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CATCHING UP ON WHAT AI CAN DO FOR PUBLIC PROCUREMENT PROFESSIONALS?

Professor Albert Sanchez Graells
Professor of Economic Law, University of Bristol Law School 


17.10.24



If you work on public procurement and your inbox looks anything like mine after
the summer, you probably have more than a few emails pitching what AI can do for
you, offering AI-based ‘hacks’ for procurement professionals, or reporting on
new developments in AI and digital regulation that can be of relevance in the
context of procurement. You may have also seen recent think tank reports, such
as this one, on how to reimagine procurement for the AI era. And there is an
emerging field of AI procurement-based humour, if that is your cup of tea.

Chances are that, even if your organisation is not considering using AI to
manage procurement, it is likely to be exploring how AI can be used in its
frontline activities. Sooner or later, if they haven’t already, most public
buyers will be asked to explore ways in which to safely procure AI-based
solutions, or will be offered such solutions within the tenders they receive, as
providers are also quickly exploring ways to embed AI as part of their delivery
processes.

In short, AI has become a focus of attention for procurement professionals and
researchers.

However, as I discovered while carrying out research for my book on digital
technologies and public procurement, it can be hard to find good resources to
cut through the hype and understand what AI is, how it works (or doesn’t), and
what implications and risks it carries. There is also little discussion of the
(boring, expensive) preparatory work required to successfully deploy AI, and on
the safeguards that need to be put in place.

The truth is, however, that ‘adopting AI’ cannot be done overnight and that
organisations that rely on fully outsourced ‘AI as a service’ solutions, or that
inadvertently embed elements of AI—for example, through cloud-based services
they already have in place—are opening themselves up to cyber and commercial
risks that are not always well understood or properly addressed. There have been
some high-profile embarrassing cases of AI going rogue, such as in Air Canada’s
chatbot fiasco, and it is becoming increasingly clear that ‘rushing to AI’ has
both operational and reputational risks. AI-related decisions thus require
careful consideration.

In the public sector context, procurement officials will be at the forefront of
such decisions.

The question is how well equipped we (as a profession) are to make those calls,
and how to improve our ability to do so. Although there are some sources of
guidance—for example, in the UK the Guidelines for AI Procurement, the Guide to
Using AI in the Public Sector, or the more recent Introduction to AI
Assurance—they are not necessarily ‘plug and play’ and procurement professionals
are expected to be able to exercise judgment in relation to increasingly complex
issues surrounding AI development and deployment.

This will not change under the new legislation that is quickly being put in
place to create a system that promotes trustworthy AI. Although the EU AI Act
was adopted in July, it will not fully enter into force for another two years
and, even then, its operationalisation through procurement documents and
contractual clauses will require some careful thinking.

The successful deployment of AI across the public sector, and within public
procurement, will thus crucially depend on the understanding and digital skills
of procurement professionals. In my view, it will not be enough for some
‘digital specialists’ to be brought into procurement teams. All procurement
professionals will need to have a good understanding of key issues. So this is a
good time to start developing or increasing your level of digital understanding.


THIS IS WHY I AM VERY MUCH LOOKING FORWARD TO ADDRESSING SOME OF THESE ISSUES AT
THIS YEAR’S EBP NATIONAL TENDER DAY IN BRUSSELS ON 17 OCTOBER.

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