From AI Governance to Purchaser Control: A Comparative Analysis of Public-Sector AI Contractual Regimes
Year: 2026
Type: preprint
Abstract: Public-sector organizations increasingly procure artificial intelligence (AI) systems from external suppliers while retaining responsibility for the public functions those systems support. This study examines how official public-sector AI contractual regimes translate AI governance requirements into formal purchaser–supplier control arrangements. Using structured comparative document analysis, the study compares official AI-specific contractual instruments from the European Union, Australia, and California across four dimensions: supplier obligations, purchaser rights, verification mechanisms, and contractual responses. The analysis identifies a central distinction between supplier responsibility and purchaser control. Contractually requiring a supplier to satisfy an AI governance requirement does not necessarily provide the public purchaser with corresponding rights to obtain information, verify performance, exercise decision or intervention authority, or respond to identified problems. The findings highlight verification as an important link between assigned supplier responsibility and purchaser oversight while distinguishing verification from intervention and contractual remedy. The study contributes to research on AI governance, public procurement, and contractual governance by providing a comparative account of how governance requirements are operationalized through formal AI procurement arrangements. The analysis is limited to contractual design and does not assess implementation effectiveness, supplier compliance, or legal enforceability.
Author: Alaali, Hasan mohamed Husain
Institution: University of Bahrain
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7204858053