ChileCompra's collaboration with academia has made it a global leader in the modernization of public procurement.
ChileCompra, the University of Chile, and UC Berkeley announced a new milestone in their partnership aimed at modernizing the public procurement system through artificial intelligence (AI). The project, "AI for Smarter Public Procurement in Chile," will develop tools based on large-scale language models (LLMs) to support both public agencies in formulating requirements and SMEs in identifying opportunities on the www.mercadopublico.cl platform.
The work will be led by Professor Paul Gertler (Berkeley Haas), in conjunction with academics Marcelo Olivares and Raimundo Undurraga from the University of Chile, who highlighted that this long-term international alliance has enabled progress to be made on innovative, evidence-based reforms. " ChileCompra's collaboration with academia has made it a global leader in the modernization of public procurement, "said Olivares. Undurraga added that the study will incorporate a randomized controlled experiment to identify and address inefficiencies in the public procurement market.
The project is part of ChileCompra's strategy to strengthen the use of advanced analytics and artificial intelligence to promote transparency and supplier participation. Its director, Verónica Valle, highlighted that this initiative "demonstrates Chile's commitment to innovation and data science to make public spending more efficient, open, and based on integrity," emphasizing that these tools also allow for "promoting greater competition and participation by SMEs."
From UC Berkeley, Gertler highlighted the global importance of advancing AI in this area: " Public procurement accounts for up to 20% of global GDP, but inefficiencies often limit competition and value for money. This work applies AI to one of the most important economic functions of the state, while helping to level the playing field for small businesses."
The initiative builds on six years of joint research between ChileCompra, the University of Chile, and UC Berkeley, which has led to significant improvements in efficiency and management. The new phase, funded by Schmidt Sciences, seeks to further these advances and consolidate Chile's leadership in the responsible use of artificial intelligence to strengthen the integrity, transparency, and modernization of the public procurement system.
More information on the University of Chile website.
