The use of AI in tendering has increased, but so has the burden of proof

AI has made it easier to write a compliant tender response than ever before. Organisations that wouldn’t have responded previously, are now finding themselves bidding regularly for interesting opportunities. But this comes at a price.

My observation: With the increasing volume of bids, procurement teams around the country are now wading through AI generated bids that are almost identical, highly verbose, and without substance. In addition, information security management systems are being put to the test, with increasing amounts of data being fed into AI models that host data outside Australia.

So what are they doing about it?

They’re setting tighter word limits. If longer answers aren’t better answers, the easy fix is to cap the length. We’re seeing a lot more strict word counts.

They’re asking for real proof, because they want to see that you do what you say, in real life. A templated policy isn’t enough anymore. We’re seeing more of these evidence requirements, and they go further than they used to.

They’re leaning on outside checks, so expect to see more certifications and third-party tools, like CM3 for checking systems compliance or pre-requisite requirements like Fair Jobs Code Pre-Assessment. AI can’t manufacture those.

Procurement teams are also writing AI rules into the tender documents. To me, this is the biggest change. Some tenders now spell out how you can and can’t use AI to write your response, along with what information from the tender you’re allowed to put into an AI tool. We’ve even seen requirements for an AI register, which is a list showing where you used AI and how much.

The big questions

Two things aren’t clear to me yet.

If the use of AI in tendering is prohibited by procurement, how do they intend to police such a restriction without creating false positives?

If substance backed by evidence is the key differentiator in a market filled with generic content, is it actually easier for new players to compete? Or are the real barriers to competition getting harder to overcome?

What you can do right now

Here’s how I’d think about it:

• Read the tender conditions first. Check for AI rules before you start writing.
• Find out what you’re allowed to put into an AI tool and where that tool stores it.
• Jot down where and how you used AI. If a tender asks for a register, you’ll be ready.
• Build up your proof, e.g., certifications, real examples and real results.
• Use AI to speed things up but not to replace your thinking.

My prediction: within a few years, the best-written bid won’t win. The best-proven one will.

If you’d like a second pair of eyes on your bid process, we’re easy to find. Just get in touch.