The UK’s Competition and Markets Authority (CMA) is leveraging artificial intelligence (AI) in its efforts to combat bid rigging, a practice that distorts public sector contracting and raises costs. CMA head Sarah Cardell highlighted that AI is being tested to analyze bidding data at scale to identify anomalies and potential anticompetitive conduct.
The initiative comes after the CMA raided offices of contractors and technical advisors involved in suspected bid-rigging on school roofing contracts. Cardell stressed that such collusion presents a significant risk to the government, potentially inflating public sector project costs. The AI tool, currently in a trial phase with an unnamed government department, is already proving successful in detecting irregularities.
The CMA’s focus on bid rigging stems from its recent investigation into roofing and construction firms suspected of colluding on bids funded by the Department for Education. The watchdog is probing whether this activity violates the Competition Act 1998, which could lead to significant fines and legal consequences.
In 2023, the CMA imposed almost £60 million in fines on 10 construction firms for similar practices. Cardell emphasized that by using AI to enhance data collection and sharing, the CMA could reduce public expenditure and potentially save taxpayers billions of pounds.
The CMA’s efforts underscore the importance of fair and open competition in driving productivity, innovation, and investment. Effective procurement and market contestability are seen as key drivers for economic growth, while helping ensure that public funds are used efficiently. The regulator’s use of AI in this area signals a new frontier in tackling illegal practices in public sector procurement.
