Reminder: Law and Technology Workshop, today, noon ET

Friday, December 19, 2025, noon - 1 pm ET

Giulia G. Cusenza: From Policy to Practice: Closing the Gap in AI Public Procurement

Discussant: Cary Coglianese

Abstract:

Most AI systems used for algorithmic governance are acquired through procurement contracts with private technology vendors at the local, state, and federal levels. Scholars and policymakers widely agree that public procurement offers a powerful lever for shaping and regulating the use of AI in government. But a relevant question remains largely overlooked: do procurement contracts actually deliver on this promise?

This Article addresses that question through a systematic analysis of publicly available state-level procurement contracts governing the acquisition of AI systems. It examines contractual provisions across a set of critical dimensions, including data access and confidentiality, ownership and intellectual property rights, stakeholder engagement, assessment and acceptance testing procedures, and data security and cybersecurity. The analysis reveals a persistent gap between policy aspirations and procurement practice. Contracts governing AI acquisition are often inadequate to accomplish their intended regulatory purposes, as they fail to address the unique risks associated with algorithmic governance. As a result, public procurement remains a blunt regulatory instrument.

Building on these findings, the Article identifies the structural factors that weaken the ability of state agencies to leverage public procurement as an effective regulatory tool, including limited bargaining power, significant information asymmetries, and an overreliance on generic contractual templates. Drawing also on emerging comparative experiences, the analysis advances a set of normative proposals aimed at recalibrating procurement practices through targeted legislative intervention, centralized and collective purchasing strategies, and the development of standardized AI contractual models.

Closing the Gap in AI Public Procurement_draft.pdf855.22 KB • PDF File

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