With diligence, AI can improve procurement, report says

Ask any government IT official how artificial intelligence might aid their operations, and you’re likely to hear mention of “procurement,” the tortuous maze of processes and legal requirements agencies must follow when buying everything from staples to servers. According to a report published Tuesday by two industry associations, states can improve their procurement processes with AI — if they’re diligent.

The 11-page report published by the National Association of State Chief Information Officers and the National Association of State Procurement Officials draws on interviews with state members who shared lessons from successful and failed projects, such as the importance of collaborating across agencies and the potential threats AI poses to data privacy.

“The successful adoption of AI in public procurement requires a strategic, well-thought-out approach that begins with policy development and extends through collaborative efforts, targeted implementation and continuous evaluation,” the report concludes.

The groups advise states to follow seven key practices, including developing comprehensive AI policies and focusing on ethical use, such as by following AI standards set by the National Institute of Standards and Technology.

NASCIO’s focus on procurement is natural given its membership’s interest in reducing inefficiency in some of its most tedious and document-heavy processes. At a NASCIO conference in New Orleans this month, several state CIOs told StateScoop they’re interested in adding AI-powered bots into procurement and other workflows. Among them was Utah Chief Information Officer Alan Fuller, who said he’s pursuing augmenting staff with AI assistants.

And according to the report, state governments need help with their procurement processes given the challenges they face, which include an inability to buy new technologies quickly and a “shrinking pool of skilled workers.”

“Artificial intelligence (AI) offers a promising solution by automating routine tasks, reducing manual workloads and enabling public sector employees to focus on more strategic and value-added activities,” the report reads.

The most helpful ways that AI can help with procurement, according to the report, include automating document processing, running chatbots that can provide suppliers with answers to common questions and detecting fraud.

The groups warn that AI isn’t foolproof, though, and cite several common pitfalls they found while interviewing their members. Common mistakes states have made include not doing enough planning, not instantiating enough policy guidance and not communicating thoroughly across their organizations.