AI's Role In Procurement: Some Suggestions On How To Respond To The New Way Buyers Buy
Artificial intelligence is changing how procurement teams evaluate suppliers and tender responses. Learn how professional services firms can adapt and remain competitive.
If you missed it, Albania recently appointed an AI chatbot to its Cabinet tasked with managing government procurement. Gimmick? Most likely. But, what it evidences is that Artificial Intelligence (AI) is no longer a distant concept in procurement. Indeed, our own Commonwealth Government of Australia is on record that it reserves the right to use AI in the evaluation of tender responses (see the BuyICT panel, that will be reopending next month - October, for an example).
So, what does this mean for law firms and other professional services providers? In this BD Tips Wednesday, I take a quick look under the bonnet.
The AI-Driven Buyer Journey
As mentioned, procurement teams are now using AI tools at every stage of the buying-cycle. Instead of manually sifting through supplier information, they use machine learning algorithms to:
Scan market intelligence: AI platforms compare vast datasets, from supplier profiles to past performance, in seconds.
Automate shortlisting: Buyers rely on natural language processing to evaluate RFP responses against tender criteria, with little room for ambiguity or fluff.
Score compliance and risk: AI checks certifications, insurance, ESG commitments and track records instantly; flagging gaps that once might have slipped through.
Predict value: Algorithms model cost savings, delivery times and potential risks to forecast outcomes.
The result? Buyers make faster, data-driven decisions and suppliers face a more competitive, less forgiving playing field.
How to Respond
AI in procurement doesn’t eliminate personal relationships, but it does mean suppliers must rethink how they present themselves:
Precision is critical: Responses must be structured, clear and directly aligned to evaluation criteria.
Compliance is non-negotiable: AI flags missing insurance certificates, expired licences or vague ESG statements. A single oversight could knock you out before you get to the human review stage.
Value storytelling evolves: Buyers still want to know how you add value; but case studies, proof points and measurable outcomes matter more than generic claims.
Strategies for Success
Structure for machines, write for humans: Use clear headings, concise language and responses aligned to the evaluation criteria. But, also make sure to tell a story that a person wants to read!
Invest in data-driven evidence: Replace “we are experienced” with “we delivered X project 3 weeks ahead of schedule, reducing client costs by 15%.” Procurement thrives on numbers, benchmarks and outcomes.
Build digital trust: Ensure your compliance documents, certifications, ESG policies and risk frameworks are up to date and easy to verify (Get in touch if you need help with this). Procurement AI systems are designed to detect gaps in governance.
Adapt your business development process: Traditional BD strategies - coffee meetings, networking and reputation, still matter but they must be complemented by digital readiness. Treat your online presence, panel registrations and proposal templates as assets optimised for AI review. In short, make sure you have a bid library that both AI procurement and human procurement like (again, get in touch if you need help with this)!
Looking Ahead
The procurement landscape is always evolving: from paper-based RFPs to online portals. Each shift has raised the bar for suppliers. This time, the bar is not just higher; it’s sharper, faster and less forgiving. The winners will be those firms that embrace AI as both a challenge and a tool. By structuring proposals for machines, demonstrating measurable value and maintaining flawless compliance, suppliers can not only keep up with how buyers buy today, but also stay ahead of tomorrow’s AI-driven procurement future.
And best of luck to the new Albanian Cabinet Minister!
Further Reading
Need Help With Your Business Development?
Get in touch if you want to talk about any of this. We also offer a very affordable BD Audit and Training package.
How Can We Win More Government Work?
Winning government contracts requires more than technical capability. Learn the five critical elements that improve your chances of securing government opportunities.
A cry for help I've heard a couple of times over the past few months is: "𝑯𝒐𝒘 𝒄𝒂𝒏 𝒘𝒆 𝒘𝒊𝒏 𝒎𝒐𝒓𝒆 𝒈𝒐𝒗𝒆𝒓𝒏𝒎𝒆𝒏𝒕 𝒘𝒐𝒓𝒌?". The answer is, there is no simple answer!
Having said that for this BD Tips Wednesday post I thought I would run a few [5] basic things you need to have in place if you want to stand a chance of winning more work from Government - whether that be Federal, State or local.
1. Understand the Procurement Process
First of all, you need to understand the procurement process that particular Government level, agency, department, Owned Corporation (GOC), etc has in place.
This extends beyond whether or not they have a panel in place (hint: most will), but also applies to matter level. For example, is there a monetary threshold over which they need to get more than one, three or five quotes?
In short, if you want to win more Government work, first of all learn how to play the game. You need to:
understand the procurement rules - is it a competitive bidding (RFP/RFT/RFQ) process or can it be a sole-source contracts?
register on the relevant Government tender websites.
get notifications of all relevant tenders being released (you can even pay for this service!).
know the compliance requirements - ISO? What are the minimum insurance levels (public liability / professional indemnity / cyber insurance)? Anti Money Laundering / Supply Chain / ESG compliant?
2. Develop a Strong Value Proposition
Next up, like all things, you need to have a strong value proposition.
Don't think that just because it is Government they are going to give you the work - they're not! Likewise, thinking just because you're a taxpayer means Government owes you something is a doomed to failure strategy!
Government, just like any other client you have, needs to know what you are offering over and above the competition. You need to be able to differentiate your offering from everyone else.
