The Role of Artificial Intelligence in Enhancing Transparency and Curbing Corruption in Public Procurement Processes: The Case of Albania

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). Even though public procurement constitutes only around 10% of Albania’s GDP, it still represents a sizable portion of public spending, therefore its effective use is essential. This study analyzes how artificial intelligence (AI) can improve public procurement’s efficiency and transparency while also assessing AI’s capacity to identify and prevent corruption and illicit conduct. 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 enhancing transparency and curbing corruption in public procurement processes.