1.

How GenAI can solve the core problem of automating RFP response process
2. Recommended extent of automation– lean AI Assistant type solution to elaborate platform for E2E
automation
3. How the business/geo/product level nuances (Product details, R&C requirements, knowledge
repository used, existing level of automation) and different client requirements (specific to every RFP)
will be addressed by this solution
4. Build Vs Buy decision (detailed justification of the decision)
a. Resourcing and cost model if it’s a build proposal.
b. How comparison and recommendation from AI powered existing market platforms?
5. Scope of the solution (which geographies and products to be in scope and prioritization for the same)
6. Roadmap/ Delivery timeline aligned to the scope setting up right expectations with the leadership.
7. Commercial analysis of the proposal
8. Support required from the business teams.
9. Immediate next steps
10. Any sample GenAI prompts, mockup screens will greatly help visualize the solution (Optional)

RFP ---> AI assistant ---> summarize --->

Model training on all past RFP proposal with wins, losses, etc data, uplo
 core problem of automating RFP process :-
platform for E2E Biased response
hallucination
sending incorrect response
fic to every RFP) can’t respond to a different RFP

GenAi can solve it by

ation for the same) continuous learning
the leadership. Improving the output
adapting to new standards

n (Optional)

th wins, losses, etc data, upload winning proposal also in loss cases
https://www.linkedin.com/pulse/exploring-generative-ai-pricing-detailed-breakdown-pradeep-patel-ted

https://www.linkedin.com/pulse/ai-rfp-generative-comes-sourcing-peter-bonney/

https://www.explainerds.net/navigating-the-ai-frontier-wwts-journey-into-generative-ai/

https://itrexgroup.com/blog/calculating-the-cost-of-generative-ai/

https://scaleupally.io/blog/cost-to-build-generative-ai/
breakdown-pradeep-patel-tedgf/

-generative-ai/
Advantage of Generative AI tool for RFP
Utilizing generative AI RFP templates brings a wealth of advantages to small procurement teams. First and foremost, AI-gener
adaptability, enabling teams to create RFPs tailored to their specific needs, rather than being confined to generic vendor-prod
produced templates allows for a more unbiased and comprehensive evaluation of potential suppliers.

Additionally, generative AI can significantly decrease the time and effort required to develop RFPs, leading to considerable cos
resources. The automation of RFP creation also improves the overall quality and consistency of these documents, as AI model
maintain a uniform structure throughout. As a result, procurement teams can enjoy a more streamlined and effective process
vendor relationships.

Steps to Implement AI RFP Template Generation

Implementing generative AI for RFP template generation involves a series of steps, each crucial to the success of the initiative.
essential, as it should be capable of meeting the unique needs and requirements of the procurement team. Research and com
suitable solution.

Next, training and fine-tuning the AI model with relevant data, including industry-specific terminology, RFP best practices, and
generated templates are accurate and useful. Once the model is properly trained, it must be integrated into the procurement
the AI-generated RFP templates seamlessly.
Days Process step Resources involved Allocation Pricing ($)
Consultant 100% 300
2 Team briefing and kick off/go no-go Decision Lead 50% 400
SME 50% 400
3 First draft complete Consultant 100% 300
Consultant 100% 300
6 SME inputs and review
SME 50% 400
1 Tidy up and re-circulate Consultant 100% 300
Consultant 100% 300
3 Final review Lead 25% 400
SME 25% 400
2 Response Design Designer 100% 200
3 Compliance review R&C Expert 50% 80
2 Compliance comments addressed Consultant 100% 300
1 Submit Consultant 20% 300
Total Cost
Hours Cost ($)
8 4800
8 3200
8 3200
8 7200
8 14400
8 9600
8 2400
8 7200
8 2400
8 2400
8 3200
8 960
8 4800
8 480
$ 66,240.00
 Activity Sub-activity Week 1 Week 2
Foundation model POC
Foundation
model selection Foundation Model result analysis
Foundation model selected
Hardware specification finalization
Hardware
Procurement Raising PO for hardware
Hardware received
Collecting all past RFPs
Data Geo wise R&C requirements gathering
Preparation Collecting Client provided information and questionnaire
Data Cleansing
Hardware setup
Training the model with company data
Development Finetuning the model
Interface development
Integration the model with interface
Preparing test cases
Integration Testing
Testing
System Testing
UAT Testing
Getting approval from stakeholder
Deployment
Deploying the solution in production
 Solution Timeline
Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12
Week 13 Week 14 Week 15 Week 16 Week 17 Week 18
OpenAI’s GPT-4 Turbo, one of the most sophisticated tools on the market, charges $0.01 per 1,000 tokens for input text and $

