneficial in my current context. Even teaching children has helped me understand the cultural differences between our clients and their Chinese manufacturers.
It has been said that our mistakes can be our greatest teachers. Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?
Mistakes? What mistakes? Just kidding.
Part of my work involves marketing using video. I remember years ago creating a video that I was somewhat proud of. The angles were great, and the edits were great. However, the microphone was awful and I knew it. So to make up for this, I was extremely expressive with my voice to attempt to generate excitement. All I generated was a very loud woman yelling into a bad microphone in an echoey room…and the comments and reactions let me know that.
The lesson…don’t go cheap on a microphone. People will forgive bad visuals, but they won’t stand for bad audio.
Are you working on any exciting new projects now? How do you think that will help people?
Yes! We have a few exciting projects up our sleeves, but the one I’m most excited about is our book, which should be released this year. It combines 45 years of expertise in China sourcing services and will be extremely beneficial for anyone who sources from China or is thinking about buying directly from China. There’s currently nothing like it! We have many contributors from both the United States and our Beijing office who will be explaining all the best practices, from using an agent to opening a sourcing office.
Thank you for that. Let’s now shift to the central focus of our discussion. In your experience, what have been the most challenging aspects of integrating AI into your business operations, and how have you balanced these with the need to preserve human-centric roles?
As with any new piece of technology, the challenge is in learning and implementation. People are resistant to change. This is especially true for specialists who have been doing their jobs in the same fashion with great results for years. Their methods are not broken, so why try to fix them? Presenting AI as a tool, similar to presenting them with a faster computer or modem, has helped to balance its integration while preserving our human-centric roles. In the realm of China supply chain management, Enterprise Resource Planning (ERP) software has become common to streamline the intricate processes of competitiveness, cost reduction, and timely delivery. However, there’s still a lot to consider when using ERP, especially in international contexts.
Can you share a specific instance where AI initially seemed like the optimal solution but ultimately proved less effective than human intervention? What did this experience teach you about the limitations of AI in your field?
Many of our marketing initiatives leverage AI to generate scripts, emails, campaigns, and more. While these tools initially seemed like the optimal solution, getting them to craft relevant scrips ultimately became more time-consuming than doing them manually. These tools have proven invaluable in overcoming writer’s block and sparking fresh ideas. However, human oversight remains essential to tailor the message according to our brand’s distinct identity and values.
How do you navigate the ethical implications of implementing AI in your company, especially concerning potential job displacement and ensuring ethical AI usage?
Here at CPG, we have not displaced any of our employees with AI. Rather, AI has acted as a tool to help our employees in tracking, research, sales, efficiency, and more! While AI continues to improve, so do people and their skill sets. Because our company is growing, if a task is replaced by AI, the person doing that task is now free to be more relational and people-focused, which is at the heart of what we do.
Could you describe a successful instance in your company where AI and human skills were synergistically combined to achieve a result that neither could have accomplished alone?
When researching suppliers, clients often have dozens or hundreds of options. AI tools can analyze supplier performance metrics, such as on-time delivery rates, quality control data, and pricing trends, to assess supplier reliability and identify opportunities for improvement. However, it’s the sourcing experts in our Beijing office that leverage this data to negotiate contracts, establish service-level agreements, and cultivate strategic partnerships with Chinese manufacturers. Their interpersonal skills, negotiation expertise, and industry knowledge enable them to build trust, resolve disputes, and collaborate with suppliers and clients to drive mutual success.
Based on your experience and success, what are the “5 Things To Keep in Mind When Deciding Where to Use AI and Where to Rely Only on Humans, and Why?” How have these 5 things impacted your work or your career?
1 . Nuanced Decision-making:
While AI excels in processing data with accuracy and speed, it cannot make delicate decisions based on complex contextual factors. Supply chain management in China often involves complicated networks of suppliers, manufacturers, distributors, and logistics providers operating in diverse geographic regions with unique cultural, regulatory, and infrastructural considerations. When buying direct from China, local sourcing agents with expertise and established relationships can navigate these complexities more effectively than AI software and programs. They understand the nuances of local markets, regulations, and customs, enabling them to anticipate potential challenges and develop tailored strategies to mitigate risks.
