Bhopal: The use of Artificial Intelligence (AI), has now become a crucial part in the public forum. From technology, to healthcare, to the advancement of cities and roadways, AI is now an integral part of every public sector. It is equally important to acknowledge the fine line between public procurement and public exploitation, and Sandeep Verma IAS, Additional Chief Secretary, Department of Science and Technology, Government of Rajasthan breaks it down.
Speaking at the APAC 4th India Digital Empowerment Meet and Awards, Sandeep Verma says, “The public procurement system can be transformed using AI. For instance, let give me an example of GeM. Through application of AI, GeM has improved technical specification/procurement options at product selection stage, improved competition, and pricing of goods. It also helps in legal & regulatory compliances. But we also need to address the challenges of connectedness, scale & speed of AI solutions for public procurement.”
Let’s break down what Sandeep Verma IAS talks about.
What is Public Procurement?
Public procurement is the process through which government agencies acquire goods, services, or construction projects from external suppliers or contractors. It involves a transparent and competitive system where government entities publish procurement opportunities, evaluate supplier bids based on criteria like price and quality, and award contracts to the best-suited providers.
This process is governed by regulations and aims to ensure efficient use of public funds, promote fair competition, and support the delivery of public services and projects while upholding transparency and accountability standards.
What is GeM?
GeM, or Government e-Marketplace, is an online procurement platform established to facilitate the purchase of goods and services by various government departments and organisations and PSUs. It operates as a digital marketplace where registered sellers and government buyers can transact for a wide range of products and services.
GeM aims to streamline the public procurement process, increase transparency, and enhance efficiency by providing a centralised platform for procurement activities. It also encourages competition among suppliers, supports the “Digital India” initiative, and helps reduce costs while ensuring compliance with government rules and regulations. GeM has become a crucial tool for procurement in India’s public sector, benefiting both government agencies and businesses.
What are the applications of AI, simultaneously with GeM, in the PP life cycle?
Verma says it can:
- Improve technical specifications/ procurement options during the product selection stage, while GeM can identify similar and better products.
- Improve competition/ buyer oversight, in which GeM can identify buyer bias, split buying, and match buyers to sellers.
- Improve pricing of goods, while GeM can detect abnormally low bidding, analyse price reasonability and provide pricing on alternative platforms to improve the oversight of contractors.
- Improve legal and regulatory compliance, where GeM can show the availability of MSME and Make-In-India products.
- Improve other aspects of procurement decision-making which involves procedures like contract formation and administration, where GeM can forecast future demand, avoid improper technical rejection of products and misrepresentation of certifications and capabilities.
Talking about the challenges in public procurement of AI, Sandeep Verma IAS gives a simple solution- responsible deployment and procurement of AI solutions. He suggests that integrity should always be maintained and advised that the honey trap of “AI never lies, and citizens always do” should be avoided.
Discussion about this post