By Kim Koster, Vice President of Industry Marketing at Unanet
Working with government contracts can be tough. Meeting all the rules and keeping your business running smoothly is a big challenge. According to the 2024 GAUGE Report, nearly a quarter of contractors spend over 40 hours each month on compliance tasks. With new rules like Cybersecurity Maturity Model Certification (CMMC) 2.0 and Environmental, Social and Governance (ESG) requirements, these tasks will only get harder.
While compliance can seem overwhelming, artificial intelligence is helping many GovCons find a better way. Companies can use AI tools to oversee repetitive tasks and spot risks early.
Why Compliance Matters More Than Ever
Compliance means following the rules, but it also protects your business. Failing to meet the rules can lead to fines, lost contracts or damage to your reputation. According to the GAUGE Report 37 percent of GovCons surveyed are using — or looking to use — AI for compliance.
New rules will keep coming. Adopting new tools, like AI, can turn compliance into a strength rather than a burden.
How AI Helps Contractors Manage Compliance
AI can make it easier for contractors to handle the pains of compliance. It helps businesses work faster, make fewer mistakes and stay up to date with the latest rules.
Here’s how AI makes a difference:
Automating Repetitive Tasks
Many compliance tasks take a lot of time and are the same each time. Checking documents, finding required clauses and entering data are just a few. AI tools can handle these jobs quickly.
AI software can scan contracts in seconds to check for errors or missing information. It can also enter data automatically, making sure everything is accurate and up to date. This gives your team more time to focus on important work.
Keeping an Eye on Compliance in Real Time
Old ways of managing compliance rely on audits and manual checks, which can overlook mistakes. AI offers a better way by watching data in real-time and sending alerts when something looks wrong.
AI tools can spot unusual patterns in data, like billing errors or unauthorized changes to a project. When an issue pops up, AI alerts your team right away, so they can fix it before it becomes a bigger problem.
Preparing for Risks Ahead of Time
AI helps GovCons find risks before they turn into problems. Predictive tools use past data and current trends to see where things might go wrong.
If AI sees a pattern, like late invoices, your team can look into it early and fix the cause. This proactive approach means fewer surprises and helps your business run more smoothly.
Steps to Start Using AI for Compliance
If you’re thinking about using AI, start with a plan. The GAUGE Report’s AI Maturity Model can help you see where your firm stands and what to do next.
Consider these steps as you look to implement AI:
- Focus on time-consuming tasks: Find the compliance tasks that take the most time. Start with places where automation can help the most, like document reviews or data checks.
- Build knowledge in your team: Train your team how AI tools work and how they can help. This could mean hiring new talent or training current employees.
- Prepare your data: Make sure your data is clean, organized and easy to access. This may involve upgrading your data systems.
- Start small and build up: Begin with a small project that uses AI to improve one compliance process. Learn from this, then expand to other areas.
- Review and improve: Check often to see how well your AI tools are working. Make changes as needed to get the best results.
Looking Ahead: Using AI to Stay Compliant
Using AI can help you prepare for the future. AI helps GovCons follow today’s rules and get ready for new ones. Companies using AI become more flexible and efficient.
Some areas where Unanet is exploring the use of AI include:
- Contract ingestion and clause analysis for flow down and reporting
- Pursuit guidance and targeting
- Proposal generation and iteration
- Conversational assistant
- Automated data analysis for key project and finance milestones
AI makes routine tasks easier, helps with real-time monitoring, and supports proactive strategies. Contractors who use AI sooner will be better prepared to win contracts and stay ahead.
Compliance is always changing, and contractors need better ways to keep up. AI provides tools to automate tasks, watch data in real-time and find risks early. With AI, GovCons can focus on what they do best — delivering quality services.
Now is the time to explore how AI can help your compliance efforts. Embracing AI could turn a challenge into an opportunity. Learn more about how to do that by downloading the entire 2024 GAUGE Report.