2 . Unexpected Events:
AI systems rely on historical data and predefined rules, often proving inadequate in handling unforeseen disruptions, particularly in international trade. Natural disasters, geopolitical tensions, or even sudden shifts in demand can significantly disrupt operations. Experienced supply chain managers possess the ability to think creatively and adapt quickly to rapidly changing circumstances. They can draw on their experience, intuition, and contextual understanding to devise innovative solutions on the fly.
3 . Essential Vendor Relationships by Human Interaction:
While it can manage vendor information, AI falls short in fostering the personal relationships and negotiations vital in supply chain management in China. Resolving disruptions often requires effective communication, empathy, and conflict resolution, which humans are more adept at than robots. Professionals with local cultural understanding can tailor their communication strategies to achieve mutually beneficial outcomes for businesses and their vendors.
4 . Ethical and Moral Considerations:
Supply chain decisions may involve ethical dilemmas, such as labor practices, environmental sustainability, and social responsibility. Humans possess moral reasoning capabilities and ethical judgment, enabling them to weigh competing interests and make decisions aligned with organizational values and stakeholder expectations. AI, lacking consciousness and moral agency, cannot fully comprehend or navigate these complex ethical considerations in the same way. Consumers are increasingly conscious of the ethical and social implications of the products they purchase. Companies that prioritize ethical practices, especially when purchasing in China, enhance their reputation, while the opposite effect can prove to be catastrophic.
5 . Combining Both:
AI provides a wealth of data, but it’s the responsibility of human experts to interpret this information, considering local, global, and future factors. In the realm of China sourcing, integrating ERP with human expertise enables companies to make expedited data-driven decisions.
While AI can streamline existing processes, it’s people that drive innovation and continuous improvement. China sourcing agents with local knowledge can identify areas for optimization, implement changes, and adapt supply chain strategies to evolving business goals. For businesses, the optimal approach lies in recognizing that AI and human resources are not mutually exclusive but rather complementary components of a successful strategy. By leveraging the strengths of both, companies can navigate the complexities of modern supply chains, respond to unforeseen international challenges, and maintain a competitive edge in today’s dynamic global business environment.
Looking towards the future, in which areas of your business do you foresee AI making the most significant impact, and conversely, in which areas do you believe a human touch will remain indispensable?
In the sourcing industry, I see AI making the most significant impact in vetting suppliers, inventory management, and quality control. However, building relationships with suppliers, contract negotiation, dispute resolution, and ethical decision-making will remain human interventions. I cannot imagine too many businesses that buy direct from China will trust AI to negotiate a contract or resolve a dispute.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
Great question! Let me ask ChatGPT what it thinks…
Just kidding.
While we all tend to think globally in this day and age of technology, I tend to believe that the smaller acts of kindness and compassion do the most amount of good to the most amount of people. Calling up someone just to see how they are, sending flowers to someone who just lost a loved one, making a meal for a neighbor who just had surgery, babysitting the kids of a mother who just had another baby, or even offering a kind word or compliment to a stranger goes such a long way. We live in such a busy world that we often forget these small things that mean so much.
How can our readers further follow your work online?
You can always connect with me on LinkedIn! https://www.linkedin.com/in/jesse-alterman/
Or find more of my work on our blog at https://cpgsourcing.com/resources/blog/
This was very inspiring. Thank you so much for joining us!
About The Interviewer: Kieran Powell is the EVP of Channel V Media a New York City Public Relations agency with a global network of agency partners in over 30 countries. Kieran has advised more than 150 companies in the Technology, B2B, Retail and Financial sectors. Prior to taking over business operations at Channel V Media, Kieran held roles at Merrill Lynch, PwC and Ernst & Young. Get in touch with Kieran to discuss how marketing and public relations can be leveraged to achieve concrete business goals.
