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Public procurement and AI governance: Developing a strategic framework for middle powers

RAND · Afek Shamir ·

Executive Summary

This report explores how 'AI middle powers' can use public procurement as a strategic governance tool to mitigate risks associated with frontier AI systems, which are concentrated in the US and China. It proposes a framework of contractual guarantees for state buyers to address vendor lock-in, limited visibility, and data sovereignty issues. The paper recommends coordinated procurement among middle powers to strengthen their bargaining position and establish common standards.

Why It Matters

This document is crucial for defense and geopolitical analysts as it outlines how middle powers can strategically leverage public procurement to manage dependencies and risks associated with advanced AI systems, directly impacting national security and technological sovereignty.

Key Takeaways

  • Frontier AI capabilities are highly concentrated in the US and China, creating significant dependency risks for other nations.
  • Public procurement can serve as a governance instrument to secure contractual guarantees, mitigating vendor lock-in and data sovereignty vulnerabilities.
  • Coordinated procurement among AI middle powers can enhance bargaining power and establish common standards for AI acquisition.

Strategic Relevance

The paper provides a strategic framework for nations to navigate the geopolitical landscape of AI, offering mechanisms to reduce technological dependence and enhance national security through smart procurement policies. It highlights the importance of collective action for middle powers to influence global AI governance.

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Key Entities

AI middle powersUnited StatesChinaPublic procurementAnthropicOpenAIRAND EuropeUnited KingdomFranceGermanyCanadaSouth Korea

Best For

Policy MakersDefense StrategistsProcurement SpecialistsNational Security Analysts

Related Themes

Technological SovereigntyAI GovernanceStrategic CompetitionNational SecurityInternational CooperationSupply Chain Security

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