Read our views on the impact of PPN 017 on bidding into the UK public sector.
Key aspects of the AI guidelines
This is crucial to prevent biases and ensure that AI systems are fair and accountable.
Additionally, the guidelines require that all AI systems undergo regular audits to identify and mitigate any potential biases. This includes monitoring the performance of AI systems and making necessary adjustments to ensure they remain fair and unbiased.
The guidelines also stress the importance of training for all personnel involved in the procurement process to ensure they understand the ethical implications of using AI and can identify and address any potential issues.
Impact on bidders
For bidders, these guidelines mean that transparency and ethical considerations must be at the forefront of their AI strategies. Bidders will need to ensure that their AI systems are transparent and can provide clear explanations of how decisions are made. This may require significant investment in documentation and auditing processes to ensure compliance with the guidelines.
PPN 017 states that "There are potential benefits to suppliers using AI to develop their bids, enabling them to bid for a greater number of public contracts." While there are potential benefits to suppliers using AI to develop their bids, enabling them to bid for a greater number of public contracts, the primary advantage lies in improving the quality of these bids. AI can assist bidders by offering enhanced data analysis, uncovering insights that might not be immediately apparent, generating ideas for content, suggesting drafts based on previous winning answers, and editing and reviewing drafts.
Another crucial point highlighted in PPN 017 is the requirement for suppliers to disclose their use of AI in the creation of their tender responses. This is emphasised in the statement: "Asking suppliers to disclose their use of AI in the creation of their tender."
The rationale behind this requirement is to ensure transparency and accountability in the procurement process. By making it mandatory for suppliers to reveal their utilisation of AI, the guidelines aim to prevent any potential misuse or over-reliance on AI technologies that might compromise the integrity of the bidding process.
An illustrative example of one of the questions suggested for buyers to include in their tenders from Annex B of PPN 017 is as follows:
"AI tools can be used to improve the efficiency of your bid writing process; however, they may also introduce an increased risk of misleading statements via 'hallucination'. Have you used AI or machine learning tools, including large language models, to assist in any part of your tender submission? This may include using these tools to support the drafting of responses to award questions. Yes / No. Please provide details."
This question not only prompts suppliers to disclose their use of AI but also encourages them to provide details on how these tools were used. This level of transparency is essential in ensuring that AI is used ethically and responsibly in the procurement process. It will help buyers assess the reliability and integrity of the bids they receive, while also fostering an environment of openness and trust between bidders and buyers. Depending on your definition of what an AI tool is, will vary the answers from bidders. For example, do you count autofill or editor functions in Word as AI?
Moreover, bidders will need to be proactive in addressing potential biases in their AI systems. This includes regularly monitoring the performance of their AI systems and making necessary adjustments to ensure they remain fair and unbiased. Bidders will also need to invest in training for their personnel to ensure they understand the ethical implications of using AI and can identify and address any potential issues.
The UK government's AI guidelines represent a significant step towards ensuring ethical and responsible use of AI in procurement. By emphasising transparency, accountability, and fairness, these guidelines provide a framework for ensuring that AI systems are used responsibly and ethically in procurement processes. For bidders and buyers, this means investing in documentation, auditing, and training to ensure compliance with the guidelines and address any potential biases in their AI systems.
