Overview
This PPN applies to all central government departments, their executive agencies and non-departmental public bodies (collectively referred to as ‘in-scope organisations’) when awarding public contracts for goods, and or services, and or works, other than special regime contracts. Other public sector contracting authorities may wish to apply the 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; see 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 supplier.
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 Annex B of the PPN ‘Example Disclosure Question 3’).
Note:
This PPN replaces PPN 02/24 for procurements commencing on or after 24 February 2025.