Deep Dive: Department of Defense

Back To Insights

Written by Emily Wolfteich
Senior Industry Analyst

In the News

Guiding Policies

Funding Structure

$961.6 billion total
FY26 Budget: $848.3 billion

Reconciliation supplement:

$113.3 billion infusion through a reconciliation bill.

Priorities and Use Cases

AI Areas of Focus

(Based on the Treasury 2026 Budget Executive Summary and Treasury Strategic Plan 2022-2026.)

Example Use Cases

(Based on 2024 Federal AI Use Case Inventories.)

Unmanned and remotely operated aerial systems
Autonomous ground vehicles
Maritime autonomous systems
Underwater capabilities
Enabling autonomy software and cross-domain integration

^{_{To read additional thought leadership from Emily, connect with her on LinkedIn.}}

AI in December (2025)

A look at December’s top AI news in government: The House Task Force report, DHS’s DHSChat launch, and the White House’s 1,700+ federal AI use case inventory.

Photo source: Anela R/peopleimages.com via Adobe Stock.

7 Ways BD & Sales Teams Can Use Federal Personas for Competitive Advantage

Explore 7 strategies for BD and sales teams to use research-based federal personas to sharpen pursuit strategy, tailor messaging, boost credibility, and gain a competitive edge in government contracting.

AI in August (2025)

Key AI news from August 2025: GSA launched USAi.Gov for federal AI adoption, the Pentagon’s Advana platform faced cuts and setbacks, and the Army tested smart glasses for vehicle maintenance. Also, the Department of Labor unveiled a national AI workforce strategy, and Colorado lawmakers began revising the state’s pioneering AI Act.

Photo source: rrodrickbeiler via Adobe Stock.

Deep Dive: Department of Treasury

A look inside Treasury’s 2026-era tech strategy: AI isn’t a standalone budget line — but ~$48.8 M funding for a centralized fraud-detection platform points to growing use of chatbots, generative AI pilots, taxpayer services, fraud monitoring, and data-driven automation under its IT-modernization efforts.

Photo source: BeblackDesign via Adobe Stock.

Decoding OMB Memorandums M-25-21 and M-25-22

Explains Office of Management and Budget (OMB) M‑25‑21 and M‑25‑22 — new federal‑AI directives that replace prior guidance, empower agencies to adopt AI faster, and streamline procurement, while aiming to balance innovation, governance and public trust.

Photo source: Lazy_Bear via Adobe Stock.

News Bite: AI Slop, Jon Oliver, and (Literally) Fake News

Examines the rise of ‘AI slop’ — cheap, AI-generated content masquerading as real media — and how it’s fueling viral fake news, degrading digital discourse, and undermining trust online.

AI in July (2025)

Federal AI Policy Heats Up in July: The Trump administration unveiled its “America’s AI Action Plan,” prompting a lawsuit over deregulation and a battle with states. Also featuring: a new defense bill with AI provisions and GSA’s $1 ChatGPT deal for federal agencies.

AI in Government: A Question of Trust

Explores how the use of AI by government agencies raises fundamental questions of trust — weighing the benefits of efficiency, fraud detection and streamlined services against serious risks around bias, transparency, accountability, and public confidence.

Insights at a Glance: May 2025

A data driven rundown of the latest federal AI, policy and government‑tech developments from May 2025.

AI in April (2025)

April’s AI news: New White House policies, controversial federal agency automation, military digital overhaul, the TAKE IT DOWN Act, and plans to integrate AI in K-12 education.

Photo source: FAMILY STOCK via Adobe Stock.

Insights at a Glance: March 2025

A data driven rundown of the latest federal AI, policy and government‑tech developments from March 2025.

Policy Dive: AI in the First Week of Trump

Covers the first‑week AI moves by the new administration — from revoking prior federal AI safeguards to launching a sweeping AI‑domination agenda that prioritizes innovation and global competitiveness over prior guardrails.

AI in January (2025)

Explore the new Trump administration’s deregulatory shift, the massive “Stargate Project” with tech giants, the emergence of a high-performing, cost-effective Chinese AI model (DeepSeek), the launch of OpenAI’s ChatGPT Gov, and key ethical priorities set by the NAIAC.