GeM launches AI chatbot to enhance public procurement in India

On May 20, 2023, the Government e Marketplace (GeM) in India celebrated its eighth Incorporation Day, marking significant advancements in public procurement reform. The event highlighted GeM's ongoing commitment to fostering inclusive growth, digital governance, and enhancing economic empowerment. One of the major announcements was the launch of GeMAI, India’s first generative AI-powered chatbot designed to improve user support in public sector transactions. This chatbot represents a crucial step towards integrating advanced technology into government services. GeM has continually emphasized its mission to innovate and empower, particularly targeting micro and small enterprises, startups, weavers, and women-led businesses. CEO Mihir Kumar articulated the platform’s vision of not just transforming procurement but also creating an equitable marketplace. The platform reported a substantial growth in its reach, now boasting 1.64 lakh buyers and 4.2 lakh sellers, a testament to its effectiveness highlighted by studies from the World Bank and data from India’s Economic Survey, which noted an average cost saving of nearly 10 percent in government procurement. The platform has redefined public procurement in India by incorporating greater transparency and reducing costs. Currently, 97 percent of transactions on GeM are free from any transaction charges. The fee structure has been revised significantly, with reductions ranging from 33 percent to 96 percent and establishing a new cap for large orders, enhancing financial accessibility for sellers. These efforts are aimed at empowering small sellers and entrepreneurs, including unorganized self-help groups and farmer producer organizations. GeM's expanding impact is further evident as the platform achieves nationwide adoption across all 36 states and union territories. Notably, Uttar Pradesh has emerged as a leader in GeM adoption, while several states have made the use of GeM mandatory for various government procurement processes. The integration of GeM with Integrated Financial Management Systems (IFMS) in states like Assam and Kerala is indicative of its role in promoting digital transformation in public services. The implementation of advanced analytics for fraud detection and ongoing monitoring underlines GeM's commitment to transparency and accountability in public procurement.