Driven by data, automation and strategic governance, artificial intelligence (AI) will shift the future of procurement
As those in the public and private sector increasingly turn to AI to drive innovation, productivity, and efficiency, it is essential for those in procurement to evolve alongside these changes. At EiB Group, we are dedicated to staying ahead of technological advancements. This ensures our services remain fit for the future and enables us to support our clients in their endeavour to do the same, adapting proactively to associated risks and opportunities.
There are two complementary pillars to this article: our insights as a company actively integrating AI into our services and key considerations for our current and prospective clients to take into the coming period of AI procurement. First, we highlight several high-level takeaways from the recent Edinburgh Chamber of Commerce (ECC) event “The Future of Business: Data and Automation”, some of which we have found to be key considerations for our (continuing) exploration of integrating AI into our services. With this discussion, we hope to provide guidance for our clients who are likewise integrating AI into their services. Second, we address what our clients can expect following the UK-government-commissioned AI Opportunities Action Plan (“the AI Action Plan”) – and its response document the AI Opportunities Action Plan: government response.
Insights from the ECC data and automation event
At EiB Group, we actively engage with industry experts to continuously expand our knowledge and expertise. Bid Consultant Lucy Cunningham recently attended the ECC “The Future of Business: Data and Automation” event, gaining valuable insights into the practicalities of AI integration for our clients.
Event speakers highlighted multifaceted benefits of AI for companies, which tenderers and consultancies alike can leverage by integrating AI into their systems and services. Collective insights from the event underscored a broader narrative (also stated in the AI Action Plan): the UK is well positioned to become an AI maker, not just an AI taker, by fostering a strong ecosystem for AI innovation. This stance offers new opportunities for forward-thinking companies involved in procurement. Below are some key takeaways from the discussion.
Practical integration of AI: Strategies for success
For companies integrating AI into their services, success depends on a strategic approach. Key strategies include:
- developing AI governance frameworks with policies tailored to the company’s needs
- establishing AI focus groups to drive adoption across departments
- partnering with AI specialists to pilot AI in low-risk areas before scaling it across the company
- identifying company ‘use cases’ (areas of opportunity), such as productivity bottlenecks, where AI can add the most value
- upskilling employees to embrace AI-powered tools and processes.
People and AI: The human element
While AI brings about transformative change, the human element of providing our services remains crucial. We have invested in expanding our team’s technological competence, addressing potential caution by demonstrating the tangible benefits of coupling AI with human expertise, emotional intelligence and procurement experience.
For our clients, we suggest that co-creation – involving employees in identifying pain points within their job and associated AI ‘use cases’ – will facilitate smoother adoption. The introduction of AI champions whose role is to advocate for the integration of AI in their departments can facilitate wider adoption. Within EiB Group, AI champions are found within our innovation team.
AI ethics and transparency
As AI adoption increases, ensuring ethical standards and transparency in AI use becomes crucial for all parties involved in procurement. It is essential to align on AI ethics and values throughout the entire procurement process, from the pre-qualification questionnaire (PQQ) to the tender submission. One effective way to uphold transparency is through “AI disclosure clauses” in contracts. These types of clauses specify the extent and application of AI technologies used when providing services, ensuring clear communication and transparency.
As a consultancy, we work across a diverse range of tenders: those in which the use of AI is prohibited, those in which AI use must be disclosed through AI disclosure clauses and those in which the procuring authority does not request any details regarding AI integration. Our knowledge and experience of being subject to AI disclosure clauses gives us the ability to guide clients through AI-related tender requirements, helping you to stay competitive in an increasingly AI-driven procurement environment.
For more information on transparency of AI use in procurement (including example AI disclosure questions), look to the Procurement Policy Note: Improving Transparency in AI Use in Procurement (02/24).
The UK government’s AI Opportunities Action Plan
The UK government is intent on transitioning from an adopter of AI technology to an innovator in the field. Central to this vision is the UK government’s AI Opportunities Action Plan, which aims to position the UK as a global leader in AI. The UK government’s commitment to AI is evident in its pro-innovation stance, as highlighted in the foreword to the action plan: “In this next phase of AI development, we want Britain to step up; to shape the AI revolution rather than wait to see how it shapes us.” Investment in AI infrastructure aims to establish the UK as a data centre powerhouse, creating jobs and motivating AI startups to grow their businesses here.
