How Government Agencies Can Leverage AI to Improve Grant Application Success Rates

During Victoria Tech Week, Button facilitated a workshop that revealed a striking challenge facing government agencies: the majority of grant applications never make it past basic eligibility screening.

Data from Employment and Social Development Canada shows that in 2022, 63% of applications to their programs were deemed ineligible before evaluation even began. Innovation, Science and Economic Development Canada reported similar patterns, with nearly 40% of applications rejected for administrative or incomplete documentation issues.

For public sector organizations managing limited resources while pursuing essential funding opportunities, these statistics represent more than missed opportunities—they represent capacity constraints that AI-powered approaches can help address.

Strategic AI Integration: A Force Multiplier for Public Sector Capacity

Mike Vesprini, Full Stack Developer at Button, led the workshop with a simple but powerful premise: AI doesn't replace the expertise and judgment of grant professionals; it amplifies their effectiveness. This matters for government agencies navigating procurement policies, accountability requirements, and the need to maintain human oversight in decision-making.

The workshop outlined how AI tools can serve as strategic partners throughout the grant lifecycle while maintaining compliance with organizational AI use policies:

Pre-Application Intelligence
AI can analyze funding body documents to extract language patterns, identify unstated priorities, and map the intent behind funding programs. This creates strategic intelligence briefs that help agencies understand what evaluators are looking for beyond the published criteria. For agencies juggling multiple grant opportunities at once, this significantly reduces guesswork in proposal development.

Eligibility and Compliance Management
With administrative issues causing a substantial portion of rejections, AI tools excel at creating comprehensive checklists, tracking documentation requirements, and ensuring all eligibility criteria are explicitly addressed. These systems can cross-reference proposal content against funding guidelines to flag potential gaps before submission.

Narrative Alignment and Strategic Framing
Government agencies need to translate their program objectives into the specific vocabulary and narrative framework of each funding body. AI can help reframe proposals to match the tone, terminology, and priorities of funders while maintaining the integrity of the underlying program goals. When criteria seem difficult to meet directly, AI can help identify the underlying intent and articulate how your approach addresses it equivalently - something that requires explicit explanation in public sector applications.

Implementing AI Tools Within Public Sector Governance Frameworks

The workshop emphasized several principles for government adoption:

Maintain Human Authority and Accountability
AI-generated content requires verification at every stage. Sources need to be validated, outputs reviewed for accuracy, and final responsibility for all submitted content rests with the applicant organization. This aligns with the accountability structures inherent in public sector operations.

Protect Sensitive Information
Never include confidential, private, or sensitive information in AI prompts. Government agencies must maintain strict data governance practices when using these tools.

Ensure Policy Compliance
All AI use must comply with your municipality's or organization's AI use policies. These frameworks exist to protect both the organization and the public interest.

Use Multiple Models Strategically
Tools like Claude, ChatGPT, and Perplexity each have different strengths. Using them in combination - testing outputs against each other and iterating on prompts across platforms - produces stronger results. This multi-model approach also prepares agencies for a landscape where funding bodies themselves may use AI in evaluation processes.

Practical Applications for Government Grant Teams

Workshop participants, many new to grant writing, engaged deeply with practical applications:

• Converting bullet-point program descriptions into polished prose that matches funder narrative and terminology
• Generating comprehensive outlines that ensure all evaluation criteria are addressed
• Creating iterative prompt chains for complex proposal sections requiring multiple layers of detail
• Reframing difficult criteria in terms of broader funder objectives to identify indirect pathways to compliance
• Summarizing lengthy policy documents to extract key points relevant to specific grant applications

One valuable discussion centered on making applications easy for adjudicators to assess - a principle that AI tools can help implement by ensuring explicit language, clear alignment with criteria, and strategic use of the funder's own vocabulary.

Building Public Sector Capacity Through Technology

For technologists and administrative officers alike, the implications extend beyond individual grant applications. AI tools represent an opportunity to build organizational capacity in resource-constrained environments. When 37% of all applications fail eligibility screening and another 19% fail merit assessment, even modest improvements in application quality can significantly increase funding success rates.

The key is approaching AI as a capability that enhances, rather than replaces, the judgment, expertise, and accountability that define effective public sector operations.

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Button specializes in helping government agencies navigate digital transformation challenges with practical, compliance-focused approaches. For more insights on leveraging technology to enhance public sector capacity, subscribe to Button Insight—our newsletter delivering actionable intelligence for government technology leaders.