Public procurement technological innovation for improving procurement outcomes is one of the areas that keep my mind busy.
I am a firm believer that the adoption of technological solutions which function as efficiency multipliers can increase the resilience in situations of abrupt demand spikes such as the one witnessed during the pandemic (as I argued here) . This holds true for procurement during “normal” times.
Although currently my engagement with procurement tech-innovation revolves around the field of healthcare procurement in the context of the ongoing Innovate UK projects (here and here with the brilliant colleagues at Vamstarand at the Information School of the University of Sheffield), I am interested in the exploration of the horizons that cutting edge technologies such as Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP) can open for the transformation of public procurement more widely. This is a “hot” area that adds extra layers to the ongoing procurement reform discussions around the world (see for example the contributions of Albert Sanchez-Graells, here and here).
The discussions among the public procurement practitioners crowd tend to emphasise that the introduction of these technologies cannot replace the human element in the process and that the full automation of the public procurement process cannot be achieved. On the other hand, discussions among the public procurement legal expert crowd focuses, not surprisingly, on the regulatory rules and other legal parameters that act as constraints in the deployment of such technologies in the public procurement process (for example the application of blockchain in the field of procurement and the possible legally problematic implications on competition, intellectual property rights and possibly on other fundamental freedoms).
I recently came across an article about the construction in China of a 590ft (approximately 180m) dam (Yangqu) using almost exclusively, according to the report, Artificial Intelligence (AI) and 3D printing. It made me think.
If the end-product, a bridge, a dam, a highway and so on, can be built almost exclusively using AI, robotics and other emerging technological solutions surely the process of awarding the relevant contract can be automated. It is not a matter of “if” but instead a matter of “when”. This is the big picture.
Moreover, it shows that the world is in the midst of a technological race (the 4th, 4 and a half, depending on the categorisation, Industrial Revolution) which is not an abstract concept but has already tangible and impressive applications. Public Procurement is not immune from these developments, but, I would argue, is located (or has the potential of being) at the heart of this new brave world. As in all competitive races there is a prize in victory or to be more precise in leading the race, because this is a Sisyphean task, a never ending endeavour.
If the end-product, a bridge, a dam, a highway and so on, can be built almost exclusively using AI, robotics and other emerging technological solutions surely the process of awarding the relevant contract can be automated. It is not a matter of “if” but instead a matter of “when”. This is the big picture.
With this race in mind I believe that the proposed new public procurement regime in the UK (here) shows awareness and appears to be at the appropriate wavelength, although as always the proper evaluation of the new regime will be possible when the all details of the latter will be finalised (a process which will not end with the enactment of the new bill, since most of details and innovative elements will be governed by secondary legislation instruments). In the field of AI in procurement specifically the 2020 UK Government AI Guidelines and other initiatives of the UK Government Office for AI such as the development together with the World Economic Forum of the AI Procurement in A Box of the already set the tone. Likewise, the EU with the proposed AI Regulation (“AI Act”) and other initiatives such as AI4EU, DT4Regions and the excellent webinar series of DG GROW and DG CONNECT promote what can be called as the West’s ethical use approach to AI utilisation.
How does this compare to China’s approach and what impact does it have on the Sisyphean task of technological leadership in the 4th Industrial Revolution?
As in all competitive races there is a prize in victory or to be more precise in leading the race, because this is a Sisyphean task, a never ending endeavour.
The applicable standards play a key role in this race. It would be incorrect to say that China does not have such standards. If one examines the Chinese AI regulations (Internet Information Service Algorithm Recommendation Management Regulations), in force since the 1st of March 2022, would see repeated references (see Articles 4, 7 and 8) to the ethical use of this technology. This means that prima facie standards between the “West” and China appear to be similar insofar as the anchoring of the utilisation of the new technology of ethical grounds is concerned.
Here lies the crux of the matter which explains the technological lead that China appears to have in the field. The difference in the approaches is not so much linked with the standards themselves but with the application of the standards; and in order to understand the differences one needs to look at first principles.
Although “both” approaches and the regimes that come under their umbrellas have “ethical rules” and safeguards in place to deter and prevent the “unethical use” of these technologies, the meaning attached to the notion “ethical” or better the width of the notion differs considerably. It is important to understand that this is not attributable to bad faith (“we follow the ethical rules they pay lip service to them”) but to a discernibly different point of departure: In the “West” the departure point is individual freedom and the associated rights of privacy and other fundamental rights. In China on the other hand the departure stems from the country’s philosophical traditions such as the teachings of Confucius where “societal welfare” i.e. the “greater good” trump, individual freedoms (See for example the excellent piece by Roberts, Cowls, Morley Taddeo, Wang and Floridi (Roberts, H., Cowls, J., Morley, J. et al. The Chinese approach to artificial intelligence: an analysis of policy, ethics, and regulation. AI & Soc 36, 59–77 (2021) ; available here).
Needless to say that the “greater good” (see “public interest”) often supersedes individual freedoms in the West too. However, this takes place on an ad hoc basis and only in so far as it is necessary (principle of proportionality). In China however the theoretical framework of the regime is based on the reverse logical process: everything starts with the “societal welfare” in mind. This makes” inroads” on individual rights much easier (both substantively and procedurally).
…does this mean that the West is coming into the technological tug of war ‘with one hand tied behind its back‘ (to remember the famous phrase of Israel Supreme Court’s Former President Aaron Barak), taking the view that it is not worth it “having the (technological) upper hand in the end” (the second part of Justice Barak’s aphorism) at the expense of its own soul?
At this point, I believe, lies a crucial dilemma for the Western approach: New technologies especially Al, thrive on data, especially the data generated by and connected to human activity and interaction. The ease of access, collection and integration of to this data by AI will determine the global technological leadership in this new age. China has a head start.
If this is the case, does this mean that the West is coming into the technological tug of war “with one hand tied behind its back” (to remember the famous phrase of Israel Supreme Court’s Former President Aaron Barak), taking the view that itis not worth it “having the (technological) upper hand in the end” (the second part of Justice Barak’s aphorism) at the expense of its own soul?
Difficult yet inevitable questions. I look forward to further exploring these questions and to hearing your comments and ideas.
PS. For those interested in continuing the exchange about the digital transformation of public procurement as well the discussion of other more “traditional” public procurement related themes and “preoccupations” do not forget to register to the next Public Procurement Global Revolution XI Conference here
See you there!
AoLAWxley
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