However, the cost of the generative AI Sales GPT assistant, which currently totals $50 per user per month, could give you a ge

Integrating your corporate software with Gen AI solutions over APIs and retraining models on your data. To reduce the cost of
implementation, you could eliminate the intermediary SaaS tools, merging your apps directly with commercial Gen AI solution
level. For instance, if you’re looking to supercharge your customer support chatbot with Gen AI capabilities, you can sync it wi
OpenAI’s models—e.g., GPT-3.5 or GPT-4—using the OpenAI API. Next, you need to prepare your data for machine learning, u
data to OpenAI, and manage the fine-tuning process using the OpenAI CLI tool and Open AI Python Library. While fine-tuning
you’ll be charged $0,008 per 1,000 tokens (GPT-3.5). Once your model goes into production, the input and output rates will am
$0,003 per 1,000 tokens and $0,006 per thousand tokens, respectively. The overall cost of generative AI will also include stora
provided you choose to host your data on OpenAI servers. Data storage expenses could add $0.2 per 1GB of data per day to th
estimate. And don’t forget the data preparation and model fine-tuning efforts. Unless your IT department possesses the requi
you’ll have to partner with a reliable AI development services company.

Even more basic foundation models, like GPT-3, can rack up initial training and deployment costs exceeding $4 million. Furthe
complexity of these foundation models has skyrocketed at an astonishing rate in recent years.

For a mid-sized enterprise aiming to use a moderately large model like GPT-2 on-premises, the associated generative AI costs
Hardware: $20,000–$50,000 (for a couple of high-end GPUs or a basic multi-GPU setup)
Electricity and maintenance: Around $2,000–$5,000 per year
Integration and deployment: $10,000–$30,000 (assuming moderate integration complexity)
Data storage and management: $5,000–$15,000 (varying with data size)

The total cost of setting up and operating a generative AI solution would include the following:
Initial deployment expenses: Approximately $37,000 to $100,000 (hardware + initial integration and storage setup)
Recurring expenses: $7,000 to $20,000 (including electricity, maintenance, ongoing integration, and data management costs)
3 per 1,000 tokens for output text.

al idea of what to expect.

Using Vendor model directly

Category Item Lower Cost estimate ($) Higher Cost estimate ($)
Hardware 20000 50000
Initial Electricity and Maintenance 2000 5000
deployment Integration & Deployment 10000 30000
expenses
Data Storage and Management 5000 15000
Cost $ 37,000.00 $ 100,000.00
Electricity and Maintenance 2000 5000
Recurring
expenses Data Storage and Management 5000 15000
Cost $ 7,000.00 $ 20,000.00
OpenAI’s GPT-4 Turbo, one of the most sophisticated tools on the market, charges $0.01 per 1,000 tokens for input text and $

However, the cost of the generative AI Sales GPT assistant, which currently totals $50 per user per month, could give you a ge

Integrating your corporate software with Gen AI solutions over APIs and retraining models on your data. To reduce the cost of
implementation, you could eliminate the intermediary SaaS tools, merging your apps directly with commercial Gen AI solution
level. For instance, if you’re looking to supercharge your customer support chatbot with Gen AI capabilities, you can sync it wi
OpenAI’s models—e.g., GPT-3.5 or GPT-4—using the OpenAI API. Next, you need to prepare your data for machine learning, u
data to OpenAI, and manage the fine-tuning process using the OpenAI CLI tool and Open AI Python Library. While fine-tuning
you’ll be charged $0,008 per 1,000 tokens (GPT-3.5). Once your model goes into production, the input and output rates will am
$0,003 per 1,000 tokens and $0,006 per thousand tokens, respectively. The overall cost of generative AI will also include stora
provided you choose to host your data on OpenAI servers. Data storage expenses could add $0.2 per 1GB of data per day to th
estimate. And don’t forget the data preparation and model fine-tuning efforts. Unless your IT department possesses the requi
you’ll have to partner with a reliable AI development services company.

