Tender Questions in Procurement - Are You Using AI Bid Writing?

AI Bid Writing Being Questioned in Procurement: What Bidders Need to Know

Artificial intelligence (AI) is becoming more prevalent across business operations. Most of us are using AI and quite often without even realising it! Some examples of AI that a typical business will use in general day to day include Microsoft Word and Grammarly, for example, as well as banking, security and emails. Technological innovations can of course also streamline business processes and outcomes in the context of public procurement, such as AI bid writing, bid software and templates.

Procurement teams across the public sector see AI bid writing as both an opportunity for increased competition, but also as a risk due to unreliable and inaccurate tender responses being submitted. As a result the UK Government has issued a Improving Transparency of AI use in Procurement Policy Note (PPN - 02/24) that provides guidance and best practice on how to manage the use of AI in public procurement, both from the perspective of contracting authorities and suppliers using AI bid writing tools.

In this article, we will summarise some of the key points from the PPN, provide copies of the AI bid writing questions we are seeing being asked in tenders as a result, and offer advice for bidders who intend to use AI in their tender submissions or service delivery.

What Is the AI Procurement PPN and Why Is It Important?

The AI Transparency in Procurement PPN is a document that sets out the Government's policy on a specific procurement issue, that being the increasing use of AI bid writing and also the use of AI in service delivery relating to public sector contracts.

What are the main implications of the PPN for suppliers?

The PPN acknowledges that suppliers may use AI tools to improve their bid writing process, or to provide AI-based products or services to the Government. It also recognises that there are potential benefits to suppliers using AI, such as increasing their efficiency, capacity, and competitiveness.

However, the PPN also highlights some of the challenges and risks that may arise from the use of AI by suppliers, such as:

• The possibility of inaccurate or misleading statements in AI-generated bid content, which may affect the credibility and validity of the tender responses.
• The use of confidential or sensitive information as training data for AI systems, which may breach data protection or security obligations.
• The lack of sufficient capacity and capability to fulfil the contract requirements, if the supplier relies too much on AI bid writing tools or services.
• The ethical and social implications of using AI in the delivery of public services, such as the potential impact on human rights, equality, and diversity.

Use of AI Bid Writing in Procurement: What Details Do Buyers Require?

As a result of this PPN, as professional bid writers, we are starting to see specific tender questions which openly ask bidders on their use of AI. Public sector bodies are ensuring that AI is used appropriately, and with due regard to risks and opportunities. Procurement teams will therefore ask if you have used AI in your bid submissions. They are doing this to establish the accuracy, robustness and credibility of suppliers’ tenders through the use of clarifications or requesting additional supporting documentation in the same way contracting authorities would approach any uncertainty or ambiguity in tenders.

• Disclosing their use of AI in the creation or delivery of their tender responses, and providing details on how they have used AI tools or services.
• Checking and verifying the accuracy and reliability of AI-generated content, and ensuring that it is relevant, appropriate, and consistent with the tender requirements.
• Not using confidential or sensitive information as training data for AI systems, unless it has been explicitly authorised by the contracting authority.

Exact Questions You Could Be Asked

• "Have you used AI or machine learning tools, including large language models, to assist in any part of your tender submission?"
• "Where Artificial Intelligence (AI) is likely to be used in the delivery of a service, you are required to declare this. This information will enable us to consider any additional due diligence or contractual amendments to manage the impact of AI as part of the service delivery."

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• AI Bid Writing Policy Development.

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Tips and Advice for Bid Writers using AI?

Based on the PPN and AI bid writing best practice, we have provided some tips below to ensure you avoid loosing out due to bad tender responses.

• Be transparent and honest about your use of AI in bid writing, and provide clear and comprehensive information on how you have used AI tools or services, and how they will benefit the contracting authority and the public.
• Ensure that your AI tools or services are aligned with the Government's values and principles, and respect the rights and interests of the users and stakeholders.
• Be careful and diligent in your use of AI in tenders and procurement, and ensure that your AI bid software tools and content is accurate, reliable, and secure, and that you have taken appropriate measures to mitigate any risks or errors.
• If using AI in bid writing, and ensure that you have the necessary skills and understand what it can and can't be used for.

AI Bid Writing Process

AI as a Tool for Bid Writing

AI is a helpful tool, not a replacement for bid writers. It can assist in writing bids but requires full control and management by humans.

Do not directly copy and paste from AI outputs. Always rewrite and adapt the content to ensure it aligns with your company’s tone and style.

Use AI to draft responses by providing clear, detailed prompts. Include specifics like project details, company qualifications, and requirements. AI can suggest ways to make your proposal stand out.

Tailor AI-generated content to fit the buyer's needs. Rewrite sections into your house style, adjust for local context, and ensure it aligns with the specific requirements of the project.

Convert AI bid writing responses into an active voice and ensure they are written persuasively. This helps in making the proposal more engaging and effective.

Quality Assurance and Bid Reviews using AI

Always thoroughly review and fact-check AI-generated content. AI can produce plausible but incorrect information, known as "hallucinations."

Use AI to review drafts for weaknesses, areas needing improvement, and potential inaccuracies. Ask AI to highlight sections that could be cut or require additional detail.

Perform both continued reviews, paragraph by paragraph, as well as a final bid review of the content to ensure it is coherent, accurate, and tailored to the specific tender. Adjust any remaining inconsistencies and refine the language as needed.

AI Bid Writing Data Privacy, Security and Confidentiality

Ensure you have fully protected any information you put into the AI technology you are using for bid writing. The AI technology used should not be trained on your bid content!