If you’ve been part of the defense industrial base (DIB) or are looking to support the DoW, it should come as no surprise that AI is now seeing actionable impact in day-to-day operations. Strategically, AI is essential in warfighting decision-making, analyzing data and enhancing operational logistics. The Army in particular has started incorporating AI solutions across a number of elements outlined below, on the heels of several new strategy announcements and initiatives.

In early February, Chief of Naval Operations Admiral Daryl Caudle unveiled the details of the US Navy’s 2026 Hedge Strategy. As the Navy is facing a great power competition, rapid technological change and strain on the defense industrial base, it is critical to adapt an innovative operational and strategic approach to maintain adversarial advantage. The strategy shifts away from dominance by mass towards a risk-balanced operational approach that has asymmetric, combat-ready capability. In other words, they are “hedging their bets” on more tailored capabilities and nimble operations.

At WEST this year, Department of the Navy leaders signaled a clear shift in modernization priorities: the debate is no longer about adopting emerging technology or drafting strategy documents. Instead, we’re seeing operational speed, how quickly the Navy can field capability, integrate systems and make decisions, become the objective. Across sessions on shipbuilding, acquisition transformation, AI, Zero Trust and maritime force design, the recurring theme was speed matters most.

Over the last year, the Army has been undergoing significant transformation under the Army Transformation Initiative and the larger Pentagon reorganization efforts. This includes the more recent decision to change from Program Executive Offices (PEO) to Portfolio Acquisition Executives (PAEs) to have tighter alignment across missions, the Chief Information Office (CIO), contracting and functional owners. This reorganization will help reduce siloed IT modernization, speed up decision-making and better align acquisition with operational outcomes.

Public sector agencies update their priorities, budgets and technology needs every fiscal year. For IT vendors and resellers, keeping pace with these changes is essential to identifying funded opportunities and positioning solutions effectively. To make that easier, we have opened access to our Market Intelligence Hub, a single destination where you can find detailed research and analysis designed to support your growth in the government market.

The 2026 FETC Conference took place in Orlando, Florida this year, where K-12 education leaders highlighted how budgets, technology trends, requirements and opportunities are intersecting and how alignment is key to success.

Aging infrastructure, outdated hardware and overall modernization needs have been a mission-critical challenge for the DoD. It’s not just about IT headaches; there are real obstacles to modernization for the Department. Let’s look at what’s driving the urgency to update in multiple ways and how IT companies can position themselves to help modernize the nation’s defense backbone.

This week, the National Association of State Chief Information Officers (NASCIO) released it annual State CIO Top Ten Policy and Technology Priorities list for 2026, signaling where state technology leaders are focusing their efforts, and limited resources, in the new year. This year’s list is reflective of the current policy, priority, and funding shifts that have affected SLED agencies most, coupled with the apparent drive towards innovation and modernization.

On December 11, 2025, President Trump signed a new executive order that could reshape how AI is governed in the U.S. This executive order titled “Ensuring a National Policy Framework for Artificial Intelligence,” aims to limit the ability of individual states to enact their own AI regulations, thereby establishing a unified and “minimally burdensome” approach to AI policy nationwide (up until this point, there has been a patchwork of state-level AI regulations).