This study explores the transformative potential of artificial intelligence (AI) in public sector procurement, emphasizing efficiency, transparency, and regulatory compliance. By examining AI-driven innovations, the research highlights their ability to automate market analysis, optimize the preparation of technical specifications, and improve procurement process management while addressing legal and ethical considerations. A mixed-methods research approach was employed, incorporating quantitative and qualitative surveys, a detailed comparative analysis of international best practices, and an experimental “Centralized Procurement Support and Review Model”. Data collection included expert interviews, legal framework analysis, and practical tests comparing AI-supported and traditional procurement methods. The experimental findings indicate that AI integration in procurement reduces execution time by up to 50%, improves supplier selection accuracy by 25%, and strengthens compliance with procurement regulations and policies. Additionally, results from a targeted survey among procurement officers indicate a high level of readiness to adopt AI solutions, with 92% expressing interest in AI-assisted decision-making. The pilot project demonstrated a 20% reduction in administrative burden and significantly enhanced process transparency. Furthermore, practical tests revealed that AI-driven specification drafting could reduce preparation time from two hours to 30 minutes, significantly streamlining procurement operations. A comparative study of AI-based procurement solutions in the United Kingdom and Estonia suggests that the proposed model is tailored to Latvia’s regulatory environment, ensuring alignment with the European Union’s digital transformation objectives. Successful implementation of AI solutions in public procurement requires a practical deployment strategy, which includes enhancing employee qualifications, developing advanced data management systems, and effectively integrating regulatory requirements into procurement processes. Furthermore, this study emphasizes the importance of continuous monitoring and improvement of AI systems to ensure that procurement processes remain efficient, fair, and adaptable to evolving market dynamics and legal frameworks.