Even more basic foundation models, like GPT-3, can rack up initial training and deployment costs exceeding $4 million. Furthe
complexity of these foundation models has skyrocketed at an astonishing rate in recent years.

For a mid-sized enterprise aiming to use a moderately large model like GPT-2 on-premises, the associated generative AI costs
Hardware: $20,000–$50,000 (for a couple of high-end GPUs or a basic multi-GPU setup)
Electricity and maintenance: Around $2,000–$5,000 per year
Integration and deployment: $10,000–$30,000 (assuming moderate integration complexity)
Data storage and management: $5,000–$15,000 (varying with data size)

The total cost of setting up and operating a generative AI solution would include the following:
Initial deployment expenses: Approximately $37,000 to $100,000 (hardware + initial integration and storage setup)
Recurring expenses: $7,000 to $20,000 (including electricity, maintenance, ongoing integration, and data management costs)
3 per 1,000 tokens for output text.

al idea of what to expect.

Using Vendor model directly

Category Item Cost estimate ($)
Hardware 25000
Electricity and Maintenance 3500
Initial deployment
expenses Integration & Deployment 20000
Data Storage and Management 10000
Cost $ 58,500.00
Electricity and Maintenance 3500
Recurring expenses Data Storage and Management 10000
Cost $ 13,500.00
For a mid-sized enterprise looking to fine-tune a moderately large model like GPT-2, the associated generative AI im
Hardware: $20,000–$30,000 (for a moderate GPU setup)
Development: Assuming 6 months of development time with a mix of in-house and outsourced talent:

In-house: $35,000–$100,000 (half-year salary)

Outsourcing: $20,000–$40,000 (assuming 400 hours at an average rate of $75/hr)
Data preparation: $5,000–$20,000 (varying with data size and complexity)
Maintenance: $5,000–$15,000 per year (ongoing expenses)
The total cost of setting up and operating a generative AI solution would include the following:
Initial deployment expenses: Approximately $80,000 to $190,000 (including hardware, development, and data prep
Recurring expenses: $5,000 to $15,000 (maintenance and ongoing costs)
he associated generative AI implementation costs could span:
Fine Tuning the Model provided by Vendor
utsourced talent: Category Item
Hardware
Intitial Development
Deplyment Data Preparation
Expense
Maintenance
Cost
Recurring Maintenance
e, development, and data preparation costs) Expenses Cost
ine Tuning the Model provided by Vendor
Lower Cost estimate ($) Higher Cost estimate ($)
20000 30000 15000 3 45000
55000 140000
5000 20000 Data preparation 1 consultant 300
5000 15000 5
$ 85,000.00 $ 205,000.00 Developer Developer 200
5000 15000 Vendor Engineer 400
$ 5,000.00 $ 15,000.00
12000

20 32000
20 64000
96000
For a mid-sized enterprise looking to fine-tune a moderately large model like GPT-2, the associated generative AI im
Hardware: $20,000–$30,000 (for a moderate GPU setup)
Development: Assuming 6 months of development time with a mix of in-house and outsourced talent:

In-house: $35,000–$100,000 (half-year salary)

