Technically Speaking

During this year’s Smart Cities Connect Conference and Expo in Raleigh, NC, one topic garnered considerable attention: AI. Within many city governments, AI is past experimentation and has moved into production. In 2026, city IT leaders are prioritizing  safe, secure, and data-driven AI deployments that deliver measurable outcomes in mobility, public safety, infrastructure management, and climate resilience.However, as cities move toward operational AI, challenges exist around data readiness, governance, and integration across departments.

In 2023, California Governor Gavin Newsom signed Executive Order N-12-23, directing state government institutions to utilize AI. These state entities are now beginning to move from the theoretical planning phase into the deployment phase with concrete plans.

This year’s Beyond the Beltway conference highlighted key strategic findings from IT leaders that signal where 2026 technology investments will be made and where to focus efforts for success. In 2026, state and local governments are at an inflection point: with rising expectations evolving alongside tightening budgets, staffing and timelines, success will depend on alignment of solutions to modernization requirements, workforce challenges and measurable ROI-driven outcomes.

The Golden Fleet, a US Navy initiative introduced by the administration in December of 2025, aims to revitalize the US shipbuilding industry, develop and sustain a new class of naval fleet and change how it does business to rapidly address maritime threats, particularly from China, in the Indo-Pacific region. The first frigate is planned for full operation in 2028.

One-Year Money (e.g., O&M, MILPERS)Funds must be obligated during the fiscal year in which they were appropriated. If O&M is appropriated for FY26, it must be obligated by September 30, 2026. After that, it expires for new obligations. This drives the well-known fourth quarter execution surge.

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.