Dallas Becomes First Major Texas City to Implement AI in Procurement

Key Takeaways

The city of Dallas will collaborate with Hazel AI to improve its solicitation documents, becoming the first major Texas city to use AI in procurement.
This initiative is part of a broader reform in the Office of Procurement Services, projected to save $1 million by reducing staff costs.
The partnership aims to enhance competition, transparency, and accessibility for small and local businesses in the procurement process.

Dallas Partners with Hazel AI for Procurement Modernization

Dallas has announced a partnership with Hazel AI to improve the quality and consistency of its procurement solicitation documents, marking a significant milestone as the first major Texas city to implement artificial intelligence in this area. The initiative is part of a restructuring effort within the city’s Office of Procurement Services, which has identified $1 million in potential budget savings through staff cost reductions.

Juanita Ortiz, the director of procurement services for Dallas, stated that the collaboration with Hazel AI will lead to greater competition, transparency, and accessibility for small and local businesses. The aim is to create a more efficient and inclusive procurement process that benefits the city and its residents.

The growing trend of incorporating AI into municipal operations is evident across the United States. Cities like New York and San Francisco have already begun to adopt AI-driven solutions, with New York introducing an AI Action Plan for city employees and San Francisco planning to provide AI access to thousands of its workers. Additionally, a 2025 Granicus survey revealed that 40% of government employees are utilizing AI tools primarily for research and meeting summaries.

AI companies are increasingly targeting local government procurement processes. Companies such as Authorium, OpenGov, and Appian have launched AI products geared towards procurement functions in recent years. A Deloitte survey from 2024 indicated that 92% of chief procurement officers are considering the use of generative AI in their operations.

Steve Isaac, director of marketing for Procurated, highlighted that AI is transforming the public procurement landscape. In Dallas, the procurement office plans to utilize Hazel AI for various tasks, including drafting solicitations, identifying vendors, and ensuring compliance with legal requirements, while also promoting local and small businesses.

Founded in 2024, Hazel AI has already established contracts with the Tempe Union High School District in Arizona and the Naval Air Warfare Center. This partnership will enable Dallas to enhance its procurement processes, aiming for smarter, faster, and more inclusive outcomes while fostering growth and competition among local businesses.

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