Should I buy an AI product or build one in-house?

Answered

Choose a route that fits the need — exchange schemes, pro-bono pilots, competitive flexible procedure, framework call-off, or standard procurement — and get commercial advice early. Pilots are not exempt from procurement law; you must still follow the Procurement Act 2023 and consider data protection and security from the start.

From the guidance

Primary (how) AI Knowledge Hub: Procuring AI

Based on your needs you have a range of options available to you: If you wish to add specific technical expertise to your team temporarily, find out about Exchange schemes; If you wish to explore frontier technology where no proven solution exists, find out about Pro-bono pilot competitions; If you wish to select a supplier based on working prototypes they build during competition, find out about Competitive Flexible Procedure; If you wish to buy standard tools and solutions quickly from pre-approved suppliers, find out about Framework call-off; If you wish to procure when other routes do not fit or contract value requires full competitive tendering, find out about Standard procurement.

Section: Choose your procurement route

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Secondary (normative) Guidelines for AI procurement

As a general principle any AI procurement should be investigated with the mindset of “how could AI technologies potentially benefit us?” rather than “how can we make our problem fit an AI system solution?”.

Section: AI-specific considerations within the procurement process

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Secondary (normative) AI Knowledge Hub: Procuring AI

Despite these unique characteristics, you must still: follow the Procurement Act 2023; consider data protection and security from the start; ensure fair competition (or document why you're using direct award); assess value for money; document your procurement decisions. AI procurement is not exempt from procurement law.

Section: Procuring AI

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Secondary (normative) AI Playbook for the UK Government

This might be an off-the-shelf product, an existing technology with bolt-on AI elements (paid or free), outsourcing AI builds (if applicable), or co-creating AI with suppliers.

Section: Specifying your requirements

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