Is AI good or bad for public sector procurement?

Posted on June 26, 2024

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With the vast amounts of external data that AI has access to, it can provide more information in real-time, which procurement teams can use to facilitate and improve their decision-making and bid writing.” – Arthur Cox LLP (April 24, 2024)

In the context of the above text, what if AI recommendations to improve decision-making and bid writing in the public sector contradict policy and legislation?

In the public sector, procurement is regulated by public procurement laws, which are designed to ensure that public funds are spent in a fair and equitable manner. In the private sector, procurement is largely unregulated, and organizations are free to pursue their own procurement strategies.” – GEP (December 27, 2022)

Is AI making the right recommendation a force for policy and legislative change? What is the point of investing in AI if you ignore its advice? Yes, I sometimes don’t follow Google Maps’ directions, but I now usually do because they turn out to be right.

Maybe the bigger question is whether current public sector policies, practices, and legislation undermine procurement’s effectiveness?

“The National Audit Office’s Report on its ‘Investigation into government procurement during the COVID-19 pandemic’ found that the relaxation of the standard procurement rules to allow for extremely urgent acquisitions, mainly of PPE, resulted in alarmingly widespread levels of procedural impropriety in the award of up …” – LSE Blogs (November 24, 2020)

Conversely, how could AI have prevented the above PPE scandal in the UK?

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Posted in: Commentary