Generative AI in the Public Sector under the AI Act: Challenges and Opportunities for Procurement

The article delves into the challenges and opportunities of integrating Generative AI into the public sector within the regulatory framework set forth by the EU AI Act. GenAI offers promising potential for improving administrative efficiency. However, it also raises legal and operational issues, especially in the context of public procurement. Framing procurement as a critical entry point, this study adopts a rights-based approach anchored in the right to good administration. Following a review of the technical and regulatory foundations of GenAI, the article assesses three procurement models: in-house development, reliance on private suppliers via subscription services, and hybrid solutions. In this regard, it scrutinises the consequences of each of these models in terms of cost-effectiveness, transparency, impartiality, data protection and cybersecurity. Moreover, it touches upon the EU Model Contractual Clauses for AI Procurement, published in March 2025. The article concludes by advocating hybrid (and small-scale) approaches as the most responsible for the deployment of GenAI in the public sector