Use of AI in public tenders

Written By

henna malik Module
Henna Malik

Associate
UK

I am an associate in Bird & Birds public sector projects team within Bird & Bird's Commercial department, supporting clients in the public and private sectors on commercial transactions and relationships.

A Procurement Policy Note (PPN) on the use of AI in tenders was published in March 2024 (PPN 02/24: Improving Transparency of AI Use in Procurement). The PPN provides guidance to contracting authorities in respect of their duties to put proportionate controls in place to ensure confidential contracting authority information/information not in the public domain is not used to train AI systems.

The PPN addresses these risks by requiring suppliers participating in public tenders to disclose the use of AI in the creation of tenders. Where AI is used by suppliers to create tender responses, contracting authorities should undertake additional due diligence to ensure that the supplier has the necessary capacity and capability to fulfil the contract requirements. Such due diligence can include submitting clarifications and/or requests for supporting documents to be supplied by the supplier to the contracting authority to provide confidence as to the accuracy, robustness and credibility of the submitted tender information. Where national security is involved, additional risk mitigations may be invoked. Where AI may be involved in the delivery of a service (i.e. a non-AI service) contracting authorities may require suppliers to provide a declaration together with further details. Example disclosure questions: This development appears pragmatic given the widely publicised risks (particularly around the reliability of AI generated information) associated with the use of AI.

We look forward to monitoring the evolution of the rules relating to the use of AI in tender processes. Our previous article on the procurement of AI solutions is available here. If you have questions or should you wish to know more about this evolving area, please do get in touch.

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