EU model contractual clauses for AI procurement: A practical guide

In late March, the Public Buyers Community of the EU published model contractual clauses for the public procurement of artificial intelligence, which are rapidly becoming a reliable source of best practice standards for private-sector AI contracting. An initiative by the Directorate General of Growth of the European Commission, the Public Buyers Community aims to advance economic growth, competitiveness and business development, particularly among small and medium-sized businesses.

As companies implement third-party risk policies as a part of their AI governance programs, these MCC-AI may influence procurement functions and guide customers' purchasing processes. The clauses largely follow the requirements for high-risk AI systems as defined under the EU AI Act.

It is critical to make a conscious risk-based decision grounded on a set of best practices as AI capabilities evolve and become more impactful. The MCC-AI, published in light and high-risk versions along with helpful commentary, demonstrate two risk tiers of complete model contractual clauses and represent a library of clauses that are useful to address specific risks.

The MCC-AI can be beneficial to private sector companies in accomplishing several goals, including aligning standards for best practices in AI contracting, creating a blueprint for risk management, ensuring international compliance, demonstrating supply-chain due diligence and mitigating litigation risk. Private sector companies and public sector organizations are not legally required to use the MCC-AI.