Updated AI Contractual Clauses: A New Framework for Public Procurement

EU’s Community of Practice Updates AI Model Contractual Clauses

The evolving landscape of AI contracting terms has prompted the EU’s Community of Practice on Public Procurement of AI to publish an updated version of its non-binding EU AI Model Contractual Clauses (MCC-AI). This updated document, released on March 5, 2025, aims to assist public organizations in procuring AI systems from external suppliers.

The Importance of MCC-AI

As the market for AI technologies continues to grow, there remains no standardized approach to contracting. The MCC-AI serves as a template for organizations to navigate the complexities of AI procurement. The initial draft was created in September 2023, and this latest version aligns with the EU AI Act, which came into effect on August 1, 2024, with staggered implementation timelines.

Templates Offered in the MCC-AI

The MCC-AI consists of two distinct templates:

  • MCC-AI-High-Risk Template: This template is specifically designed for procuring AI systems categorized as “high-risk” under the AI Act. It addresses the requirements and obligations outlined in Chapter III of the AI Act.
  • MCC-AI-Light Template: Intended for AI systems that are not classified as high-risk, this template can also be employed for other algorithmic systems that may still pose risks to health, safety, or fundamental rights. Like the High-Risk template, it is grounded in the provisions of Chapter III of the AI Act.

Usage Recommendations

The commentary accompanying the MCC-AI advises parties to select and apply provisions from the templates according to their specific circumstances. This necessitates a thorough understanding of the use case for the AI in question. Although the MCC-AI was primarily developed for public organizations, some clauses may also benefit private companies engaging in contracts for AI systems with external suppliers.

Encouraging Reporting of AI Use

Furthermore, the Community of Practice encourages public authorities utilizing the MCC-AI to report their applications to the Public Sector Tech Watch. This platform has already documented over 900 examples of AI implementations within the public sector, showcasing the breadth of AI’s impact in governance.

Conclusion

As AI technologies continue to advance, the MCC-AI provides a crucial framework for public procurement. Organizations must stay informed about developments in AI contracting and regulatory compliance to effectively leverage these resources. The guidelines set forth in the MCC-AI represent a significant step toward ensuring responsible and effective procurement practices in the realm of artificial intelligence.

Note: This document reflects ongoing changes in the field of AI procurement and should be regarded as a living resource.

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