Outsourcing: $20,000–$40,000 (assuming 400 hours at an average rate of $75/hr)
Data preparation: $5,000–$20,000 (varying with data size and complexity)
Maintenance: $5,000–$15,000 per year (ongoing expenses)
The total cost of setting up and operating a generative AI solution would include the following:
Initial deployment expenses: Approximately $80,000 to $190,000 (including hardware, development, and data prep
Recurring expenses: $5,000 to $15,000 (maintenance and ongoing costs)
he associated generative AI implementation costs could span:
Fine Tuning the Model provided by Vendor
utsourced talent: Category Item
Hardware
Development
Intitial Deplyment
Expense Data Preparation
Maintenance
Cost
Maintenance
Recurring Expenses
e, development, and data preparation costs) Cost
el provided by Vendor
Cost estimate ($)
25000 15000 3 45000
100000
13000 Data preparation 1 consultant 300 12000
10000 5
$ 148,000.00 Developer Developer 200 20 32000
10000 Vendor Engineer 400 20 64000
$ 10,000.00 96000
Factors Build Using Vendor Model directly
Cost High Low
Accuracy Medium-High Medium
Customization High Low
Implementation speed Low High
Dependency on Vendor No Yes
Fine tuning the Vendor Model
Medium
High
High
Medium
Yes
Region Product RFP Responded RFP missed Avg win rate
Newton 124 40 16%
US&C Edison 308 87 12%
Tesla 328 70 18%
Newton 68 21 14%
Pacific Edison 190 20 13%
Tesla 20 0 16%
Newton (UK) 50 0 23%
UK
Tesla 43 0 19%
Edison 65 12 11%
Europe
Tesla 76 23 25%
Asia Tesla 55 9 13%
Total 1327 282
Total % 82.47% 17.53%
Avg Revenue per win ($M) Existing Automation Revenue ($M) Loss ($M)
2.5 49.6 16
Semi automated with
2 workflow tool 73.92 20.88
5 295.2 63
2.5 23.8 7.35
Semi automated with
2 workflow tool 49.4 5.2
2 6.4 0
3.5 40.25 0
Manual process
5 40.85 0
2 14.3 2.64
Manual process
5 95 28.75
5 Semi Automated 35.75 5.85
724.47 ~149.67
~20.67%
 Category Cost $/RFP Number of RFP Total ($)
RFP responded 66240 1327 $ 87,900,480.00
Total revenue earned $ 724,470,000.00
%RFP responded cost of Total revenue earned 12.13%
1. Research and Development (R&D)

Skilled Researchers and Data Scientists: $50,000 – $150,000

This is the cost for experts leading the research and development phase.
Domain Experts: $60,000 – $120,000
These are Expenses associated with professionals specializing in the Generative AI industry or domain.

2. Data Acquisition and Processing

High-Quality Datasets: $30,000 – $100,000

Cost to acquire and process datasets crucial for training the generative AI model.
Data Cleaning and Processing: $20,000 – $60,000
Expenses related to refining and preparing data for model training.

3. Infrastructure and Hardware

GPUs and Specialized Processors: $40,000 – $120,000

Cost for powerful hardware required for the computational demands of model training.
Cloud Resources: $30,000 – $80,000
These are expenses associated with utilizing cloud platforms for scalable computing.

4. Model Architecture and Algorithms

State-of-the-Art Algorithms: $40,000 – $80,000

Cost for implementing advanced algorithms in the generative AI model.
Custom Model Architecture: $50,000 – $150,000
Expense is tied to creating a unique and tailored model structure.

5. Integration and Deployment

Platform Integration: $30,000 – $100,000

The cost involved in integrating generative AI into existing systems or platforms.
Deployment: $40,000 – $120,000
The expense related to rolling out the developed generative AI application.

6. Testing and Validation

Rigorous Testing: $20,000 – $60,000

Costs for thorough testing procedures to ensure the reliability of the generative AI model.
Validation Against Real-World Data: $30,000 – $80,000
Expenses associated with validating the model’s performance with real-world data.

7. Maintenance and Updates

Ongoing Maintenance: $40,000 – $100,000

Cost for continuous upkeep of the generative AI system.
Updates and Improvements: $50,000 – $150,000
Expense is tied to enhancing and refining the generative AI application over time.

8. Regulatory Compliance

Compliance Measures: $30,000 – $80,000

Cost for ensuring adherence to data protection and privacy regulations.
Audits and Documentation: $40,000 – $100,000
Expense is related to regulatory audits and documentation.

9. Skill Level and Expertise

Highly Skilled Professionals: $80,000 – $150,000

The cost associated with hiring and retaining top-tier talent for generative AI development.

10. Miscellaneous Expenses

Project Management: $10,000 – $40,000

Cost related to overseeing and managing the entire generative AI development project.

