Jane Edwards
An annual Deltek study has found that government contractors consider artificial intelligence and machine learning their top priorities for technology investment as they intend to improve efficiency, save time and reduce operational costs.
Deltek said Tuesday it surveyed nearly 650 GovCon leaders for the 2024 Clarity Government Contracting Industry Study and found that 34 percent of respondents ranked AI in their top three areas of focus for tech investment.
According to the report, about 80 percent of respondents are using AI to optimize internal operations and 45 percent plan to leverage the technology in the future.
“Most firms are looking to leverage emerging technology, like artificial intelligence, to achieve their business goals and adapt. We’re looking forward to seeing how increased adoption might lead to further growth and better business performance,” said Kevin Plexico, senior vice president of information solutions at Deltek.
The study showed that 54 percent of government contractors surveyed said their businesses saw higher government revenue in 2023, up from 49 percent the previous year, and 62 percent of respondents said they expect to see revenue growth in the year ahead.
Sixty percent of small businesses reported talent attraction and retention as their top business challenge.
The report also found that 46 percent of respondents said their companies intend to offer a more diversified set of products and services to the government market.
“This year, despite some challenges, we still found an optimistic outlook for increased government sales revenue and win rates in 2024. Government contractors are facing challenges when it comes to hiring skilled talent, increased competition for contract opportunities, as well as overall macroeconomic conditions,” noted Plexico, a 2024 Wash100 awardee.
