Page 63 - CMA Journal (Jul-Aug 2026)

F oc us S ec t ion

Maintaining this balance between technological o cer. Continuous learning is also a vital component Strategic Priorities for Ethical AI-Driven performance but will rely on human capabilities,
e ciency and human responsibility is essential for in an organization. Organizing learning capabilities Procurement leadership and governance. These elements can help
building institutional trust, transparency and ensures all sta are equipped to respond to evolving build e ective, open, accountable and trusted
accountability. Organizations that invest in workforce legal, technological and stakeholder needs. To The ability of an organization to integrate the procurement processes that are in place and
capabilities alongside technology are more likely to e ectively create and implement AI in procurement, technology with competent human resource, ethical integrated within organizations.
achieve sustainable and e ective digital the business needs to have visionary leadership, leadership, and institutional capacity to withstand
transformation. proper governance, competent workforce, and an shocks and stresses will be a factor in the procurement Recommendations for Policymakers
Introduction governance and more Continuous professional development is therefore ethical culture of accountability. future, not only technological innovation itself. and Organizations
e cient operations by critical to responsible AI adoption. Through Pakistan's Public Sector Context: Reliable AI requires not only technical excellence, but Coordinated e orts between government agencies,
Arti cial Intelligence (AI) is increasingly being used to providing quicker and partnerships with academic institutions, also e ective governance, human oversight and
improve procurement e ciency, transparency, better decision making. knowledge-sharing initiatives, professional Preparing for Ethical AI-Enabled institutional accountability (OECD, 2019; UNESCO, regulatory agencies, professional associations, and
supplier evaluation and irregularity detection as certi cations and ongoing training, procurement Procurement 2021). academic institutions are necessary to bring ethical AI Cooperation between governmental organizations, Businesses should treat AI as a strategic ally to
governments digitize their systems (OECD, 2019; World AI can assess a supplier's professionals can remain updated on evolving ethical from concept to practice. The following suggestions, academic institutions, and business sectors can complement human skills. Human capital is at the
Bank, 2023). It can modernize procurement processes overall performance in Digital governance has come a long way in Pakistan, as Often businesses assess digital transformation by which are based on the previous debate, could help promote the creation of workable AI governance center stage of digital transformation, and by focusing
and strengthen transparency and trust in public terms of quality, stability, standards, regulatory requirements and technological part of bigger public sector reform processes. The investing in software, automation or infrastructure. rms create procurement systems that are solutions and expedite the exchange of knowledge on this, organizations can make sure that AI is used as a
procurement (Wirtz et al., 2019). delivery timeliness, risk developments. Ultimately, responsible AI-enabled country's e orts to modernize public nance Human agency and oversight must continue to be institutionally robust, ethically sound, and (World Bank, 2023). tool to promote accountability, transparency, and
exposure and procurement depends not only on developing smarter administration, expand e-governance services and crucial to AI-enabled decision-making, as the UNESCO technologically sophisticated. sustainable public good instead of just an automated
However, AI adoption also raises ethical and sustainability e orts, not technologies but also on developing capable enhance regulatory oversight suggest a commitment Recommendation on the Ethics of Arti cial Maintain Human Accountability for AI-Assisted solution. The best sustainable strategy for achieving
governance concerns, particularly because just by relying on professionals who can use, question and govern those to improve public nance accountability, e ciency Invest Equally in Technology and Human Capital Decisions procurement excellence and fostering public
procurement involves signi cant nancial technologies e ectively. and transparency. Some positive developments in Intelligence highlights (UNESCO, 2021). High-value procurement decisions, supplier con dence in the digital economy is this
commitments and public accountability. previous experience or public administration are the increasing adoption of The second priority is to enhance institutional AI literacy, data governance, and ethics and assessments, and circumstances with substantial human-centered approach (OECD, 2019; UNESCO,
Responsibility for ethical AI use rests with those who knowledge. Procurement Leadership, Governance, and digital nancial systems, e-procurement platforms, governance. Organizations need to establish procurement analytics should be part of the structured nancial, legal, or reputational rami cations should all 2021; NIST, 2023).
