More competition:   As AI could make the tender process more efficient, it is likely to  lead to an influx of participants, thereby intensifying competition, especially for those average contenders in the midst.  It won’t be long before AI is used by procurement teams to sift through bid responses pinpointing strong tenders from the most prominent competitors and discerning the most advantageous pricing.  Average responses are likely to be quickly filtered.

Data Privacy & Protection: Using AI tools requires a dance with data. As we’ve seen with concerns raised globally, it’s a dance fraught with potential missteps. Bid submissions often encompass a broad range of proprietary business details. This can cover everything from financial data and pricing structures to what sets a business apart from its competitors. Crafting these submissions without diligent verification can, at times, result in the inclusion of outdated or incorrect details. Such oversights not only threaten the organisation’s image but can also have financial repercussions. Using AI in bid writing and in tender management can raise security issues if sensitive data isn’t well-protected. Governance is equally important, as the uninformed use of readily available AI tools might pose risks.

Authenticity Concerns: Over-reliance on AI has its pitfalls. A sea of similar, AI-generated responses might flood the bidding landscape, risking perceptions of inauthenticity and even potential disqualification. While AI can automate tasks and evolve over time, it lacks human creativity and intuition. This might lead to bids that, although accurate, lack strategic depth.

Cost Concerns: Implementing AI in bid writing and for tender management can be costly, especially for smaller firms. Expenses include updates to hardware and software, AI expertise, and training. This might put smaller firms at a disadvantage against resource-rich larger corporations.

Employee Morale Shifts: Introducing AI might affect employee motivation due to concerns over job security and role changes. There’s also a risk of over-reliance on AI, diminishing critical skills. Open communication and skills training can help mitigate these concerns. As the WEF report indicates, while 85 million roles could be at risk by 2025, 97 million new roles may emerge.

Data Dependency:  AI’s effectiveness is tethered to its algorithms and the quality of data. Without regular updates, its performance could plateau. Discrepancies in data or algorithms can also skew outcomes, leading to potential problems.

The Human Touch: Delving deeper, a bid isn’t just data and statistics. It’s an embodiment of an organisation’s soul. The essence of competitive tender processes involves understanding specific bidder organisations and their concrete plans for service delivery. An evaluator seeks insight into how value will be provided beyond just impressive answers. Ai cannot harness creative inputs across an organisation, it relies entirely on what has been written before.

At its heart, the tender process is designed to guide purchasers in making astute, value-driven decisions in procurement. Beyond just the price tag, purchasers weigh multiple non-price dimensions, such as the efficacy of a bidder’s projected service delivery framework; their methodologies for managing contracts, quality, and the environment; their strategies for resourcing and ensuring uninterrupted business; and their intentions to cultivate social value or community advantages intrinsic to the delivery locale. Evaluators, in scrutinizing a tender response, aren’t merely searching for remarkable answers or a display of a bidder’s overall expertise and comprehension. Rather, they’re keen on understanding the specific bidder entity and their precise service delivery blueprints: the exact initiatives they’re pitching and the methods they plan to employ to ensure the service’s goals are met and the best possible return on investment is realised.