On 26 March 2025, the Public Accounts Committee (PAC) in the House of Commons issued a report titled Government’s Use of Artificial Intelligence, which examined the ability of public sector procurement systems to support a competitive and innovative AI supplier market. The report was prompted by stakeholder concerns that government procurement practices and market structures risk over-reliance on a small number of dominant technology suppliers, reducing flexibility and value for money. The PAC noted that the Government’s planned AI procurement framework and the proposed digital commercial centre of excellence could help improve capability and responsiveness in sourcing. However, it urged DSIT and the Cabinet Office to set out a clear strategy for how procurement processes will ensure access for smaller suppliers, align with broader sourcing goals, and prevent vendor lock-in. The Committee stressed the importance of equipping procurement teams with digital expertise to navigate a rapidly evolving AI landscape and safeguard public value.
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