June 4, 2025
Presenters:
James Wake: Lead Public Sector, Hitachi Digital Services UK
Mike Pierides: Partner, Morgan, Lewis & Bockius LLP
Here’s what you missed:
The webinar provided an overview of the UK Procurement Act 2023, which took effect in February 2025. The Act introduces greater flexibility for public authorities in designing procurement processes but also increases the expectation for transparency and communication with suppliers. Authorities are now required to publish more notices and, for contracts over £5 million, publicly report Key Performance Indicators (KPIs). A formal debarment list has also been introduced, and there’s renewed focus on SME participation through strategies like contract “lotting.”
One major shift is the move from awarding contracts based on “Most Economically Advantageous Tender” (MEAT) to “Most Advantageous Tender” (MAT), allowing broader criteria such as social value and technical merit to play a more central role in decision-making. Authorities can also refine award criteria mid-process, though this can’t affect earlier decisions.
Artificial Intelligence is another key focus. AI is now embedded in most tech procurements, often offered even when not requested. This raises concerns around due diligence, ethical deployment, and contract exit strategies—especially when AI systems learn from an organization’s data. Authorities need to define AI clearly in contracts, test solutions thoroughly, and address complex issues like data use, IP ownership, liability, and compliance with evolving regulations.
James Wake provides a brief overview of Hitachi Digital Services’ expertise in AI and Gen AI, emphasizing their “R202 framework” (Responsible, Optimal, Reliable, and Observable AI) to ensure ethical deployment and address concerns like explainability and bias. He shares a case study of an invoice matching solution delivered for a company, demonstrating:
- Successful Application of Gen AI: The solution used Gen AI to extract data from documents and automation for processing.
- Tangible Benefits: The project achieved high accuracy (currently 95% and improving), significant cost reduction (92%), and aligned with UK government strategies for cost savings through AI deployment.
- Real-World Deployment and Scaling: Hitachi has experience taking Gen AI solutions from proof of concept to deployment and scaling.
Key Takeaways
- The Procurement Act introduces significant flexibility and transparency, requiring authorities to adapt their practices.
- AI is now integral to public sector tech procurement, but brings complex legal, operational, and ethical challenges.
- Authorities must go beyond vendor promises, focusing on real-world testing, compliance, and contract design.
- Clarity, diligence, and transparency will be crucial throughout procurement and contract lifecycles.
- Both procurement regulations and AI technologies are rapidly evolving—ongoing learning and adaptation are essential.
Here’s a short AI-generated podcast for you to listen to:
