What does artificial intelligence mean for government procurement?

Generative AI – artificial intelligence that creates new content using machine learning algorithms – is improving rapidly. This has major implications for procurement, which accounts for around a third of government expenditure. Writing bids for contracts takes time, investment and resources, but by enabling suppliers to create bid text more quickly, generative AI will likely lead to more firms bidding for more contracts. This could lower barriers to entry for suppliers that may otherwise lack the resources to apply for government contracts, leading to more competition and better outcomes for government. But it is also likely to mean government having to process a larger volume of bids, and creates the risk of suppliers submitting more speculative bids due to the lower effort required. So what impact will reducing the bureaucratic burden of bid writing have on suppliers? Will this help government secure value for money through procurement? What can government do to prepare for a higher number of bids? And what are the possible downsides of the increased use of generative AI in the procurement process? To discuss these questions, the Institute for Government, gathered an expert panel including: Richard Allan, Member of the House of Lords Einav Ben-Yehuda, Chief Commercial Officer at the Department for Environment, Food and Rural Affairs Sally Guyer, Global CEO of World Commerce and Contracting Kate Steadman, Group Strategy & Communications Director at Serco Sean Williams, Chief Executive of AutogenAI The event was chaired by Nick Davies, Programme Director at the Institute for Government.