Here, you can focus on your cost efficiencies/value for money, innovation, social impact. These are differentiators Government rewards.
3. Have the right experience...
Again, Government doesn't owe you anything so don't go for work if you don't have at least some experience doing what you say you can do!
Here, you might say you don't have experience acting for Government directly so should you still go for the work? The answer is "possibly", as Government also likes experience acting against Government (provided you agree not to act against them once they become your paymaster 😁).
4. Build relationships
Government procurement rules means that building relationships with Government employees can be a little more tricky than with the private sector. However, at the end of the day, professional services remains a people-to-people business - it's built on a trusted relationship between buyer and seller. While it might be a little more complicated, that doesn't change just because you are dealing with Government employees.
As a result, make sure to:
attend all relevant industry events.
provide [free] training as a value add where it will be warmly received.
leverage off your existing Government connections.
understand who they key decision makers are!
become known as the 'go to' person for Government in your area of expertise.
5. Have a good pitch team!
Last of all, make sure you employ a good pitch team - either internally or outsourced - who understand how Government works and know how to respond to Government tenders. This is a specialist area.
Tip here. A good Government tender writer fully understands the 'D.N.A of a client acquisition' concept and can tailor a response to tick all of the relevant boxes!
Bringing it all together
So the next time you ask yourself how you can go about wining more Government work, check to see if you have ticked all five of the above boxes off.
Further Reading
Need Help With Your Business Development?
Get in touch if you want to talk about any of this. We also offer a very affordable BD Audit and Training package.
"Who is it for?"
Understanding your audience is critical to winning new work. Explore the D.N.A. model and learn how to communicate effectively with decision makers, advocates and naysayers.
Seth Godin wrote in 'This is Marketing':
"Who's it for?" It has a subtle but magic power, the ability to shift the product you make, the story you tell, and where you tell it. Once you're clear on "who's it for", then the doors begin to open for you.
The same is true here regardless of whether you are selling a product or a service. Only in the case of selling a service, the answer may not be straight forward. Because, in most cases involving complex/mature buyers of services, there are typically multiple layers of "Who's it for?".
In this BD Tips Wednesday post we take a very high-level look at what those layers might look like.
The D.N.A of a client acquisition
If you have been reading my posts for any length of time, you'll know by now that I LOVE a good acronym (I'm also partial to the odd emoji 😁).
This is no different in the case, so let me quickly walk you through the D.N.A aspects of a client acquisition so that you can implement this in your next client pursuit.
D stands for...
"D" stands for the "Decision Makers". These are also known as the "economic buyers" of your services. Bluntly, they pay the bills. The information you give to a Decision Maker needs to be concise, to the point and value driven.
N stands for...
"N" stands for the "Naysayers". These are also known as "procurement" 😁. Two things drive procurement: (1) compliance issues, and (2) cost savings. The Naysayers are not interested in the same message you are giving to the Decision Makers. In fact, if you do feed them the same message as you are giving to the Decision Makers, you'll likely not going to win the work. So make sure to tailor your messaging so that the Naysayers hear what they need to hear (i.e., you are happy to provide monthly reporting and volume discounts!).
A stands for...
"A" stands for "Advocates". Advocates are your client champions. They are the people on the inside trying to help you win the work. They don't need to be told why you are the best in town at what you do, they already know. What they need to hear is how they can convivence people within their organization to support your case. You need to be providing your Advocates with this messaging if you are going to stand any chance of winning the work!
Bringing it all together
Problems start to occur in client acquisition pursuits when the message you tailor is not focused on who the audience is ("Who's it for?"). This can become worse when you think there is only one buyer of your service - whether that be the Advocate or the Naysayer (the Decision Maker is very often left out of this messaging by professional services firms, which is a big mistake).
So the next time you set out on a client acquisition strategy, take a few minutes to write down on a piece of paper: "Who's it for?" and then apply this through the D.N.A lens.
Need Help With Your Business Development?
Get in touch if you want to talk about any of this. We also offer a very affordable BD Audit and Training package.
Answer These 3 Questions And You'll Super Charge Your Business Development Efforts
Business development becomes easier when you understand who makes decisions, what matters to them and how they buy. These three questions underpin every successful growth strategy.
Business development is really easy. All you need to be able to do is answer 3 simple questions:
Who makes the decision to buy?
What are their priorities?
How do they buy?
But, getting the answer(s) to those 3 simple questions isn't so easy. It takes time, planning, insight and an awful lot of legwork.
For this week's BD Tips Wednesday post I'll take a very high-level look at what this means...
Who makes the decision to buy?
More than 50% of General Counsel report directly to the...?
... Chief Financial Officer.
When you look at who makes the decision to buy, it is rarely the person giving you the instruction.
What are their priorities?
The priorities of the 'economic' buyer are rarely the same priorities as the person giving you the instruction. Make sure to canvas both if you want your fee paid!
How do they buy?
Hopefully you are lucky enough to have a client that doesn't use Request for Proposals and Tenders to buy your services.
Hopefully you have a client that still relies on relationships to buy your services.
But, don't depend on 'hope' - know. Ask the question.
Further Reading
Need Help With Your Business Development?
Get in touch if you want to talk about any of this. We also offer a very affordable BD Audit and Training package.