Navigating AI Procurement for US Public Agencies

Understanding the Current Landscape of AI Procurement in US Government

The regulatory environment for AI is still evolving, creating uncertainties for state and local governments in acquiring AI technologies. Public sector procurement rules are often complex, outdated, and inflexible, complicating the purchase of cloud technologies and the implementation of recommended cybersecurity requirements. These legacy procurement practices face additional strain with the introduction of AI technologies, making it challenging for government agencies to adapt.

Challenges Faced by Government Agencies in Procuring AI Technologies

Evolving Regulatory Environment: AI regulations are still being developed, causing uncertainties that require agencies to adapt their procurement strategies.
Complex and Outdated Procurement Rules: Rigid and inflexible procurement procedures hinder the acquisition of innovative technologies like AI.
Cybersecurity and Cloud Technology Integration: Archaic procurement rules limit the adoption of cloud technologies and robust cybersecurity measures, leaving agencies vulnerable.
Evaluation Complexities: Ensuring compliance with legal and ethical standards for AI solutions requires careful evaluation, which is complicated by the lack of standardized frameworks for assessing AI vendors and technologies.

Strategies for Overcoming Procurement Challenges

Stay Informed and Adapt: Agencies should monitor policy developments, engage with regulatory bodies, and seek expert guidance to adapt procurement strategies to emerging regulations.
Advocate for Modernization: Actively engage in efforts to update and streamline procurement procedures to accommodate new technologies better. Collaboration with lawmakers, industry experts, and stakeholders is crucial.
Establish Partnerships: Form collaborations with industry-leading AI vendors and technology providers to access cutting-edge technologies and reliable solutions.
Create Standardized Evaluation Frameworks: Develop criteria for evaluating AI vendors based on performance, security, compliance, and ethical considerations to streamline the procurement process.
Build Internal Expertise: Train procurement professionals in AI technologies and their associated challenges to enhance decision-making and procurement processes.

Best Practices for Evaluating and Selecting AI Vendors

Assess Vendor Experience: Evaluate the vendor's experience and track record in delivering AI solutions to the public sector through past projects, client references, and success stories.
Align Technologies with Needs: Ensure the vendor's AI technologies meet the agency's specific requirements by assessing functionality, performance, scalability, and security.
Evaluate Compliance and Security: Prioritize vendors that adhere to relevant regulations, standards, and ethical guidelines, focusing on data privacy, security, and ethical AI practices.
Transparent Selection Process: Define evaluation criteria, conduct thorough assessments, and involve stakeholders to promote transparency and collaboration.
Negotiate Protective Contracts: Work with legal and procurement experts to develop contracts addressing data ownership, protection, service level agreements, and intellectual property rights.

Ensuring Compliance and Security in AI Procurement

Monitor and Adhere to Regulations: Stay updated on emerging legal frameworks and industry best practices, and engage legal experts to ensure compliance in procurement contracts.
Prioritize Cybersecurity: Evaluate vendors' security practices, including data encryption, access controls, and incident response protocols, and conduct thorough risk assessments.
Establish Data Governance Policies: Define data ownership, access controls, data sharing agreements, and retention policies to protect sensitive data throughout the procurement process.
Promote Transparency and Accountability: Implement mechanisms for auditing AI technologies' performance and impact and ensure transparency in data collection, use, and decision-making processes to build public trust.

Resources & Frameworks to guide your agency through AI technology procurement:

General Services Administration (GSA): The GSA's AI Center of Excellence has developed frameworks and guidelines to streamline AI procurement for federal agencies. GSA AI Procurement Guide

Department of Defense (DoD): The Joint Artificial Intelligence Center (JAIC) centralizes AI efforts and develops procurement standards to address data security and ethical considerations. JAIC AI Strategy

State of California: The California Department of Technology provides guidelines and best practices for modernizing AI procurement processes. California AI Procurement Framework

National Institute of Standards and Technology (NIST): NIST offers comprehensive guidelines and standards for AI technologies, focusing on security and ethical use. NIST AI Standards

By leveraging these resources, government agencies can better understand the challenges and strategies involved in AI procurement, ensuring the successful and compliant acquisition of AI technologies.