The Role of Artificial Intelligence in Identifying and Preventing Corruption in Public Procurement

The procurement of goods and services by public institutions, commonly known as ‘public procurement,’ is an important element of the market economy (Naudé & Dimitri, 2021). In most OECD member countries, public procurement accounts for a significant percentage of Gross Domestic Product (GDP), with an average around 10-15% of GDP (OECD, 2015). In Albania’s case, based on official data from Albanian institutions such as the Ministry of Finance, INSTAT, as well as regular public procurement forecasts and the European Commission’s Progress Report, the public procurement market in Albania represented approximately 9.4% of GDP in 2022, compared to 10.7% in 2021 (EU Progress Report, 2023). Although public procurement accounts for only about 10% of GDP in Albania, it still represents a substantial part of public spending, necessitating its efficient use. Therefore, this study examines the role of artificial intelligence (AI) in enhancing transparency and efficiency in public procurement, analyzing AI’s potential to identify and prevent corruption and unethical practices. Public procurement, a key tool for innovation and meeting the needs of public administration, is an area where AI applications have considerable potential to drive positive changes (Obwegeser & Müller, 2018). However, the use of AI in these areas also faces ethical and regulatory challenges, including invasive surveillance, discrimination, and data misuse (Bostrom, 2014; Dafoe, 2018). This study will draw on literature on innovation and public procurement to address issues such as inequality and strict control in public processes, suggesting that AI can help balance efficiency and innovation to meet secondary policy goals, such as supporting SMEs and promoting sustainable public procurement.