How to Find Government Contracts for Small Business Using AI

Jan 25, 2026

by

Settle

by

Settle

Winning Public Bids in the Digital Age

For many small business owners, the government marketplace feels like an exclusive club. With billions of dollars in federal, state, and local contracts awarded annually, the opportunity is massive. However, the process is often buried under layers of bureaucracy, complex procurement portals, and hundreds of pages of compliance documents.

Traditionally, finding these opportunities required hours of manual searching on sites like SAM.gov. Today, artificial intelligence (AI) is changing the game. By using AI to find government contracts, small businesses can move from reactive searching to proactive winning. This technology acts as a revenue unlock, allowing lean teams to identify high-fit public RFPs and automate the entire discovery-to-submission pipeline.

The Challenges of Traditional RFP Hunting

Small to medium enterprises (SMEs) face three major hurdles when entering the government contracting space:

  • Information Overload: Thousands of new bids are posted daily. Finding the ones you can actually win is like finding a needle in a haystack.

  • Resource Constraints: Small teams don't have dedicated bid managers. Every hour spent searching is an hour taken away from core operations.

  • Complex Requirements: Deciphering technical requirements in an RFP takes time and specialized knowledge.

This is where AI provides an unfair advantage. Tools like Settle AI automate this process by scanning thousands of data points to find the contracts that align perfectly with your business's capabilities.

How AI Simplifies Government Contract Discovery

1. Automated Opportunity Sourcing

Instead of manually checking multiple portals, AI algorithms can crawl procurement sites 24/7. You can set specific parameters—such as NAICS codes, contract size, and location—and the AI will alert you the moment a matching Request for Proposal (RFP) is published.

2. High-Fit Scoring

Not every contract is worth your time. AI can analyze your past performance and company profile to 'score' new opportunities. By focusing only on high-fit RFPs, you increase your win rate while reducing wasted effort.

3. Automated Content Parsing

AI tools can read through a 100-page solicitation in seconds. They highlight key dates, mandatory requirements, and evaluation criteria, giving your team a summarized 'go/no-go' report instantly.

Scaling from Discovery to Submission

Finding the contract is only half the battle. The next step is responding with a winning proposal. For mid-market firms, this often leads to a 'manual RFP tax'—the hidden cost of pulling experts away from their jobs to answer the same security and technical questions repeatedly.

Settle solves this by acting as a centralized knowledge hub. By using AI-powered Q&A automation, the platform pulls from your previous successful bids to draft high-quality responses. This ensures efficiency and accuracy across every document you submit.

The Value of Collaborative Workflows

Government bidding is a team sport. Even with AI drafting the content, you need human oversight to ensure compliance. Modern AI platforms offer collaborative workflows that streamline the review and approval process. This allows your subject matter experts to jump in, verify the AI-generated content, and provide the final polish without the back-and-forth of endless email threads.

Getting Started with AI Bid Automation

If you are ready to use AI to grow your government contracting revenue, follow these steps:

  • Audit Your Current Process: How much time do you spend searching for bids versus writing them?

  • Centralize Your Knowledge: Gather your past proposals, case studies, and compliance documents into one place.

  • Implement AI Tools: Adopt a platform like Settle to automate discovery and draft responses.

  • Iterate and Polish: Use AI to generate the first 80% of the work, then use your unique expertise to finish the final 20%.

By leveraging AI, small businesses no longer have to feel small. You can compete at the level of much larger firms, winning more contracts with fewer resources.

Learn more about RFP automation

Learn more about RFP automation

BG

Submit your next proposal, within 48 hours or less

Stay ahead with the latest advancement in proposal automation.

BG

Submit your next proposal, within 48 hours or less

Stay ahead with the latest advancement in proposal automation.

BG

Submit your next proposal, within 48 hours or less

Stay ahead with the latest advancement in proposal automation.