Overview
This PPN applies to all central government departments, their executive agencies and non-departmental public bodies (collectively referred to as ‘in-scope organisations’). Other public sector contracting authorities may wish to apply this approach set out in this PPN.
As the Government increases its use of Artificial Intelligence (’AI’), it is essential to take steps to identify and manage associated risks and opportunities, as part of the Government’s commercial activities. There is a range of guidance available to support commercial teams to understand AI as a subject area, the appropriate use of AI within public services and how AI products should be procured; found in Annex A of the PPN. The PPN also provides some optional questions that can be incorporated into tenders (for information only) to understand suppliers’ use of AI, and to support risk management and mitigation of AI services in the delivery of the service.
It is important to note that suppliers’ use of AI is not prohibited during the commercial process but steps should be taken to understand the risks associated with the use of AI tools in this context, as would have been the case if a bid writer has been used by the bidder.
In certain procurements where there are national security concerns in relation to use of AI by suppliers, there may be additional considerations and risk mitigations that are required.
Where AI is likely to be used in the delivery of a service, commercial teams may wish to consider requiring suppliers to declare this and to provide further details (see example disclosure question, i.e question 3, in the PPN).
Objective at this commercial stage
In-scope organisations should be aware of the risks associated with the use of AI. To mitigate these risks, additional clarifications or supporting documentation might be required to ensure that suppliers have the appropriate capacity and capability to fulfil the requirements of the contract.
Key considerations at this commercial stage
In-scope organisations should:
- be aware that suppliers may use AI to prepare their selection questionnaire responses
- consider whether to ask for additional clarifications or supporting documentation to ensure that suppliers have the appropriate capacity and capability to fulfil the requirements of the contract.
Legal framework
The PPN should be read alongside the relevant parts of the legal framework, including but not limited to, the following provisions of the Public Contracts Regulations 2015 (which may be particularly relevant to the consideration of this PPN):
- Regulation 18: Principles of procurement
- Regulation 15: Defence and security
- Regulation 16: Mixed procurement involving defence or security aspects
- Regulation 17: Public contracts and design contests involving defence or security aspects which are awarded or organised pursuant to international rules.
- Regulation 21: Confidentiality
- Regulation 47: Setting time limits
- Regulation 56: General principles in awarding contracts
- Regulation 58: Selection criteria
- Regulation 60: Means of proof
- Regulation 107: Qualitative selection
- Regulation 111: Assessing suitability
Additional support and guidance
Make sure you:
- read the PPN and any supporting implementation guidance
- seek legal and commercial advice in the context of specific procurements
