The National Appeals Chamber (KIO) ordered the exclusion of Exdrog from a road maintenance tender in Małopolska after discovering that the company’s explanation for its abnormally low bid was partly generated by artificial intelligence, which cited nonexistent tax documents. Competitors detected the AI “hallucinations” and appealed. KIO confirmed that Exdrog’s 280-page clarification contained false information derived from AI and ruled that the company failed to verify it, misleading the contracting authority. Although the Chamber deemed it an oversight rather than deliberate fraud, the offer was disqualified.

The case has sparked debate over the use of AI in public procurement. Industry experts, including Jan Styliński of the Polish Construction Employers’ Association, stress the urgent need for legal frameworks regulating AI-generated materials in tenders—defining authorship, verification duties, and acceptable use. Barbara Dzieciuchowicz of the National Chamber of Road Construction warns that using AI without validation may raise risks and costs instead of saving time. She suggests requiring bidders to disclose whether and how AI was used in documentation.

Exdrog’s president, Krystian Barczyk, denied knowingly using AI and said the company would decide on an appeal after receiving the official ruling. The incident serves as a warning for other firms: relying on AI shortcuts without human verification can lead to costly disqualifications.

(pb.pl)