AI Transparency Policy

1. Our Commitment

ProcureLabs uses artificial intelligence to help procurement teams work more effectively. We believe you should understand exactly how AI is used in the platform, what data it processes, what decisions it can and cannot make, and what controls you have. This policy explains all of that.

2. AI Features

The platform includes an AI-powered procurement advisor called Pala. Pala provides:

• Spend analysis and category insights
• Supplier risk assessments and recommendations
• Contract analysis and clause extraction
• Transaction integrity and value leakage detection
• Sourcing strategy recommendations
• Natural language Q&A over your procurement data

All AI outputs are advisory. Pala analyses data and makes recommendations but does not autonomously execute procurement decisions, approve spending, create purchase orders, or send external communications without explicit human confirmation.

3. AI Providers

We use multiple AI providers to deliver different capabilities:

4. Data Handling

When you use AI features, relevant context from your procurement data is sent to AI providers for processing. Here is how that data is handled:

• No training on your data. Under our API agreements with all providers, your data is not used to train, fine-tune, or improve their models.
• Transient processing only. Data is sent for inference and the response is returned. Providers do not retain your data beyond the time needed to generate a response (typically seconds), except for short-term abuse monitoring logs as required by their terms (typically 30 days, with no human review unless flagged for safety).
• PII redaction. The platform automatically redacts personally identifiable information (names, emails, phone numbers) from prompts before sending them to AI providers where possible. You can configure additional redaction rules in Settings.
• Consent required. AI processing requires your explicit opt-in via the cookie consent banner or platform settings. If you decline, AI features are disabled and no data is sent to AI providers.

5. Autonomy and Human Oversight

ProcureLabs operates on a graduated autonomy model. The current platform setting restricts AI to analytical and advisory actions only:

No AI feature can approve spending, execute payments, sign contracts, or send external communications without a human confirming the action. This is enforced at the platform level and cannot be overridden by individual users.

6. Accuracy and Limitations

AI-generated content is probabilistic and may contain errors. You should:

• Treat all AI outputs as recommendations, not decisions
• Verify numerical claims, supplier assessments, and risk scores against source data
• Apply professional procurement judgment before acting on AI suggestions
• Report inaccurate outputs using the feedback button on any AI response

We do not guarantee the accuracy, completeness, or fitness for purpose of AI-generated content. See our Terms of Service for liability limitations relating to AI features.

7. Bias and Fairness

AI models can reflect biases present in their training data. We monitor AI outputs for bias in supplier scoring, risk assessment, and recommendation systems. If you observe outputs that appear biased (for example, systematically disadvantaging suppliers from certain regions or of certain sizes), please report it to support@procure-labs.com. We investigate all reports and adjust our systems where bias is confirmed.

8. Audit Trail

Every AI decision is recorded with the model and version used, a hash of the prompt and of the input and output payloads, the autonomy level in force, and the accountable party. The record is tamper-evident and available to your administrators in the AI Governance section. We store digests rather than prompt and response text by design: it gives you provenance you can audit without a second copy of your data leaving the boundary you approved.

9. Your Controls

• Opt out entirely: Decline AI processing in the cookie consent banner or Settings. AI features will be disabled.
• Choose which data AI can access: Configure data scope restrictions in Settings > AI Governance.
• Review AI activity: View all AI interactions and outputs in the AI Governance dashboard.
• Request deletion: Request deletion of AI interaction logs by contacting support@procure-labs.com.

10. Regulatory Compliance

We designed the platform's AI governance with the EU AI Act, Singapore PDPA, and GDPR Article 22 (automated decision-making) in mind. The platform does not make legally or significantly impactful decisions about individuals without human involvement. For further detail, see our Privacy Policy and Security page.