Enhancing transparency and efficiency in public procurement with AI

Summary: 

The integration of AI into the DOZORRO system has significantly increased the efficiency of monitoring public procurement, ensuring transparency, and reducing the opportunities for corruption. By providing real-time analysis and monitoring, DOZORRO has become a powerful tool in the fight against corruption in Ukraine, promoting transparency, accountability, and trust in government institutions.

Client: 

Transparency International Ukraine is an official chapter of the global Transparency International movement, dedicated to developing and implementing strategies to reduce corruption levels. Established in Kropyvnytskyi (formerly Kirovohrad) in 1999, Transparency International Ukraine received full accreditation as a representative of the global movement in October 2014.

Problem Statement: 

Corruption in public procurement has been a persistent issue in Ukraine, leading to inefficiency, wastage of public funds, and a lack of trust in government institutions. The State Audit Service of Ukraine created 35 risk indicators to assess which tenders needed closer scrutiny. However, once these indicators became known, fraudulent bidders adjusted their behavior to avoid detection during audits.The challenge for Transparency International Ukraine was to create a system that could effectively monitor and analyze procurement processes, detect irregularities, and provide actionable insights to prevent corruption.

Results: 

• Automation of the monitoring process and data analysis.
• The identification of tenders with unjustified selection of the winner increased by 26%.
• A 37% increase in the identification of tenders with unjustified disqualification.
• The identification of tenders involving participant collusion increased by 298%.
• AI detected the highest number of violations in the most expensive tenders.
• Reduction of opportunities for corrupt practices through public monitoring and data analysis.

AI Solution Overview:

DOZORRO employs AI to scrutinize procurement data, identifying indications of corruption and irregularities in the procurement process. By rapidly scanning large volumes of data, the system significantly enhances the efficiency of expert tender analysis. Once illegal or suspicious tenders or purchases are detected, they are promptly reported to the authorities for investigation.

DOZORRO was launched as an online platform accessible to the public, government agencies, and civil society organizations. The AI system is seamlessly integrated into the platform, providing real-time monitoring and analysis of procurement processes. 

References: 

1. Artificial Intelligence – a promising anti-corruption tool in development settings? https://www.u4.no/publications/artificial-intelligence-a-promising-anti-corruption-tool-in-development-settings.pdf
2. Dozorro Artificial Intelligence To Find Violations In Prozorro: How It Works. https://ti-ukraine.org/en/news/dozorro-artificial-intelligence-to-find-violations-in-prozorro-how-it-works/

Industry: Public Procurement

Client: Transparency International Ukraine

Publication Date: 2018