Government contracts have grown increasingly complex over the last few years, which can make it difficult for government contractors (GovCons) to manage projects, grow buyer relationships, and renew contracts. Recently, Unanet released its 2024 GAUGE Report which discusses how GovCons can use innovative technology solutions to navigate the modern complexities of government contracts to win the right business. According to the report, over 69 percent of GovCon businesses are experiencing issues winning new contracts. Artificial intelligence (AI) has gained a real foothold in business development and marketing for its ability to streamline operational efficiency and compliance demands. By leveraging AI-powered insights, GovCons can balance efficiency and compliance to drive growth and profit amidst growing complexities and challenges.
In the report, Kim Koster, Unanet’s Vice President of Product Marketing and an expert in government contracting explained how AI can be a powerful tool for driving GovCon growth. “Many fear that AI technology will soon replace people,” Koster said. “This is not true—but people using AI will replace those who do not embrace AI. Though its full impact on our industry is yet to be seen, there is no doubt that AI will prove a valuable ally in navigating the pressures facing GovCons today.”
Download the 2024 GAUGE Report
To help GovCons navigate modern complexities, here are some ways AI can be used to balance efficiency and compliance.
Operational Efficiency
AI is most powerful when it’s used to help streamline repetitive tasks so employees can focus their energy on critical thinking tasks like building relationships with government buyers. “By leveraging the massive potential of AI to optimize day-to-day operations wherever possible, GovCon businesses can focus more on building and maintaining relationships—the lifeblood of our industry’s economy,” Koster said.
By integrating AI tools to support employees rather than replace them, GovCons will see significant growth and profit improvement. According to the Nielsen Norman Group, AI can increase employee productivity by 66 percent. While this number is impressive, the Nielsen Norman Group claims that the productivity gain from AI has the net gain potential of 47 years of natural productivity gains in the United States. This means that by using AI to streamline mundane tasks for employees, GovCon will see significant increases in profit and growth margins both short term and long term.
Compliance Demands
The cyber threat landscape is constantly evolving as threat actors leverage AI to make attacks against government agencies more frequent and sophisticated. As a result, compliance demands have also evolved to address the threats facing government agencies. To meet this demand, GovCons must leverage AI to meet compliance requirements to provide government agencies with the highest level of security.
GovCons can use AI to increase risk detection, draw compliance insights, streamline routine cybersecurity maintenance tasks, and reduce incident response times by 80 percent. By integrating AI, Govcons can better navigate compliance requirements and ensure that their software is kept up to date to meet agencies’ cybersecurity needs
When used correctly, AI can be a powerful driver for improving growth and profit amidst an ever-changing industry. By integrating AI tools into business operations, GovCons can balance efficiency and compliance to provide government agencies with the tools they need for success.
Want to learn more ways GovCons can use AI insights to balance efficiency and compliance? Download the 2024 Gauge Report here.