Importance of AI Usage Transparency in Procurement

Nov 1, 2025
2 min read

Updated: 10 hours ago

Procurement teams face a growing challenge: protecting their organisation from the risks associated with AI usage introduced into their organisation through vendor deliverables.

Without a consistent disclosure standard that can be easily understood by all staff working with vendors, it becomes difficult to effectively manage the risks associated with undeclared AI Usage which can ultimately compromise organisational reputation, compliance obligations, and the expected return on investment.

Considerations

Reputation

Although many assume that AI is in use everywhere, individuals and organisations found to be using it without disclosure have faced significant criticism. Nuanced disclosure not only avoids overstating the originality of an artifact created with AI, but also recognises the extent of human judgement and input.

Compliance

Global regulatory frameworks demand disclosure, but lack clear guidance on how to deliver it. Adopting a global standard fills this gap, with organisations also benefiting from public reinforcement of the practice to drive consistent and compliant behaviour.

Limitations

Although AI has advanced rapidly, most users still overlook its limits - from weak situational awareness to biased analytics and insecure code. Transparent classification sharpens review cycles, helping teams focus not just on the context of the work but on known AI shortcomings. This reduces avoidable errors and prevents the kind of misplaced public scrutiny that undermines trust.

Importance of transparency

The AI Usage Classification™ (AIUC) Standard helps organisations mitigate these risks by offering a clear and consistent framework for vendors to disclose the extent of AI involvement in their deliverables. By embedding AIUC within their procurement processes, organisations can:

Facilitate proactive discussions about the appropriate level of AI usage within deliverables;
Strengthen trust in vendor outputs through disclosed AI usage;
Mitigate the risk of misrepresentation, misinformation, and undisclosed AI dependencies; and
Enable direct comparison of delivery methodology across suppliers;

AI transparency is emerging as the next pillar of responsible sourcing, alongside sustainability, privacy, and cybersecurity and AIUC Global provides organisations with an immediate and practical means to put this principle into action.