Assessing the value of artificial intelligence (AI) in governmental public procurement

What the paper says

Purpose The main purpose of this study is to enhance knowledge regarding the early stages of planning for and adopting artificial intelligence (AI) in governmental public procurement. While there are numerous studies on AI and procurement in private companies, there is limited information on AI and public procurement. Design/methodology/approach The empirical data consists of information obtained from 18 semi-structured interviews with procurement managers and individuals involved in the development of procurement at governmental agencies. Additionally, a workshop was conducted with the respondents to discuss and validate the study’s findings. Findings Findings indicate a generally low level of AI maturity in previous research and within the investigated governmental agencies. The perceived benefits of AI primarily revolve around improved operational capabilities, potential for certain process efficiencies and the ability to enhance monitoring through AI. Various challenges related to organizational, process, technological and data management were highlighted. Findings also indicate that perceived benefits and value created by AI can be viewed from a short-term perspective to a long-term perspective. Social implications The study provides insights into societal values that can be achieved using AI in public procurement. Originality/value This study provides a new perspective on AI in public procurement by focusing on governmental agencies. It explores the perceived benefits, interests and challenges associated with AI implementation in public procurement. Furthermore, this study discusses the potential outcomes of incorporating AI in public procurement and the impact it may have on the values created by the public service, both short- and long term.