Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Accepted
Detail how AI sourcing framework will ensure value and competition for government procurement.
Recommendation
DSIT and Cabinet Office have a long way to go to strengthen government’s approach to digital procurement to ensure value for money and a thriving AI supplier market. The technology market is rapidly evolving with a shift from upfront capital purchases to subscription–based models, and greater consolidation of the supply chain. Technology suppliers, charities and academics have raised concerns with us that the dominance of a small number of large technology suppliers in the AI market risks stifling competition and innovation. We also heard concerns that government procurement approaches are ill–suited to a dynamic, fast–paced market, increasing risks to value for money from vendor lock–in and the inability to adapt and take advantage of rapid technological development. The government is aware it has a lot to do to adapt its procurement approach to keep up with the pace of change in the sector, and to leverage its significant buying power. It has committed to setting up an AI sourcing and procurement framework, including rapid procurement and national tenders where appropriate. It has also confirmed it will establish a digital commercial centre of excellence to deepen its expertise. The success of these measures will be critical if we are to see a vibrant AI market in the UK and value for money in the procurement of AI for the public sector. recommendation DSIT, in collaboration with Cabinet Office, should set out publicly how its proposed AI sourcing and procurement framework will: • get the best from all suppliers in a market dominated by a small number of global technology companies and ensure opportunities are available for small suppliers • align with the overarching digital technology sourcing strategy (on how government builds, buys and partners) that the Blueprint for modern digital government promises • leverage government’s spending power to achieve value for money for citizens • Ensure those taking procurement decisions across government have access to the
Government Response Summary
The government agrees and commits to defining a digital procurement strategy focused on AI sourcing, publicly articulating an AI procurement framework, and providing training and support resources like an AI Playbook for government professionals.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. DSIT, Cabinet Office/Crown Commercial Service and departments, will define the government's digital procurement strategy, with a particular focus on AI sourcing. The DCCoE’s mission is to leverage the combined procurement power of the government, to secure best value and stimulate a competitive environment for all suppliers. To achieve this, DSIT will publicly articulate an AI procurement framework, designed to transparently outline how the government will engage a diverse range of suppliers. This framework will be aligned with the overarching digital technology sourcing strategy as envisaged in the Blueprint for Modern Digital Government including: • A focus on Digital Partnerships leveraging resources from across government to develop relationships and supporting agreements with suppliers. • Collaboration with Crown Commercial Service to develop the quality, relevance and accessibility of procurement agreements for AI tools and services. Additionally, DSIT will help technology and procurement professionals across government to work in a more unified manner, aligning the functional strategies and driving collaboration, knowledge and raising digital and commercial skills. This will include training and support resources, such as The AI Playbook for HM Government, AI Accelerator and the AI Community of practice.