Procurement as the engine of digital delivery: turning policy into practice
Emma James
Chief Commercial Officer, Digital Modus
The Procurement Act 2023 (PA 2023), which came into effect in February 2025, represents a significant reform to public procurement, designed to be more flexible, transparent and streamlined. With final implementation phases landing in early 2026, it is timely to reflect on how procurement is becoming the real engine behind digital delivery.
Digital ambition may be set in policy, but it is procurement that determines whether that ambition becomes reality. This is especially true as public sector organisations look to adopt and scale AI-enabled services.
On paper, the Act promised a new era of openness, fairness and value for money. In practice, it has exposed the scale of change required. While organisations had time to prepare, digitised systems were not universally ready, and many remain constrained by legacy infrastructure, fragmented data and manual processes.
Yet this is where the opportunity lies. The Act’s principles, transparency, efficiency and accountability, can act as a catalyst for digital adoption, if supported by the right technology, governance and culture.
A moment of digital opportunity
Public sector bodies manage billions in annual spend, yet procurement is often administratively heavy and disconnected. The shift towards AI-enabled services demands a more integrated, data-driven approach.
Feedback on PA 2023 is mixed. Publishing pipelines and tracking supplier performance are widely supported, but delivery has highlighted gaps in digital capability. Good procurement in this context means more than compliance. It means enabling innovation to scale, with interoperability and data-sharing built in from the outset.
From transparency to insight
Transparency is central to the Act, but publishing data is not enough. Information must be accessible, connected and actionable. Procurement data should integrate with finance, contract and supplier systems. Without this, compliance risks becoming a reporting exercise rather than a driver of better outcomes.
Technology is critical here. Platforms such as Salesforce can act as connective tissue across systems, creating a single source of truth. With Agentic AI, teams can track supplier performance, monitor delivery and identify risks in real time; shifting procurement from reactive to proactive.
Building the conditions for scale
Technology alone is not enough. Procurement reform is also cultural. Teams face significant pressure, balancing statutory duties with savings targets and rising expectations. The PA 2023 asks them to go further and act as strategic enablers of value.
This requires closer collaboration between procurement, finance and service leaders, supported by shared data and digital tools. When teams align around the same insights, decision-making improves and outcomes accelerate. This is particularly important for scaling AI-enabled services, where trust in data and strong supplier relationships are essential.
Data-driven procurement
The next phase of reform must focus on smarter, data-driven procurement. Public sector organisations hold vast amounts of supplier and spend data, much of it siloed. Unlocking this is key to delivering on the Act’s promise.
Industry has a vital role to play. Technology partners can help build connected procurement ecosystems that offer spend analytics, supplier insights and automated workflows that embed compliance and support better decisions. In practice, this means less time on process and more on outcomes.
Turning compliance into capability
The PA 2023 is already driving greater consistency and governance. The next step is to turn compliance into genuine capability.
Procurement is no longer just a function. It is the mechanism through which digital ambition is delivered. Organisations that invest in the right tools, data and ways of working will be best placed to scale AI-enabled services and deliver lasting public value.
