AI Procurement

The policies, processes, and contractual standards an organization uses when buying AI products or AI-containing services. AI procurement is distinct from general software procurement because AI products raise additional questions: what data will the vendor use for training? What bias testing has been done? Who is liable if the AI makes a discriminatory decision? Government AI procurement is a rapidly evolving area — the US Office of Management and Budget and the EU have both issued AI procurement guidance requiring agencies to assess AI risks before purchase. For private organizations, AI procurement governance means having a defined evaluation checklist, contract protections, and approval process before any new AI tool is adopted.

A local government's AI procurement policy requires any AI vendor to complete a security questionnaire, provide a model card, sign a DPA, and agree that the government's data will not be used for training before the contract is signed.