Buying AI and AI in procurement

Why it matters

Technologies like GenAI and agentic AI have the potential to help public sector organizations increase efficiency through automation and strengthen decision-making, helping stretch tight human resources to better serve the public.

AI is entering government in different ways, through direct procurement of licenses or tools, but often, personal use and pilot projects provide entry through the side doors.

Good AI procurement looks like good technology procurement. But there are differences as AI is rapidly growing and changing.  AI carries a unique combination of risks, including data management & bias, establishing adequate safeguards & liabilities, questions of ownership, and environmental impacts.

Good procurement addresses this. We help build organizational readiness, ensure value-aligned technology and set up outcome-driven procurement. As a fast-changing new technology, where vendors are pushing their services, OCP provides technology-neutral advice and support.

We support governments in two ways:

  • We help governments leverage AI for better procurement. We build AI that makes procurement data more accessible, provide AI-powered analytics, and produce more and better data to track performance and spending – from comparing medicine prices to filtering business opportunities for SMEs.
  • We advise governments to buy AI responsibly, building on our BuyingAI guide and by providing bespoke training and technical assistance. We can support the development of procurement strategies that help you acquire modular agile AI-enabled technology, drafting RFPs, market engagement, evaluation, contract scoping or vendor management. We can also link you to governments who have learned what works and what doesn’t.

Our approach to AI

We believe in responsible AI. That means AI that is based around clear guidelines and values that is human-centered, participatory, and transparent. We believe in humans staying in the loop for decisions and clear reasoning and audit trails for AI system decisions.

We can help you with:

Making data more accessible

We make complex procurement data more accessible and understandable to communities. We have already supported federal and local governments, audit institutions and non-profits in using AI-powered analytics and data-matching to boost efficiency and accountability, for example on analyzing medicine unit prices in Brazil, or for local businesses to be able to find contracting opportunities that are right for them.

Improving data

We help governments to have more and better data or track performance and spending for critical services, such identifying green requirements in public procurement.

Buying AI systems

Governments have more leverage when negotiating with AI vendors than what they think. In practice, problematic provisions can be avoided with the right frameworks in place, even in resource and time-strapped environments.

Insights and case studies

In our blog series on AI in procurement we cover topics like the value of structured data for AI, and case studies from our partners in places like Brazil and Ukraine who are leveraging AI to strengthen procurement.

Training

Are you interested in understanding how you can improve your technology procurement, particularly of AI contracts? We are working with partners globally to deliver different types of practical training sessions – whether it’s to get a first overview of what matters or how to improve the procurement process in detail.

 

 

Our work and ongoing projects: AI in procurement

Some of the ways how we help our partners leverage AI for better procurement. Some of the recent examples include:

RAG, LLM
DREAM AI

In Ukraine, Public officials must navigate complex laws, methodologies, procurement rules, construction norms, financial requirements and donor conditions. The AI assistant provides real-time guidance on public investment management rules and the project preparation process directly within the DREAM interface, without replacing public servants, expert judgment, or political accountability.

LLM, Machine Learning
Medicamentos Transparentes

In Brazil, medicine procurement is fragmented, with thousands of local governments buying products across scattered systems, resulting in large price variations and inconsistent documentation. Without reliable information, public buyers can’t make smart decisions and citizens pay more. We matched procurement item descriptions from the public procurement system to entries in the goods and services catalog, using the open contracting data.

Our work and ongoing projects: Buying AI

Technologies like GenAI and agentic AI have the potential to help public sector organizations increase efficiency through automation and strengthen decision-making, helping stretch tight human resources to better serve the public.

Resource
Buying AI Guide

Our BuyingAI guide offers practical and hands-on tips to get the best results from your AI purchases. Developed with public sector procurement, project, and technology teams, it builds on the insights of over 50 public sector practitioners and experts. The guidance is designed to help you no matter where you are on your AI procurement journey. We provide procurement, project, and technology teams with actionable, plain-language information to help you get started with what’s essential when buying AI.

AI and open contracting data

AI is making it faster and cheaper to digitize procurement records, extract information from documents, and bridge gaps in data coverage.

But to make the most out of AI, governments need to invest in structured systems that produce high-quality data by design, and AI tools that help fill gaps, augment coverage, and make the data more useful.

OCP’s Open Contracting Data Standard provides a shared structure that makes data comparable and accountable, creating the foundation that makes everything else work.

Contact our experts

Kathrin Frauscher,
Deputy Executive Director

Kaye Sklar,
Head of Content & Insights

James McKinney,
Head of Technology

Find out how we can help you