Digital transformation of public procurement

This policy paper explores how digital technologies are transforming public procurement into a more connected, efficient, and user-focused process. From early e-procurement tools to today’s use of artificial intelligence and data analytics, digital transformation is reshaping how governments buy goods and services. The paper highlights three key areas driving this shift: integrating procurement processes end-to-end, adopting emerging technologies, and using data to inform decisions. It also sheds light on the major challenges governments face—from siloed systems and outdated infrastructure to limited digital skills and resistance to change. Drawing on real-world examples from OECD and partner countries, the policy paper offers a fresh perspective on how governments can better meet public needs through smarter procurement. By putting users at the centre, breaking down institutional barriers, and making the most of technology and data, digital transformation can make procurement more transparent, agile, and effective.