The process of securing government contracts traditionally involves procurement specialists spending weeks analyzing databases and documents under tight deadlines. However, this is changing rapidly with the integration of artificial intelligence (AI), which can reduce proposal writing time by up to 70%, according to Joe Schurman of PwC, a firm investing $1 billion into expanding AI offerings for aerospace and defense. AI tools streamline the entire contracting process, from finding opportunities to drafting proposals compliant with government regulations. PwC has developed AI solutions tailored for the aerospace and defense sectors, with a focus on proposal writing. These advanced AI systems assist companies in identifying relevant contracts and managing complex Requests for Proposals (RFPs) efficiently. In industries like space, AI helps companies focus on relevant contracts, thus saving substantial time. Despite these advancements, human expertise remains essential. AI is viewed as an "acceleration tool, " allowing humans to focus on strategic parts of proposals.

Data security compliance is a significant challenge, with platforms like Microsoft Azure OpenAI authorized to handle sensitive Department of Defense (DoD) data. AI has garnered venture capital interest, with companies like AutogenAI receiving substantial funding. The military, including the U. S. Space Force, is cautiously integrating AI into procurement processes. AI also aids companies like Aalyria in aligning proposals with agency-specific jargon. While concrete data on AI-assisted proposal success is still forthcoming, early feedback is promising. The ongoing evolution of AI necessitates human oversight to address potential errors like AI "hallucinations. " Looking forward, the relationship between AI and human judgment will remain crucial in government contracting.