AI Potential in Public Procurement Tasks: Applicability, Time Savings, and Quality Improvement

Abstract

Artificial intelligence (AI) implies significant potential benefits for business process development and procurement. This study explores the potential of AI in the context of business process development for public competitive tendering. AI is not yet widely exploited in procurement. However, AI has been identified to have benefits while it is used concurrently with human interaction. There does not exist considerably research that specifically identifies the capabilities of AI in procurement. The extant literature has recognized that AI has potential in operational, tactical and strategic levels in procurement. This paper is constituted to an integrated literature review and empirical data combined with semi-structured interviews and a questionnaire as the primary data collection methods. The empirical data is analyzed with summarization and categorization for understanding meanings as well as quantitative data is visualized to disclose what quantitative data comprehends. The results elucidate how AI can be applied widely in procurement processes, and identifies preparation of request for quotation, contract composing and analyzing offers as the most beneficial tasks for applying AI.