Days after The Independent reported on the apparent use of artificial intelligence in a government-commissioned medical report, the state added safeguards to its public procurement process to reduce risks associated with the use of AI.
On Dec. 2, the Public Procurement Agency “updated its contract template to include an AI risk mitigation clause,” Janelle Sims, transportation and safety media relations manager, said in a statement on behalf of the agency. “In collaboration with the Judiciary and Public Safety and the OCIO, additional safeguards were implemented on January 15, 2026, including revised solicitation templates and submission forms.” The new safeguards were first reported by The Canadian Press.
The changes to the contract template come just 10 days after The Independent reported that a $1.6 million health workforce report for provincial governments by Deloitte Canada contained false citations, which Deloitte later acknowledged were the result of the use of artificial intelligence.
Two days after the November 22 report, Prime Minister Tony Wakeham’s office told The Independent that he had asked Government Services Minister Mike Goosney to “start looking at what guidelines should be put in place to prevent this from happening in the future”. The Independent has requested an update on Mr Goosney’s review but has not yet received a response from the department.
“The State Government recognizes that understanding and mitigating the risks associated with artificial intelligence requires continued collaboration across sectors,” Mr. Sims said on behalf of the Public Procurement Agency.
The Deloitte AI scandal is the second to rock the government in recent months. In September, CBC/Radio-Canada reported that the province’s new 10-year education agreement contained AI-generated errors. The report’s authors, Anne Burke and Karen Goodnow, later said the error was likely made within the government after the researchers submitted their draft.
On November 29, the government appeared to corroborate this claim. A spokesperson for the Department of Education and Early Childhood Development told The Independent:[t]”Inaccurate citations and references generated by AI are unacceptable,” the government said, adding that the government “will ensure that the application of AI within government is subject to rigorous scrutiny, human verification, and transparent quality control.”
Sims said last week that the Office of the Chief Information Officer is “currently leading a review of AI practices” and that the OCIO’s findings “will shape future approaches to using this technology across government.” Sims also said the OCIO is “ensuring that the use of artificial intelligence within government continues to include strong human oversight and transparent quality control.”
An updated template for the government’s Request for Proposals contract states in the section on “Use of Artificial Intelligence” that procurement “deliverables” are subject to the government’s own regulations. Responsible use of artificial intelligence technology It also states that “it is important for states to understand the privacy, security, and operational implications related to AI before making a ruling.” The contract also states that proponents “must declare” “all intended uses of AI and/or machine learning to meet the deliverables” in a separate submission form.
The relevant part of the form, shared by the Public Procurement Agency with The Independent, asks contract suppliers to acknowledge that the government has “reserved rights”. […] Evaluate AI-related risks at any point leading up to or after the conclusion of a contract and implement tools that we deem necessary for such an evaluation in our sole discretion. ”
It also requires suppliers to “immediately restrict, disable, or limit the AI features or capabilities of their Deliverables upon request by the state.” The form further requires proposers and suppliers to “fully declare all intended or potential uses/applications of AI to fulfill the deliverables.” If the proposer selects “Yes” on the form, they must “outline the intent or potential uses/applications of the AI.”
Public Procurement Minister Barry Petten said last week that under the new policy, the government will be able to “investigate, approve, reject or change how and for what purpose a vendor is using AI, and can also audit a vendor’s use of AI.”
“That’s a big change,” he said.
Deloitte is currently under investigation by Chartered Accountants NL regarding its use of AI in healthcare reporting. The company did not respond to The Independent’s request for comment.
