Happened in AI

Glossary

Procurement

How governments and other organizations buy goods and services, including AI tools, under formal rules.

Procurement is the process of buying, from deciding what is needed to running a competition, signing the contract, and managing it. In the US federal government it is governed largely by the Federal Acquisition Regulation and agency supplements.

Procurement is one of the most direct ways governments shape AI. Contract terms can set requirements on data handling, security, testing, and transparency that vendors must meet to sell to agencies, often before any law applies.

Contract terms apply to the vendors and purchases they cover. A procurement rule does not regulate how the same product is sold to businesses or consumers.