The use of artificial intelligence for innovation in the public procurement system

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Abstract

Public procurement represents a substantial share of national economies and is increasingly shaped by the deployment of artificial intelligence (AI). The research problem addressed in this study concerns how AI can be integrated into public procurement systems without undermining core principles of transparency, accountability, and legality. The purpose of the paper is to examine the transformative potential of AI in public procurement while identifying the legal, institutional, and ethical challenges it generates. Methodologically, the study adopts a comparative analytical approach based on procurement laws, government reports, and peer-reviewed scholarship, focusing on the United Arab Emirates (UAE), Estonia, and South Korea. The findings indicate that AI can significantly enhance efficiency, transparency, and sustainability in procurement processes, particularly through automation and real-time data disclosure (Organisation for Economic Co-operation and Development [OECD], 2025). At the same time, persistent challenges emerge, including insufficient AI-specific legal frameworks, limited algorithmic explainability, and risks of bias and exclusion (Sharifmousavi et al., 2024). The paper concludes that effective AI adoption in public procurement depends primarily on institutional readiness and hybrid governance models that combine algorithmic tools with meaningful human oversight. The study is relevant for policymakers and regulators seeking to balance innovation with legitimacy, particularly in the Arab context, where coordinated legal reform and open data standards remain essential.

Keywords: Innovation, Good Governance, Transparency, Sustainability, Accountability, Artificial Intelligence

Authors’ individual contribution: Conceptualization — K.S.A., K.M.D., F.T., and R.R.; Methodology — K.S.A., K.M.D., F.T., and R.R.; Writing — Original Draft — K.S.A., K.M.D., F.T., and R.R.; Writing — Review & Editing — K.S.A.; Supervision — K.S.A.; Project Administration — K.S.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: K10, K15, K19, K24

Received: 08.09.2025
Revised: 03.11.2025; 09.01.2026; 06.03.2026
Accepted: 23.03.2026
Published online: 25.03.2026

How to cite this paper: Aboelazm, K. S., Dganni, K. M., Tawakol, F., & Raafat, R. (2026). The use of artificial intelligence for innovation in the public procurement system. Journal of Governance and Regulation, 15(2), 178–188. https://doi.org/10.22495/jgrv15i2art15