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.

More Insights

CII Advocates for Strong AI Accountability in Financial Services

The Chartered Insurance Institute (CII) has urged for clear accountability frameworks and a skills strategy for the use of artificial intelligence (AI) in financial services. They emphasize the...

Regulating AI in APAC MedTech: Current Trends and Future Directions

The regulatory landscape for AI-enabled MedTech in the Asia Pacific region is still developing, with existing frameworks primarily governing other technologies. While countries like China, Japan, and...

New York’s AI Legislation: Key Changes Employers Must Know

In early 2025, New York proposed the NY AI Act and the AI Consumer Protection Act to regulate the use of artificial intelligence, particularly addressing algorithmic discrimination in employment...

Managing AI Risks: Effective Frameworks for Safe Implementation

This article discusses the importance of AI risk management frameworks to mitigate potential risks associated with artificial intelligence systems. It highlights various types of risks, including...

Essential Insights on the EU Artificial Intelligence Act for Tech Companies

The European Union has introduced the Artificial Intelligence Act (AI Act), which aims to manage the risks and opportunities associated with AI technologies across Europe. This landmark regulation...

South Korea’s Landmark AI Basic Act: A New Era of Regulation

South Korea has established itself as a leader in AI regulation in Asia with the introduction of the AI Basic Act, which creates a comprehensive legal framework for artificial intelligence. This...

EU AI Act and DORA: Mastering Compliance in Financial Services

The EU AI Act and DORA are reshaping how financial entities manage AI risk by introducing new layers of compliance that demand transparency, accountability, and quantifiable risk assessments...

AI Governance: Bridging the Transatlantic Divide

Artificial intelligence (AI) is rapidly reshaping economies, societies, and global governance, presenting both significant opportunities and risks. This chapter examines the divergent approaches of...

EU’s Ambitious Plan to Boost AI Development

The EU Commission is launching a new strategy to reduce barriers for the deployment of artificial intelligence (AI) across Europe, aiming to enhance the region's competitiveness on a global scale. The...