U.S. Federal AI Spending Skyrockets as Defense Department Dominates
-
U.S. federal government spending on AI has surged over 1500% in the past year, reaching over $4.5 billion in potential contract value, driven predominantly by the Department of Defense
-
The number of federal agencies investing in AI increased from 17 to 23, though over 95% of spending came from the DoD
-
There has been a shift from small experimental AI contracts to large implementation contracts, signalling a move from testing to real-world deployment
-
The vendor landscape remains fragmented but larger players like Accenture and Lockheed Martin are moving quickly into the AI market
-
Concerns remain about the coordination of federal AI activities, with calls for more strategic planning and collaboration to maintain U.S. leadership in AI