The verdict in three sentences
A profitable AI bid writing assistant invents nothing: it retrieves your best past answers and adapts them to the tender's evaluation criteria. Success depends on the quality of your bid library (200 to 500 indexed responses) and on mandatory human review, far more than on the choice of model. In London, budget a 2026 ballpark of 13,000 to 30,000 GBP ex VAT and 8 to 12 weeks for a 40 to 60 % reduction in writing time.
What the tool actually does, and what it does not
A bid manager at a London professional services firm knows the routine: every public tender on Find a Tender or Contracts Finder, and every private RFP, demands 30 to 80 pages of quality responses. The team rewrites the methodology, social value statement, risk management and mobilisation plan for the tenth time. A RAG (retrieval augmented generation) architecture indexes your winning bids, CVs, case studies and certifications, then proposes a sourced draft for each question: every paragraph links back to the original document.
The tool does not replace the bid/no bid decision, pricing or win themes. It removes the copy, paste and rephrase work, which often accounts for more than half the hours spent.
| Component | Role | Share of budget (estimate) |
|---|---|---|
| Past bid clean-up and import | Deduplicate, split by question, tag won/lost | 20 to 25 % |
| Vector indexing (RAG) | Find relevant passages per question | 15 to 20 % |
| ITT and specification parsing | Extract questions, weightings, word limits | 10 to 15 % |
| Sourced draft generation | Draft per question with citations | 15 to 20 % |
| Review interface and Word export | Approve, edit, assemble the response | 15 to 20 % |
| Security, UK/EU hosting, audit logs | Data kept out of public model training | 10 to 15 % |
What it costs in London in 2026
Figures below are 2026 market ballparks for a services firm answering 40 to 120 tenders a year.
| Option | Upfront cost | Recurring cost | Main limit |
|---|---|---|---|
| General AI assistant licences | 0 GBP | 20 to 35 GBP per user per month | No memory of your bids, leak risk if misconfigured |
| Proposal management SaaS | 2,000 to 5,000 GBP setup | 400 to 1,800 GBP per month | Content library maintained by hand |
| Custom RAG, narrow scope | 13,000 to 19,000 GBP ex VAT | 250 to 700 GBP per month (hosting, API) | One type of contract only |
| Custom RAG, full scope | 21,000 to 30,000 GBP ex VAT | 500 to 1,300 GBP per month | Needs 300 clean bids minimum |
| Freelance bid writer | 0 GBP | 400 to 650 GBP per day | No knowledge capitalised |
The 8 to 12 weeks usually break down as 2 to 3 weeks of content clean-up, 3 to 4 weeks of build, 2 weeks of testing on live tenders and 1 to 2 weeks of tuning. At Kolonell, this kind of tool sits within our custom web applications and AI practice: the amount is set in the quote based on bid volume and integrations.
Red flags to check before signing
Three issues sink these projects. First, confidentiality: your bids contain prices, CVs and know-how. Require UK or EU hosting, API model access with no reuse for training, and query logging, which also helps with UK GDPR. Second, source quality: indexing 500 bids of which half lost produces weak drafts. Tag won/lost and record the quality score when the buyer shares it. Third, adoption: if the Word export ignores your template, the team will be back to copy and paste within a month.
Mini case study
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Sarah, head of bids at a 220-person IT consultancy in London, answers 70 tenders a year. Each response takes 4 days of writing at a loaded cost of 480 GBP per day: 70 x 4 x 480 = 134,400 GBP a year. After a 24,000 GBP RAG project plus 7,800 GBP a year of hosting and API, writing time drops 50 %: 2 days per bid, saving 67,200 GBP. Net first-year gain: 67,200 minus 31,800 = 35,400 GBP, payback in about 5 months. Sarah uses the freed days to bid on 15 more opportunities.
FAQ
Can the AI answer a tender on its own?
No. It produces sourced drafts per question that the team reviews and adapts. In well-run projects, 40 to 60 % of the final text comes from the draft, the rest stays human.
How many past bids do we need to start?
At least 150 to 200 clean responses give usable results. Above 300 bids tagged won/lost, draft relevance improves markedly.
Is our data used to train public models?
Not with the right architecture: API access with a no-training clause and an encrypted vector store hosted in the UK or EU. Allow 10 to 15 % of the budget for this security layer.
How soon can we produce a first bid with the tool?
Typically 6 to 8 weeks after kick-off, on a live tender during testing. Full production follows between weeks 8 and 12.
Off-the-shelf proposal software or a custom build?
A SaaS at 400 to 1,800 GBP a month fits teams under 30 tenders a year. Above that, or for highly technical contracts, a custom build makes better use of your own bid history.
Let's scope your project. Tell us your tender volume and how many past bids to import, and we will define the scope and an 8 to 12 week plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.