AI in the Fight Against Bid-Rigging: UK Competition Authority Leverages Technology
UK CMA uses AI to detect bid-rigging in public contracts, ensuring fair competition.
Matilda
AI in the Fight Against Bid-Rigging: UK Competition Authority Leverages Technology
The UK's Competition and Markets Authority (CMA) is deploying artificial intelligence (AI) to combat a significant threat to fair competition: bid-rigging in public procurement contracts. This innovative approach leverages the power of AI to analyze vast datasets and identify potential collusion among companies vying for government contracts. The Challenge of Bid-Rigging Bid-rigging occurs when competing companies collude to manipulate the bidding process, often by: Price-fixing: Agreeing on specific prices or price ranges to ensure a particular company wins. Bid rotation: Taking turns to submit the lowest bid, ensuring that each company receives a share of the contracts. Information sharing: Exchanging sensitive information about their bids, giving them an unfair advantage. These practices can lead to inflated costs for taxpayers, limit innovation, and undermine the integrity of the procurement process. The CMA's AI-Powered Solution The CMA's pilot program utilizes AI algorithms …