The AI Action Plan emphasises three strategic categories: (i) investing in AI foundations; (ii) pushing for cross-economy AI adoption; and (iii) positioning the UK as a leader in AI development. Notably, it advocates for a vertical approach to AI regulation, allowing sector-specific tailoring of future regulation, to support industry needs and foster growth.
Practical implications for procurement
The Action Plan outlines 50 recommendations to advance AI integration across public and private sectors, with a focus on fostering innovation while maintaining ethical standards. As the commitments in the Action Plan are delivered, procurement processes will evolve, creating new opportunities. These opportunities are presented below.
Under recommendation 34, the UK government has agreed to develop a framework for sourcing AI, whether by building in-house or buying. This will mean new procurement opportunities to provide AI solutions.
Under recommendation 35, the UK government has agreed to have a rapid prototyping capability as part of the new digital centre in the Department for Science, Innovation and Technology. This capability will be drawn on for key projects, including technical and delivery resource to build and test proofs of concepts. This will create a new tendering model in the form of more frequent and small-scale government tenders to deliver rapid prototyping. For clients that can deliver innovative AI solutions, this presents a chance to collaborate with us on accelerated AI prototyping tenders.
Under recommendation 38, the UK government has agreed to scope and understand options to improve AI procurement with a faster, multi-stage, gated process. This will give clients the opportunity to work in faster procurement cycles involving a multi-stage, gated (for evaluation) procurement process. We expect shorter procurement cycles with reduced bureaucratic delays when engaging in these tenders.
Under recommendation 40, the UK government has agreed to scope options to improve AI procurement with mission-focused national AI tenders. These tenders, targeting specific outcomes (e.g. improving healthcare services or carbon management), will support rapid adoption of AI across decentralised systems led by the national (mission) delivery boards. These tenders will provide exciting opportunities for clients to work on high-impact projects
Under recommendation 41, the UK government has agreed to develop or procure a scalable AI tech stack (the technologies, tools and frameworks used to develop and deploy AI). This procurement would provide an opportunity for clients to play a key role in shaping the future of AI in government services.
Firstly, under recommendation 43, the UK government has agreed to procure smartly from the AI ecosystem as its largest customer and a market shaper.
Secondly, under recommendation 44, the UK government has agreed to scope options to use digital government infrastructure to create new opportunities for innovators. With our knowledge, we can help you to take advantage of the influx of opportunities on the horizon, with the aim of securing AI procurement opportunities in this rapidly evolving landscape.
Preparing for change
For our clients, we suggest the key to success lies in preparation. As the UK government continues to push forward with AI integration, we endeavour to expand our knowledge to continue to successfully advise and serve our clients. Below are our key proposals to ensure you are ready for the changing procurement landscape.
- Stay ahead of AI procurement opportunities: Monitor emerging AI tenders and anticipate upcoming opportunities, particularly in government services. As new frameworks for sourcing AI are developed, being early to identify these prospects will give a competitive edge.
- Embrace faster procurement cycles: As AI procurement cycles accelerate, you should expect shorter project timelines and more frequent tenders. This requires agility and the ability to respond to commissioning clients’ requirements quickly and effectively.
- Understand AI ethics and governance: As AI continues to advance, issues around data ethics, governance and transparency will remain top priorities. By staying informed about emerging regulations and practices such as the aforementioned disclosure clauses, you will be well-positioned to navigate the complex legal and ethical landscape of AI adoption.
Concluding remarks
The future of procurement in the UK is set to be dynamic and transformative, driven by strategic AI integration. As with the introduction of the internet, embracing AI-related change and opportunity with awareness and ambition will be key to unlocking its full potential.
At EiB Group, we are committed to helping our clients navigate change, leveraging our technical expertise and AI knowledge to ensure success. For more information on our approach to AI and how we can assist you on future opportunities, get in touch.