AI Procurement

AI Procurement

Knowledge Bundle: Public-Sector AI Readiness Concept ID: government:ai_procurement Concept Type: Procurement Guidance Status: Draft Audience: Procurement staff, IT teams, legal counsel, department leaders, vendors Steward: OKF Expert AI Use: Human-reviewed Last Reviewed: June 2026

Purpose

AI procurement is the process of evaluating, purchasing, contracting for, and managing artificial intelligence tools or services in a way that protects the agency, the public, and the integrity of government operations.

AI tools should not be purchased solely because they are popular or impressive. They should be evaluated based on the problem they solve, the risks they introduce, the data they require, and the agency’s ability to govern their use.

Procurement Questions

What specific business problem will the AI solution address?
Is AI necessary, or would a simpler tool solve the problem?
What data will the vendor collect, process, store, or retain?
Will the vendor use agency data to train its models?
Where will data be stored?
What cybersecurity standards apply?
What privacy protections are required?
Can the agency audit or review the vendor’s performance?
Can the agency export its data if the contract ends?
What happens if the vendor changes pricing, features, models, or terms of service?
What human review and accountability requirements apply?

Recommended Procurement Requirements

Clear scope of work
Data ownership provisions
Data retention and deletion requirements
Confidentiality and privacy protections
Cybersecurity requirements
Incident notification requirements
Limits on vendor model training using agency data
Accessibility requirements
Audit and reporting rights
Performance measures
Exit and transition provisions
Requirement for human oversight where appropriate

Vendor Evaluation Categories

Category	Questions to Ask
Security	How does the vendor protect data, manage access, and respond to incidents?
Privacy	What data is collected, retained, shared, or used for model training?
Transparency	Can the vendor explain how the system works and what its limitations are?
Reliability	What happens when the system produces inaccurate, incomplete, or harmful output?
Accessibility	Does the tool support accessible public services and staff use?
Interoperability	Can the agency export data and integrate with existing systems?
Governance	Does the vendor support audit logs, administrative controls, and human oversight?

Procurement Record

For each AI purchase, the agency should maintain a record including:

Proposed use case
Responsible department
Vendor name
Data involved
Risk level
Required approvals
Contract protections
Review date
Renewal or termination conditions

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