Procurement and Artificial Intelligence

Abstract

Governmental entities must often rely on private sector firms to develop and deploy artificial intelligence (AI) tools that can improve public sector performance. As a result, contracts with private firms can provide an important line of defense against improper or ill-executed public sector use of AI. This chapter investigates the connections between procurement and AI in the public sector, highlighting opportunities for using procurement to promote the responsible deployment of AI by governmental entities. To provide a conceptually complete account of the relationship between AI and procurement, the chapter begins by explaining how governments around the world are starting to rely on AI to fulfill procurement functions. The chapter then explains how, for any function, careful attention to procurement contracts can solve some of the transparency concerns surrounding governmental use of AI as well as help respond to concerns about fairness and accountability. In short, procurement can be an important source of AI governance.