AI tender submission – the good, the bad, and the augmented

Artificial intelligence (AI) is rapidly transforming many industries, and the tender submission process is no exception.

Having a tender submission tool that will meticulously craft your bids, ensures every ‘i’ is dotted and every ‘t’ is crossed, while analysing market trends and competitors’ strategies with lightning speed sounds amazing, doesn’t it?

It’s a tantalising prospect for your company to gain a competitive edge. But, as with any revolution, there are two sides to this AI coin. It’s a complex dance between innovation and caution.

In this article, we will take a closer look at the advantages and disadvantages of using AI tender submissions.

(Make sure you read to the end, where we discuss some tips for your company to consider when using AI to improve your chances of winning tenders.)

Advantages of generating an AI tender submission

Your company can gain several advantages by using AI for tender submissions. These advantages can significantly improve your competitiveness and efficiency in the bidding process, ultimately increasing your chances of winning contracts and expanding your business opportunities.

Here are some key benefits for your business –

Time savings

AI can automate many of the repetitive tasks involved in tender submissions, such as extracting key information from the tender documents, generating draft responses, and checking for completeness and accuracy.

This can free up staff to focus on more strategic tasks, such as developing winning strategies and building relationships with buyers.

Consistency

AI ensures consistency in the content and formatting of tender submissions. This reduces the risk of errors or omissions in the bid documents and helps maintain a professional image.

Improved quality and accuracy

AI can help companies to improve the quality of their tender submissions by providing insights into the buyer’s requirements and suggesting improvements to the tender content. AI can also help to identify and eliminate errors or discrepancies in the tender submission.

Cost reduction

Automation through AI can lower the overall cost of preparing tender submissions by automating tasks and improving the quality of submissions.

This can lead to more wins, which can offset the cost of the AI technology.

Enhanced competitiveness

AI can analyse historical data, market trends, and competitor submissions to provide insights for crafting more competitive bids.

This helps your company to tailor its proposals to better match the needs and expectations of the contracting authority.

Personalisation

AI can assist in customising tender submissions by tailoring content to the specific requirements and preferences of the client or contracting authority.

Personalisation of tenders can increase the likelihood of winning contracts.

Risk assessment

AI can evaluate and assess the risks associated with participating in a particular tender.

This includes identifying legal, financial, and operational risks, allowing your company to make informed decisions about whether to bid and how to mitigate potential risks.

Scalability

Your company can use AI-powered tools to handle multiple tender submissions simultaneously, enabling you to pursue a larger number of opportunities without significantly increasing your workforce.

Strategic insights

AI can provide strategic insights by analysing data from previous bids and identifying trends in procurement processes.

This helps your company refine its bidding strategies over time.

Faster response to opportunities

AI accelerates the process of gathering and organising information for tender submissions.

This agility enables your company to respond quickly to emerging opportunities in the market.

Learning and improvement

AI systems can learn from past submissions and feedback, allowing your company to continuously improve its bid quality and effectiveness.

Accessibility

If you are a smaller company, AI can level the playing field, including startups and SMEs, by reducing the resource barriers to participating in tenders.

It allows you to compete more effectively with larger competitors.

Compliance of an AI tender submission

AI can help ensure that tender submissions adhere to all legal and regulatory requirements, reducing the risk of non-compliance.

The sum of these advantages of using AI in tender submissions – is an increased win rate.  High quality, tailored tender submissions that meet the specific requirements of the buyer!

Disadvantages of generating an AI tender submission

The advantages sound great, and solve so many problems with tender submissions? Don’t they?

But, there’s always a but.  Go in with your eyes wide open to ensure you consider the pitfalls and risks before using AI in your tender submission.  If you do, AI could be the solution that changes your business.

The disadvantages of using AI for tender submissions, include –

AI is new technology

AI is still a relatively new technology, and there is a lack of regulation and guidance on its use in tender submissions.

This means that your company needs to be careful when using AI, and should take steps to mitigate the risks involved.

Initial implementation costs

Implementing AI systems for tender submissions can be costly.

Your company may need to invest in AI software, hardware, and training for their employees. For small businesses or startups with limited budgets, this can be a significant barrier.

Data privacy and security concerns

Handling sensitive procurement data requires strict adherence to data privacy and security regulations.

Ensure your company’s AI systems are robustly protected against data breaches and unauthorised access.

Technical challenges

AI systems can be complex to set up and maintain. Your company may need specialised IT expertise to manage and troubleshoot these systems effectively.

Data quality issues

AI is still under development, and AI-generated text can be inaccurate or incomplete. This is especially true for complex tenders, which require a deep understanding of the buyer’s requirements.

On your side of the equation, if your input data is incomplete, outdated, or inaccurate, it can lead to flawed analysis and decision-making.

Lack of creativity and innovation

AI can help to automate the tender submission process, but it cannot replace human judgment.

These systems tend to generate content that is formulaic and lacks creativity or innovation.  Tender submissions that are too standardised may fail to stand out in competitive bidding processes.

Bias in AI algorithms

AI algorithms can inadvertently inherit biases from the data they are trained on, potentially leading to biased decision-making in tender submissions. This can have ethical and legal implications.

Limited contextual understanding

It’s a machine, after all.  AI may lack a deep understanding of the specific context or nuances of the tender, which can affect the quality of content generated or recommendations provided.

Overdependence on an AI tender submission

Overreliance on AI can lead to complacency among employees who may assume that the AI system will handle everything. This can reduce the development of human expertise and problem-solving skills.

Resistance to change

Some of your tender team may resist the introduction of AI into their workflow, fearing that it will replace their jobs or disrupt their established routines. Managing this resistance can be challenging.

Scalability challenges

As a company grows and submits tenders for a larger number of projects, the scalability of AI systems may become a concern. Ensuring that AI tools can handle increased workloads effectively is essential.

Regulatory compliance

Your company must ensure that its use of AI for tender submissions complies with all relevant regulatory and legal requirements. Non-compliance can result in penalties or damage to the company’s reputation.

Risk of disqualification

Some buyers may disqualify tenders that they believe have been generated using AI.

This is because buyers want to see that bidders have taken the time to understand their requirements and submit a high-quality proposal.

Customisation and adaptability

AI systems may not always adapt perfectly to the unique requirements of each tender.

Your company may need to invest time and effort in customising AI solutions for specific projects.

To address these disadvantages and challenges, companies should carefully plan and strategise their implementation of AI for tender submissions. They should also prioritise ethical considerations, data quality, and employee training to ensure that AI enhances their bidding process without compromising on quality or compliance.

How are companies using an AI tender submission?

Here are some examples of how AI is being used by our clients for tender submissions:

• A construction company is using AI to extract key information from tender documents and generate draft responses. This has saved the company a significant amount of time and has improved the quality of its tender submissions.
• A technology company is using AI to analyse the buyer’s requirements and suggest improvements to its tender content. This has helped the company to win more tenders and increase its revenue.
• A healthcare company is using AI to identify and eliminate errors in its tender submissions. This has helped the company to avoid disqualification and increase its chances of winning tenders.

If you are considering using AI for tender submissions, it is important to choose a solution that is tailored to your specific needs. There are a number of different AI-powered tender submission tools available, so compare different options before making a decision.