The Impact of Generative AI on Cost Savings in Bids and Proposals

Lohfeld Consulting sponsored an independent survey to evaluate the extent of cost savings that businesses have experienced using AI technology. The results show a varied perception of savings, ranging from minimal to substantial. This blog delves into these results to better understand the financial impact of generative AI in the bid and proposal profession.

Survey Results Breakdown

The survey asked respondents to quantify the cost savings they achieved using generative AI platforms for bids and proposals. The results were as follows:

  • 0-25% savings: 44% of respondents
  • 26-50% savings: 28% of respondents
  • 51-75% savings: 20% of respondents
  • More than 75% savings: 8% of respondents

As shown in these figures, more than half of the respondents reported significant savings ranging from 26% to more than 75%. This suggests that while the degree of savings can vary widely, the potential for reducing costs is substantial.

Factors Influencing Cost Savings

The variation in reported savings can be attributed to several factors, including:

  • Implementation and Integration: The extent to which the AI platform integrates seamlessly with existing systems can influence its effectiveness and cost savings.
  • Scale of Use: Due to economies of scale, larger organizations or those that handle a high volume of proposals might see more significant cost reductions.
  • Complexity of Bids: More complex bids might require more sophisticated AI features, potentially increasing the cost savings by reducing the time and labor involved.


The survey indicates that generative AI platforms hold considerable promise for cost savings in preparing bids and proposals, with most users experiencing notable financial benefits. The degree of savings varies, likely influenced by factors such as the system’s integration capability, the scale of its use, and the complexity of the bids. Organizations considering adopting such technologies should evaluate these factors to optimize their return on investment.

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By Brenda Crist, Vice President at Lohfeld Consulting Group, MPA, CPP APMP Fellow

Lohfeld Consulting Group has proven results specializing in helping companies create winning captures and proposals. As the premier capture and proposal services consulting firm focused exclusively on government markets, we provide expert assistance to government contractors in Capture Planning and Strategy, Proposal Management and Writing, Capture and Proposal Process and Infrastructure, and Training. In the last 3 years, we’ve supported over 550 proposals winning more than $170B for our clients—including the Top 10 government contractors. Lohfeld Consulting Group is your “go-to” capture and proposal source! Start winning by contacting us at and join us on LinkedInFacebook, and YouTube(TM).

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Brenda Crist