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Modi government will soon use AI to draft tenders
03 Jun 2026

The Indian government is looking to leverage artificial intelligence (AI) for drafting and reviewing procurement documents.

The National e-Governance Division (NeGD), under the Ministry of Electronics and Information Technology (MeitY), has invited bids to develop an AI-based platform.

This system will be capable of generating draft procurement documents, recommending clauses, identifying compliance gaps, and reviewing existing tenders.

How the AI platform will work
System capabilities

The proposed AI platform is expected to support the preparation of various procurement documents, including Requests for Proposal (RFPs), Requests for Quotations (RFQs), and Requests for Expressions of Interest (EOIs).

Users will be able to start with a project brief or upload supporting documents.

The system would then recommend procurement methods, templates, and clauses based on this information.

Ensuring compliance with regulations
Compliance checks

The AI platform will also validate documents against frameworks such as the General Financial Rules (GFR) and department of expenditure procurement manuals.

It will flag missing sections and non-compliant clauses, ensuring that all procurement documents are in line with existing rules.

This comes amid increased scrutiny over the government's tendering process after a recent controversy involving the Central Board of Secondary Education's On-Screen Marking (OSM) system.

Performance benchmarks set for the AI platform
Performance benchmarks

NeGD has set ambitious performance benchmarks for the AI platform.

The tender seeks a 70-80% reduction in the time taken to prepare procurement documents and at least a 40% reduction in pre-bid clarification queries raised by prospective bidders.

The agency also expects the system to minimize hallucinations with a target hallucination rate of less than 5% and a faithfulness score of at least 95%.

Addressing concerns around AI-generated content
Content review

To address concerns around AI-generated content, the platform will follow Human-in-the-Loop (HITL) principles.

AI-generated suggestions won't be automatically inserted into documents. Instead, officials will have the option to review, modify or reject recommendations with every action recorded in an audit trail.

"The system shall enable the user to review each suggestion and accept, modify, or reject it," states the tender document issued on May 26.

The role of officials in the process
User assistance

The AI platform is meant to assist officials, not replace them.

"The system shall function as a drafting and decision-support utility and shall not substitute the prescribed administrative, financial, legal, or procurement approvals required prior to the issuance of an RFP," says the RFQ.

It adds that any document produced by the system "shall be treated as a working draft and shall remain subject to due internal review and approval by the competent authority."