Sep 2024 - Artificial Intelligence (AI)

After consulting with several companies, it’s clear that the use of Artificial Intelligence (AI) in business development differs significantly between service-based and product-based organizations.

In service-based companies, AI tools are primarily integrated into Customer Relationship Management (CRM) systems, mainly for customer or market analysis. These tools offer little to no operational functionality for tasks like solution development, comparative analysis, or capture management. In some instances where operational functionality is provided, AI is often limited to simple add-on features, such as keyword searches, creating compliance checklists, or generating basic proposal content.

On the other hand, product-based companies—especially those in the tech sector—take a more strategic approach to AI integration. They utilize AI tools throughout the entire business development process, including capture management. These tools handle more complex tasks such as requirement analysis, solution development, evaluating various options, and performing detailed cost assessments. As a result, AI-driven solutions in these companies tend to be more comprehensive and data-driven and proposals are more persuasive.

A significant challenge for service-based companies is their limited understanding of AI’s full potential. This gap is often caused by a number of things including a lack of internal expertise, insufficient investment in AI training, and a reliance on traditional business practices that don’t prioritize technological innovation. Many of these companies also depend on third-party vendors for AI solutions, limiting their direct interaction with the technology. Consequently, they overlook the potential of AI to go beyond simple tasks such as market analysis or proposal generation, missing out on opportunities to utilize AI for optimizing operations.

Service-based companies’ limited understanding of AI often leads to the underutilization of tools, unrealistic expectations about what AI can achieve, and ultimately, poor returns on investment. Without a clearer vision of AI’s potential, service-based companies risk falling behind competitors who are using AI more effectively to drive growth and innovation in business development.