A professional’s guide to the Procurement Act 2023. We explore the new legislation and offer a FREE COPY of our 50-page Procurement Act Handbook (published 2025). Expert guidance and checklists!

In this extract of the ESG Pro Procurement Act Handbook, we consider the key changes to the Procurement Act 2023 and especially the role of technology in public procurement.

Technology and Procurement

Introduction to Technology in Public Procurement

The Procurement Act (2023) arrives at a time when digital transformation is redefining procurement across the public and private sectors. The role of technology in procurement is no longer optional—it is an essential tool for increasing efficiency, ensuring compliance, enhancing transparency, and improving the supplier experience.

Government procurement has historically suffered from administrative inefficiencies, complex tendering processes, and challenges in supplier engagement. Advances in e-procurement platforms, artificial intelligence (AI), blockchain, and big data analytics have opened new opportunities to streamline procurement activities while strengthening compliance with evolving regulatory requirements.

This section explores the impact of digital technologies on procurement, the specific digital tools facilitating procurement transformation, and how suppliers can leverage these advancements to remain competitive under the Procurement Act (2023).

The Role of E-Procurement Platforms

One of the most significant transformations under the Procurement Act (2023) is the increased reliance on e-procurement systems to manage public sector contracts. These platforms enable a more standardised and structured approach to procurement, reducing manual processes and increasing visibility for both buyers and suppliers.

Key Features of E-Procurement Platforms

• Centralised tender management: Public sector buyers can publish, evaluate, and award contracts digitally, reducing paperwork and accelerating decision-making.
• Supplier registration and qualification portals: Suppliers can pre-register on procurement platforms, ensuring faster and more efficient tendering.
• Automated compliance checks: Digital platforms can verify suppliers against PPN requirements, Social Value benchmarks, and environmental sustainability
• Live contract performance tracking: Buyers can monitor supplier commitments in real-time, ensuring greater accountability and contract fulfilment.
• Data transparency and audit readiness: Procurement authorities can maintain digital records of all procurement activities, reducing the risks of corruption and mismanagement.

E-procurement platforms such as Jaggaer, BravoSolution, and Delta eSourcing are already widely used in UK government procurement, with further advancements anticipated under the new regulatory framework.

Artificial Intelligence and Automation in Procurement

AI and automation are set to play a central role in procurement transformation, enabling government bodies and suppliers to process vast amounts of data quickly and efficiently. AI-powered procurement solutions can improve decision-making by identifying risks, recommending the best suppliers based on past performance, and ensuring tenders align with compliance standards.

Applications of AI in Public Procurement

• Bid evaluation and scoring: AI algorithms can automatically score supplier bids based on predefined criteria, reducing bias and improving fairness in procurement decisions.
• Fraud detection: AItools can identify inconsistencies in bidding patterns, flagging potential cases of fraud, collusion, or non-compliance.
• Supplier risk assessment: AI-powered risk models can analyse financial records, past performance data, and supply chain integrity to ensure only credible suppliers receive contracts.
• Contract automation: AI-driven contract management systems streamline document verification, contract amendments, and compliance reporting.
• Predictive procurement analytics: AI can analyse market trends and past procurement data to forecast demand, helping government buyers make more strategic purchasing decisions.

These AI-driven capabilities are expected to enhance procurement efficiency while ensuring that all tenders align with the goals outlined in the Procurement Act (2023), such as transparency, value for money, and Social Value integration.

Blockchain for Secure and Transparent Procurement

Blockchain technology is emerging as a revolutionary tool for securing and streamlining procurement transactions. Blockchain provides an immutable, decentralised ledger of procurement activities, ensuring a tamper-proof and fully auditable contract history.

Benefits of Blockchain in Public Procurement:

• Fraud Prevention: Smart contracts eliminate the risk of document tampering and fraudulent claims.
• Automated Payments and Milestones: Blockchain-based contracts automatically trigger payments when suppliers meet specific conditions, reducing delays and payment disputes.
• Supply Chain Transparency: Every step of a procurement process, from supplier selection to contract execution, is recorded in an auditable blockchain ledger.
• Data Integrity for Audits: Public procurement regulators can verify contract data instantly, reducing the risk of corruption and bid manipulation.

Although blockchain adoption in UK government procurement is still in its early stages, initiatives such as the UK Government Digital Service (GDS) exploration into blockchain for procurement transparency suggest wider adoption in the coming years.

Big Data and Analytics in Procurement Decision-Making

The Procurement Act (2023) emphasises data-driven decision-making, making big data analytics a critical tool for procurement professionals. Government bodies now collect vast amounts of procurement data, which can be analysed to improve efficiency, reduce costs, and enhance supplier performance.

Key Uses of Big Data in Public Procurement:

• Supplier Performance Analysis: Evaluating historical data to assess a supplier’s reliability, on-time delivery rates, and compliance records.
• Market Intelligence: Identifying market trends to predict supply chain disruptions and mitigate risks in procurement planning.
• Cost Optimisation: Analysing spending data to identify inefficiencies and uncover cost-saving opportunities.
• Real-Time Contract Monitoring: Tracking supplier commitments in real-time to ensure performance aligns with contractual obligations.

With procurement data becoming more centralised and accessible under the new Act, analytics will play a crucial role in shaping procurement decisions and contract awards.

Procurement Act 2023 Readiness Checklist: Leveraging Technology

To ensure compliance and remain competitive in the evolving procurement landscape, suppliers should:

	Invest in e-procurement platform registration to streamline the bidding process and gain visibility in public tenders.
	Adopt AI-driven procurement tools to improve bid evaluation, automate compliance, and enhance supplier risk assessments.
	Explore blockchain solutions for contract integrity and supply chain transparency.
	Implement real-time analytics dashboards to monitor procurement performance and ensure Social Value commitments are met.
	Engage in digital training and upskilling for procurement teams to leverage the latest digital tools effectively.

Summary

The Procurement Act (2023) is ushering in a new era of digital-first procurement, where technology plays a central role in ensuring compliance, transparency, and efficiency. Businesses that embrace e-procurement platforms, AI automation, blockchain security, and big data analytics will not only comply with new regulations but also gain a competitive advantage in securing public sector contracts.

In the next section, we will explore Managing Procurement Risks and Challenges, discussing the key risks associated with the new procurement framework and how businesses can mitigate them effectively.