AI adoption rises as proposal teams fight economic pressures
Research conducted by AutogenAI has revealed that economic pressures are prompting businesses to see artificial intelligence (AI) as a necessary tool for survival, with workers increasingly seeking AI solutions to help them fulfil their roles amid rising demands.
Pressures on proposals teams
The report is based on a survey of 511 professionals involved in request for proposal (RFP) processes across the United Kingdom, United States, and Australia. The findings highlight that teams tasked with securing new contracts are among those experiencing the greatest strains resulting from wider market conditions.
The research indicates that 48% of respondents point to client budget limitations as the predominant external pressure. Increased industry competition is cited by 45%, while 39% of respondents identify broader economic uncertainty as a key concern impacting their work.
These pressures are manifesting sharply for those in proposal writing and bidding functions. According to the survey, 73% report that shortened turnaround times are a major challenge, while 75% state that RFPs have grown more complex over the past three years, particularly in terms of compliance checks and the scale of collaboration required across different organisational units.
One survey participant elaborated on the challenges faced, noting, "Inflation and keeping costs accurate are major concerns - making quotes is hard because prices just go up before bids are completed and finalized."
AI adoption amid mounting demands
AutogenAI's Co-founder and Deputy Global CEO, Raj Kaur Khaira, commented on the implications for the sector:
Pressure is mounting for proposal teams across industries. But that's also where the biggest opportunity lies. With AutogenAI, we're seeing professionals spend their time savings on crafting more competitive, higher-quality bids. They're not just submitting more proposals - they're increasing their win rates as well.
The adoption of AI technology is emerging as a solution for proposal professionals contending with these heightened demands. The research suggests that, in a context where the volume and complexity of proposals continue to grow, AI has the potential to enable teams to manage their workloads without compromising the calibre of their submissions or risking staff burnout.
AI-linked gains in revenue
Additional analysis by MH&A examined the performance of organisations using AI tools in their proposal processes, comparing them with counterparts not using such technology. The data demonstrates that AI users are outperforming non-users with respect to revenue growth across several sectors.
According to the study, in the construction sector, organisations employing AutogenAI reported an average revenue growth of 11.2%, while non-users experienced a contraction of 4.8%. The health and human services sector recorded a similar pattern, with AI users achieving a 15.7% increase compared to a 2.9% rise for non-users. In government outsourcing, AutogenAI adopters reported a 10.4% revenue growth, while non-users recorded a decrease of 19.3%. Across all sectors represented in the report, the average revenue growth among AI users stood at 12.4%, contrasted with a 7.1% average decline among non-users.
The findings suggest that AI tools are assisting businesses in mitigating the effects of external market pressures, supporting bid teams to generate higher-quality outputs at scale, and contributing to improved commercial outcomes.
Profile of survey respondents
The research covered professionals from a range of industries, including construction and infrastructure, transportation and supply chain, professional and business services, energy and utilities, and technology and IT. All survey participants are actively involved in writing proposals, providing them with direct insight into the evolving challenges and requirements in bid preparation and submission.