design, manage and evaluate these systems (UNESCO, experts can concentrate Organizational Readiness and information-based decision making, which might governance processes that address issues with learning programs in organizational capacity building. require human monitoring. The public's con dence in
2021; NIST, 2023). on strategy planning, supplier relationship cybersecurity, explainability, algorithmic fairness, data Based on international experience, AI capability in the References
management, risk mitigation, and value creation Ethical AI is only feasible in companies that are willing indicate a more exible and technologically advanced workforce is one of the most powerful factors for AI-enabled procurement systems is strengthened and
AI should therefore support, not replace, human through automating boring administrative tasks. This to embrace innovation in conjunction with the moral public administration. quality, and compliance to procurement legislation governance is strengthened when signi cant human • Dwivedi, Y. K., Kshetri, N., Hughes, L., Slade, E. L., Jeyaraj, A., Kar, A. K.,
judgement. Procurement professionals need skills in transformation can help the procurement team move precepts of accountability, transparency, and The e cacy of AI depends on the skills of those in (NIST, 2023). successful AI adoption (OECD, 2019; UNESCO, 2021). control is maintained (UNESCO, 2021). Baabdullah, A. M., et al. (2023). “So what if ChatGPT wrote it?”
Multidisciplinary perspectives on opportunities, challenges and
ethical decision-making, data analysis, regulatory from transactional to strategic relationships, thereby responsibility. Leaders who perceive AI as a strategic charge of the procurement process, even though Develop Comprehensive AI Governance Promote Adaptive Regulatory and Institutional implications of generative conversational AI for research, practice and
compliance and critical evaluation. Organizations must helping to realize a wider corporate goal in turn. digital infrastructure is a crucial basis. AI literacy, ethical The third priority is to foster an organization that is Frameworks Frameworks policy. International Journal of Information Management, 71, 102642.
also promote responsible innovation, transparency capability are more likely to allocate resources for continually learning and exible. Professional https://doi.org/10.1016/j.ijinfomgt.2023.102642
National Institute of Standards and Technology. (2023). Arti cial
and accountability alongside technological Human Capital: The Cornerstone of workforce development, ethical governance, and decision-making, data governance, cybersecurity development, executive education, and an emphasis Governance frameworks should be established with Adaptive governance (OECD, 2019) allows • Intelligence Risk Management Framework (AI RMF 1.0). U.S. Department of
advancement (UNESCO, 2021). Ethical AI-Driven Procurement organizational learning. awareness, and risk management should be included on multidisciplinary learning will help companies clear responsibilities, data transparency, data quality organisations to be responsive to the development of Commerce. https://doi.org/10.6028/NIST.AI.100-1
in professional training besides the use of digital tools.
Organization for Economic Co-operation and Development. (2019).
For Pakistan, where public-sector digitalization is Human capital is a fundamental enabler of ethical One of the main challenges of leadership is to develop Moreover, the vision and commitment of the better navigate emerging technologies and evolving standards, human oversight, and auditing. The NIST innovation and to maintain accountability, • Recommendation of the Council on Arti cial Intelligence.
transparency, and regulatory adherence. AI can
contribute
investments
These
to
regulations.
expanding, successful AI adoption requires investment AI-enabled procurement. AI adoption is often viewed an organization culture that fosters responsible leadership will play a crucial role in shaping the future Arti cial Intelligence Risk Management Framework empower organizations to leverage the technology OECD/LEGAL/0449.
in institutional readiness, employee capabilities, primarily as a technology investment, with innovation. Businesses with an ethically-driven of procurement in Pakistan. Public sector leaders can innovation, as well as ethical responsibility in all (NIST, 2023) is a document that will be of great bene t • UNESCO. (2021). Recommendation on the Ethicsof Arti cial Intelligence.
ethical leadership and continuous professional organizations focusing on software, digital mindset, that facilitate open dialogue, communication drive responsible innovation by encouraging procurement activities (World Economic Forum, 2025). to organizations aiming to manage risks arising from e ectively while maintaining the integrity, Paris: United Nations Educational, Scienti c and Cultural Organization.
development. This article proposes a practical infrastructure and system integration. However, and collective accountability are more likely to identify continuous innovation and learning, ensuring Procurement decisions are increasingly becoming AI, while maintaining the reliability of their AI systems. transparency, and accountability by adopting a • World Bank. (2023). GovTech Maturity Index 2023: Advancing Digital
approach to strengthening transparency and without su cient AI literacy, decision-makers may any potential unexpected implications that could cross-functional collaboration, and put in place connected with nance, legal issues, information Strengthen Continuous Professional Development balanced approach that leverages AI and human Transformation in the Public Sector. Washington, DC: World Bank.