Communication and Collaboration Tools: $5,000 – $20,000

Expenses for tools facilitating effective team communication.

Contingency: $20,000 – $50,000

Budget reserved for unexpected or unforeseen costs.

Total Estimated Cost Range: $600,000 – $1,500,000

These cost estimates give a complete view, taking into account possible differences depending on the project’s det
It’s important for everyone involved to decide which parts are most important based on the project’s goals and bud

Recurring Cost

1. Infrastructure Maintenance

Continual expenses for maintaining and upgrading hardware infrastructure, including GPUs and specialized process
Estimated Cost: $40,000 – $100,000 annually.

2. Cloud Service Fees

Regular expenses for using cloud services, which are necessary for scalable computing and storing data.
Estimated Cost: $30,000 – $80,000 annually.

3. Data Refresh and Updates

Costs associated with acquiring new datasets or updating existing ones to keep the model relevant and accurate.
Estimated Cost: $20,000 – $60,000 annually.

4. Algorithm and Model Enhancements

Ongoing expenses for refining and updating algorithms and the model architecture to improve performance.
Estimated Cost: $50,000 – $150,000 annually.

5. Regulatory Compliance Maintenance

Expenses for continuous adherence to evolving data protection and privacy regulations.
Estimated Cost: $30,000 – $80,000 annually.

6. Skill Retention and Training

Costs associated with retaining skilled professionals and providing ongoing training to keep them updated.
Estimated Cost: $80,000 – $150,000 annually.

7. Security Measures

Investments in maintaining and updating security protocols to safeguard against evolving threats.
Estimated Cost: $40,000 – $100,000 annually.

8. Updates in Line with Technological Advancements

Adaptation to emerging technologies to enhance the generative AI system’s capabilities and efficiency.
Estimated Cost: Variable, depending on technological advancements.

9. Miscellaneous and Contingency

A budget reserved for unforeseen circumstances, miscellaneous expenses, and adjustments.

Estimated Cost: $20,000 – $50,000 annually.
Total Estimated Ongoing Costs Range: $350,000 – $820,000 annually.
 50000 150000 300 120
60000 120000 400 120

dustry or domain.

30000 100000
20000 60000

40000 120000
30000 80000

40000 80000
50000 150000

30000 100000
40000 120000

20000 60000
30000 80000

40000 100000
50000 150000
 30000 80000
40000 100000

80000 150000

10000 40000

5000 20000

20000 50000

715000 1910000

epending on the project’s details, location, and available resources.

on the project’s goals and budget.

GPUs and specialized processors. 40000 100000

g and storing data. 30000 80000

odel relevant and accurate. 20000 60000

o improve performance.
50000 150000

30000 80000

o keep them updated. 80000 150000

ving threats.
40000 100000

ties and efficiency.

40000 50000

20000 50000
350000 820000
72000
96000

30000
20000

60000

30000

40000
50000

30000
40000
 RFP Solution built from scratch
Category Item
R&D cost

Data Acquisition and Processing

Infrastructure and Hardware

Model Architecture and Algorithms

Integration and Deployment

Initial
Development
cost Testing and Validation

Maintenance and Updates

Regulatory Compliance
Skill Level and Expertise
Project Management
Miscellaneous Expenses
Cost
Infrastructure Maintenance
Cloud Service Fees
Data Refresh and Updates
Algorithm and Model Enhancements
Recurring Regulatory Compliance Maintenance
Expenses Skill Retention and Training
Security Measures
Updating with Technological Advancements
Miscellaneous and Contingency
Cost
 RFP Solution built from scratch
Resource Type Lower Cost estimate ($) Higher Cost estimate ($)
Data scientist 50000 150000
SME 60000 120000
High Quality Datasets 30000 100000
Data cleaning and processing 20000 60000
GPUs and Specialized Processors 40000 120000
Cloud Resources 30000 80000
State-of-the-Art Algorithms 40000 80000
Custom Model Architecture 50000 150000
Platform Integration 30000 100000
Deployment 40000 120000
Rigorous Testing 20000 60000
Validation Against Real-World Data 30000 80000
Ongoing Maintenance 40000 100000
Updates and Improvements 50000 150000
Compliance Measures 30000 80000
Audits and Documentation 40000 100000
Highly Skilled Professionals 80000 150000
Project Manager 10000 40000
Communication and Collaboration Tools 5000 20000
Contingency 20000 50000
Cost $ 715,000.00 $ 1,910,000.00
40000 100000
30000 80000
20000 60000
50000 150000
30000 80000
80000 150000
40000 100000
40000 50000
20000 50000
Cost $ 350,000.00 $ 820,000.00
 RFP Solution built from scratch
Category Item
R&D cost

