Cities rethink procurement for the AI era
As artificial intelligence and other emerging technologies evolve at an unprecedented pace, cities are finding that traditional procurement processes are no longer fit for purpose.
A new City Innovation Network whitepaper explores how Miami, Kansas City and Long Beach are redesigning procurement to better identify, test and scale innovative solutions. The report also examines the role of organisations including Miami-Dade Innovation Authority, GovTech Ventures, Civic Marketplace, Marketplace.city and Glass in helping public agencies strengthen market engagement and technology discovery.
The case studies highlight a shift away from specification-driven procurement towards approaches that begin with defining the problem rather than prescribing the solution. Cities are increasingly using innovation challenges, pilot programmes and early market engagement to better understand emerging technologies, attract a broader range of vendors and create more effective pathways from experimentation to deployment.
The whitepaper also argues that successful procurement begins long before an RFP is issued. Investing in market intelligence, peer-city collaboration and vendor discovery enables governments to make more informed decisions, reduce procurement risk and improve the likelihood that successful pilots can be scaled into operational services. Collaborative purchasing models and procurement platforms are also helping smaller municipalities access expertise, existing contracts and proven solutions that might otherwise remain out of reach.
While procurement remains essential to ensuring transparency and competition, the report concludes that it is becoming a strategic capability rather than simply a compliance function. By focusing on problem definition, collaboration and structured pathways to implementation, cities are building procurement models that are better equipped to support innovation in an increasingly dynamic technology landscape.
Rethinking public procurement: How cities are building new pathways for innovation is a 17-page, member-exclusive resource from the City Innovation Network (CIN). CIN members can access this report alongside additional research, virtual sessions and in-person events. Learn more about membership here.
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