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On 5 January 2025, the Competition and Markets Authority (CMA) announced the trial of an artificial intelligence (AI) tool designed to detect collusion in public procurement by scanning and analysing bidding data at scale.1 According to Sarah Cardell, the Chief Executive of the CMA, the pilot has already proved successful with one government department.

The CMA’s announcement is particularly topical given the Government’s statement on 13 January 2025 regarding the intended integration of AI into the public sector, to improve the delivery of services and turbocharge growth and living standards in the UK.2

The tool will address the risk of bid-rigging in public procurement, a practice which can undermine competition and inflate costs for taxpayers. More specifically, the tool will analyse bidding data to identify suspicious patterns that may be indicative of anti-competitive conduct. By leveraging advanced data analysis, the CMA aims to uncover more instances of collusion, where companies conspire to manipulate bids for public contracts by, for example, agreeing to artificially increased prices or a reduction in the quality of the goods or services.

Given that gross spending on public sector procurement is upwards of GBP300 billion per year in the UK and fraudulent actions have an estimated cost to the public of GBP21 billion per year, such tools are critically needed.3

This trial coincides with the implementation of the Procurement Act 2023 (Act), which will come into effect on 24 February 2025. The Act aims to modernise and streamline public procurement across the UK, including through increased transparency.

Of relevance, in certain circumstances, companies which have participated in, or which are participating, in competition law infringements will be excluded from procurement processes under the Act. Further, the Act also includes a new debarment regime which allows a Minister to prohibit companies from bidding for certain public contracts for up to five years after being excluded from a procurement process on grounds under the Act relating to competition law infringements.

Practical steps for businesses to take

Given this pilot, businesses engaging in public procurement should:

  • Conduct internal audits and review bidding practices thoroughly to ensure competition law compliance.
  • Implement monitoring systems to detect potential bid-rigging, considering the CMA’s enhanced detection capabilities.
  • Update compliance programmes and deliver targeted training to prevent anti-competitive behaviours and bid-rigging.
  • Familiarise procurement teams with the provisions of the Procurement Act 2023 and how they may affect the ability to participate in public procurement processes.
  • Develop a strategy for responding to CMA investigations, including “dawn raid” protocols and training for appropriate employees.

Please contact the authors if you have any questions, or if it would be useful to discuss anything further.

This publication is intended to be a general overview and does not create a lawyer-client relationship. It is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. DLA Piper will accept not responsibility for any actions taken or not taken on the basis of this publication.

1 “UK faces ‘significant risk’ from procurement collusion, CMA warns”, Financial Times. Available here.
2 “Prime Minister sets out blueprint to turbocharge AI”, GOV.UK. Available here.
3 “The government missed a trick to fight fraud and corruption in its new Procurement Bill”, Spotlight on Corruption. Available here.