Data Acquisition and Processing

Infrastructure and Hardware

Model Architecture and Algorithms

Integration and Deployment

Initial
Development
cost Testing and Validation

Maintenance and Updates

Regulatory Compliance
Skill Level and Expertise
Project Management
Miscellaneous Expenses
Cost
Infrastructure Maintenance
Cloud Service Fees
Data Refresh and Updates
Algorithm and Model Enhancements
Recurring Regulatory Compliance Maintenance
Expenses Skill Retention and Training
Security Measures
Updating with Technological Advancements
Miscellaneous and Contingency
Cost
olution built from scratch
Resource Type Cost estimate ($)
Data scientist 100000
SME 90000
High Quality Datasets 65000
Data cleaning and processing 40000
GPUs and Specialized Processors 80000
Cloud Resources 50000
State-of-the-Art Algorithms 60000
Custom Model Architecture 100000
Platform Integration 65000
Deployment 80000
Rigorous Testing 40000
Validation Against Real-World Data 55000
Ongoing Maintenance 70000
Updates and Improvements 100000
Compliance Measures 50000
Audits and Documentation 70000
Highly Skilled Professionals 40000
Project Manager 25000
Communication and Collaboration Tools 12500
Contingency 35000
Cost $ 1,227,500.00
70000
55000
40000
100000
55000
40000
70000
40000
35000
Cost $ 505,000.00
Region Product RFP Responded RFP missed RFP response % Avg win rate
Newton 124 40 75.6% 16%
US&C Edison 308 87 78.0% 12%
Tesla 328 70 82.4% 18%
Newton 68 21 76.4% 14%
Pacific Edison 190 20 90.5% 13%
Tesla 20 0 100.0% 16%
Newton (UK) 50 0 100.0% 23%
UK
Tesla 43 0 100.0% 19%
Edison 65 12 84.4% 11%
Europe
Tesla 76 23 76.8% 25%
Asia Tesla 55 9 85.9% 13%
Decision Factor Region Rank Product Rank
12.1% 2
9.4% 1 1
14.8% 3
10.7% 1
11.8% 3 2
16.0% 3
23.0% 2
5
19.0% 1
9.3% 1
4
19.2% 2
11.2% 2 1
 Mockup Screen

Instructions Generate a comprehensive Proposal as per the attached documents. The Proposal sh
include detailed solution, timeline, budget, and any other information necessary for
Client. Please ensure the proposal is clear, concise, and structured in a professional
format suitable for distribution to potential vendors.

Attachments Client requirement Output

R&C requirement Proposal
Industry and Geo requirements

Generate a comprehensive Request for Proposal (RFP) document for [specific pro
Screen

documents. The Proposal should Settings

er information necessary for
structured in a professional
Decoding type

Temperature

Repitition penalty Sampling -more creative

Min Token Higher the value, more creativity

Max Token Low values allows repitition, high value doesn't

P) document for [specific project or task]. The RFP should include detailed requirements, objectives, timeline, budget considerations, evalu
ore creativity

pitition, high value doesn't

ne, budget considerations, evaluation criteria, and any other pertinent information necessary for potential vendors to understand the pro
vendors to understand the project scope and submit proposals. Please ensure the RFP is clear, concise, and structured in a professional for
tructured in a professional format suitable for distribution to potential vendors.
 RFP request
Client Procurement
RFP received

RFP request
Client Procurement
Proposal received
 RFP
urement applica
tion

RFP Details
RFP
ocurement application
Prepared Proposal