World Economic Forum. (2025). The Future of Jobs Report 2025. Geneva:
accountability in digital procurement by combining AI either accept automated recommendations without create a risk to procurement integrity. governance systems to ensure accountability for technology, cyber-security, internal auditing and risk expertise and institutional integrity. • World Economic Forum.
with human expertise and e ective governance. adequate scrutiny or overlook valuable insights Another essential aspect of AI governance is AI-supported decisions. management. AI-generated recommendations can be To implement specialized certi cation programs and Conclusion • Viale Pereira, G., Parycek, P., Falco, E., & Kleinhans, R. (2021). Smart
AI and the Evolution of Public because they do not understand how AI-generated transparency. Transparency boosts business trust in The cooperation between the government evaluated by organizations from multiple perspectives executive education in AI-enabled procurement, As governments and organizations embark on their Governance in the Context of Smart Cities: A Literature Review.
Information Polity, 26(2), 1–18. (We may replace this with a
digital governance, and responsible AI, professional
Procurement outputs are produced. The objective should therefore procurement processes by uncovering and xing departments, universities and professional accounting and, with the help of cross-functional collaboration, accounting organizations, procurement authorities, digital transformation, AI can enhance procurement procurement-speci c AI governance paper if we identify one that ts
be to establish a balanced relationship between AI and
reduce the risk of unintentional bias and raise
possible biases or mistakes that could impact results.
better.)
Technological innovation is crucial to making human expertise, where AI supports informed AI models can be periodically tested, audited by third rms can further enhance the national readiness. The corporate accountability (OECD, 2019). academic institutions, and public-sector training performance, reduce ine ciencies, boost compliance, • Sun, T. Q., & Medaglia, R. (2019). Mapping the Challenges of Arti cial
partnerships would enable the development of a
and
promote
transparency
throughout
the
operations e cient, but businesses need to cultivate decision-making rather than replacing professional parties, assessed for data quality and monitored for workforce that would be future ready and robust facilities should work together. Procurement procurement process. The e ects of AI on procurement Intelligence in the Public Sector: Evidence from Public Healthcare.
Government Information Quarterly, 36(2), 368–383.
experts capable of making informed choices and judgement. performance to detect novel vulnerabilities stemming enough to be resilient to the new challenges to Lastly, companies need to understand that the key to a professionals will be able to respond to quickly • Wirtz, B. W., Weyerer, J. C., & Geyer, C. (2019). Arti cial intelligence and the
uphold ethical standards while ensuring that AI Human involvement remains essential throughout the from algorithmic bias, data integrity, cybersecurity or procurement in the legal and technical realm. The successful procurement reform is still public trust. changing technologies while upholding high ethical will depend on the quality and guidance of the public sector Applications and challenges. International Journal of Public
remains responsible to corporate values and public procurement process, particularly when decisions regulatory requirements. procurement process ought to be looked at as a critical Building trust is a task for capable individuals, and professional standards thanks to ongoing organizations, humans and governance to make this Administration, 42(7), 596–615. https://doi.org/10.1080/
happen.
expectations in the quest for sustainable procurement involve signi cant public funds, strategic component of institutional integrity and public value accountable leadership, open governance, and professional development (World Economic Forum, 01900692.2018.1498103
reform. AI can be used by procurement professionals organizational interests or public accountability. While Collaborative decision making allows organizations to as part of Pakistan's digital transformation agenda institutional behavior; algorithms can only play a role 2025). With the changing landscape of governance in About the Author: Dr. Syed Faraz Ali is an academic and
to monitor supplier performance, predict demand, AI can improve e ciency, speed and analytical balance the advantages of technology innovation, cost rather than merely an administrative process. In in fostering trust. Encourage Multi-Stakeholder Collaboration Pakistan's public sector, this is a perfect chance to management professional with extensive experience in higher
manage inventory, identify potential procurement capacity, human professionals must remain savings, compliance, ethics, and practicality. The conclusion, companies need to carefully weigh The strategic goals re ect the central theme of the bring innovation and accountability in the use of AI for education administration, organizational development, human
risks, track contract adherence, and even ag anything responsible for interpreting results, assessing risks and governance table is more e ective and aware of innovation and ethics, as well as talent and skill article, Ethical AI-driven procurement is a human and Interdisciplinary involvement strengthens institutional public sector procurement. Investments of digital resource management, quality assurance, and
unusual that could be a sign of nancial irregularity or making consequential decisions. decisions as it now includes the unique input from the development, to harness the vast potential of AI for organizational problem, as well as a technological one. responsibility, lessens organizational silos, and infrastructure will be needed to take advantage of this industry-academia collaboration. His research interests include
fraud. These capabilities create more e ective treasurer, attorney, internal auditor, compliance encourages balanced decision-making. promise. leadership, digital transformation, public sector governance,
specialist, cybersecurity specialist and procurement enhancing procurement results. Digital tools can help to create better procurement human capital development, and organizational effectiveness.
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