Here’s how the conversation went, right down to the cost savings
By Julia Tentzerakis, MBA
OpenAI.com launched Chat GPT3 just over a week ago and already has over one million new users. In fact, when I tried to login over the past two days, the system was intermittently down due to overwhelming traffic volumes. I can understand why, it is a powerful tool, albeit with limitations, but will clearly be a time-saver, and a game-changer for business writers—forever more.
Chat GPT3 can be viewed as a threat to Proposal Managers and Writers, however I believe the best approach is to embrace it. The technology is here, it is only going to get smarter, and those who know how to leverage it will save their companies time and money. Further, if Proposal Managers can complete bids faster using GPT3, they will be able to respond to more bids and thus potentially provide businesses an opportunity to grow revenues more rapidly. Based on this information, I believe it is prudent for companies to explore the cost/benefit analysis of incorporating Chat GPT3 into their proposal management processes.
THE CONVERSATION
Me: How will Chat GPT affect the Proposal Management industry?
Chat-GPT: Chat-GPT has the potential to revolutionize the Proposal Management industry by streamlining the process of creating and managing complex proposals. Through the use of artificial intelligence and natural language processing, Chat-GPT can reduce the time spent on manual data entry and formatting. Additionally, Chat-GPT’s ability to automate the process of creating and managing proposals can help to eliminate the need for manual reviews, which can significantly reduce the time it takes to get a proposal approved. These improvements can enable businesses to respond to opportunities faster, improving their chances of success.
Are any businesses using Chat GPT now?
Yes, there are several businesses already using Chat-GPT for proposal management. These include companies in the banking, finance, healthcare, construction, and engineering sectors. Additionally, several government entities have adopted Chat-GPT for their proposal management needs.
Can you advise which companies, by name, are using Chat GPT for proposal management?
The following companies are using Chat-GPT for proposal management: Bank of America, Wells Fargo, Pfizer, JLL, Costain Group, Mace Group, Leidos, US Army Corps of Engineers, National Institutes of Health, and Centers for Disease Control and Prevention.
(Me: Note to readers, OpenAI.com’s website indicates, “Our default models’ training data cuts off in 2021, so they may not have knowledge of current events.” Therefore, many more companies could be integrating Chat-GPT into their Proposal Management processes as of today.)
How can I keep my job as a proposal manager, now that Chat GPT3 is here?
The most important thing you can do to keep your job as a proposal manager is to stay up-to-date on the latest technology and trends in the industry. Make sure you understand the features and capabilities of Chat GPT and how it can be used to streamline and improve the proposal process. Additionally, look for ways to use Chat GPT to develop more efficient and effective proposals. Finally, demonstrate your knowledge of the technology and your commitment to using it to your employer, so they can see the value you bring to the team.
(Me: Great answer. I agree, despite Chat GPT’s obvious bias.)
How many hours of a Proposal Manager’s time would Chat GPT save a company?
The amount of time saved by a Proposal Manager using Chat GPT will depend on the specific features and services you require. However, typically, it is estimated that a Proposal Manager using Chat GPT can save up to 10 hours of time per RFP response.
How long does a Proposal Manager in the tech industry typically spend on managing, writing and editing a 100-page RFP response proposal, when not assisted by AI?
The amount of time a Proposal Manager in the tech industry typically spends on managing, writing and editing a 100-page RFP response proposal without the assistance of AI can vary significantly depending on the complexity of the project. However, typically, it is estimated that a Proposal Manager can spend up to 40 hours on such a project.
How much would Chat GPT cost for a company to create a 100-page proposal that answers 200 questions?
The cost of Chat GPT for a company to create a 100-page proposal that answers 200 questions will depend on the specific features and services you require. However, typically, businesses will pay a subscription fee of around $1000 per month for the use of Chat GPT. This fee may be lower or higher depending on the specific features and services you require.
How will Proposal Managers and Proposal Writers continue to provide value to companies, now that Chat GPT3 is available?
Proposal Managers and Proposal Writers are still essential to the success of companies, even with the introduction of Chat GPT. Proposal Managers and Proposal Writers can still provide value to companies by leveraging their expertise to make sure that the proposals created using the technology are of the highest quality. Additionally, their experience and knowledge can be used to customize the software to best meet the needs of the company. Finally, Proposal Managers and Proposal Writers can use their skills to develop more efficient and effective proposal processes for the company.
TL;DR – An Estimated Cost Savings Analysis
Based on the above dialogue with Chat GPT, which obviously includes a number of assumptions on the bid details, and subscription usage limitations, here is a quick cost analysis:
Time savings: Chat GPT states it can save a Proposal Managers 10 hours on each typical, 100-page or 40-hour bid response, thus cutting the time by 25%.
Financial savings: According to comparably.com, the average Proposal Manager salary is $104,000/year, or $8,666/month. Thus, if Chat GPT saves a Proposal Manager 25% of their time, this would be $2,166/month in cost savings.
- Gross monthly savings (reduction in a single Proposal Manager cost): $2,166
- Cost of GPT-3 monthly subscription fee: $1,000
- Net Savings: $1,166/month per Proposal Manager
Of course, this is likely an unreliable estimate as there are several unknown variables such as how much the subscription covers. However, in general terms, after my own experience experimenting in Chat GPT’s free playground, it is clear that it would be a time saver. Just how much it will save would require further research, but I believe it is research worth doing for all businesses utilizing proposal management services.
Next Steps for Proposal Management Offices
The best approach for Proposal Managers and Writers is to learn the technology (it’s easy!) and help their companies investigate a cost-benefit analysis of switching database platforms, and related bid management software to a Chat GPT model.
I’d love your feedback
Is your company using Chat-GPT? How do you see the service rolling out in your industry? What steps are you taking to incorporate AI into your Proposal Management process?