To accelerate AI adoption, contractors should begin leveraging resources and reference materials to enhance their understanding and implementation of AI technologies.
elizabeth lucas
In today's dynamic business culture, artificial intelligence is an agent of change, with every technology giant (Google, Meta, Amazon, Microsoft), the White House, the Federal Trade Commission, and Congress involved in it. AI is gaining attention from both the business community to improve productivity and governments for regulatory reasons.
This overlooks another aspect of AI’s potential: its ability to positively impact the business side of government operations. With one in every ten dollars of federal government spending going to third-party vendors, the Government Contracting (GovCon) industry is at the forefront of leveraging the capabilities of AI to increase competitiveness. AI increases efficiency, productivity, and effectiveness, helping companies secure more business.
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Over 60% of executives believe AI will improve productivity, and government contractors and consultancies are at the forefront of this technological transformation. Even the State Department has spoken out about the need to implement generative AI and conduct market research on using emerging technologies to write contracts. The state government's outlook is that AI will not only reduce costs, manual labor, and potential for error, but will also improve decision-making and lead to better contracting outcomes.
Aeyon LLC, a management consulting firm with deep expertise in the Department of Defense and related civilian agencies, will provide AI services to the Department of Defense's Joint Artificial Intelligence Center (JAIC) to enhance various business operations through 2027 was one of the winners chosen for the award. Other integration examples include Serco, a multi-billion dollar public services company, deploying AI for knowledge management and collaboration. While leveraging AI for these purposes, GovCon companies should strive to emphasize the critical role of transparency to strengthen overall trust.
Disruption in the AI market: What about transparency and trust?
Amid market uncertainty and inquiries about the impact of AI in various sectors, pioneering early adopters in the GovCon space are emerging as shining examples of progress. This is particularly noteworthy given that the public sector is responsible for managing highly sensitive and classified information and requires significant financial resources. However, according to KPMG's 2023 Global Survey on Trust in Artificial Intelligence, 61% of respondents are wary of trusting AI. This spans a variety of industries, but adopters in the GovCon space are using these tools to lead the way and set guidelines while working with sensitive information.
In this industry, transparency and trust are paramount regardless of the technology solution. Because transparency and trust promote accountability, reduce safety concerns, enable open communication, and maintain regulatory compliance. In a competitive environment, choosing an AI solution that prioritizes transparency and trust can provide significant business benefits as well as security.
What's next?
As technology adoption proliferates, expectations for companies to respond quickly to procurement opportunities are increasing, and this will permeate the government contracting space as well. Deploying AI provides a competitive advantage by allowing organizations to respond to more bids within the allotted time period. As AI becomes more pervasive, response time may shorten, requiring federal contractors to adapt and respond within tighter deadlines.
Just as computers revolutionized the way documents are created and processed compared to typewriters, AI will bring similar advances to the procurement process. AI will also serve as a democratizing tool, leveling the playing field for businesses of all sizes. By automating mundane and repetitive tasks, AI frees procurement professionals to focus on strategic, value-added activities. This allows small businesses to compete more effectively with established large companies.
A new trend is emerging for consultancies in government procurement to implement AI, making the adoption of these technologies a key factor in remaining competitive. As early adopters, government contractors are leaning into the increased speed, accuracy, and efficiency that AI technology provides to deliver more timely recommendations.
To accelerate AI adoption, government contractors should begin leveraging available resources and reference materials to enhance their understanding and implementation of AI technologies. When government contractors proactively adopt AI, they foster innovation, improve efficiency, and become more competitive in the marketplace.
elizabeth lucas I'm an American CEO. AutogenAI.
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