We analyzed all federal contracts that included the term “artificial intelligence” (or “AI”) in their descriptions from August 2022 to August 2023. This analysis provides a detailed look into the number of contracts awarded, the departments involved, and the financial commitments made, shedding light on the government’s increasing investment in AI technologies. [1]
Metric: Number of AI contracts
Doubling of AI Contracts: The number of AI contracts awarded by the US government has doubled from August 2022 to August 2023, indicating a significant increase in federal interest and investment in artificial intelligence.
Dominance of the Department of Defense: In 2023, the Department of Defense (DoD) accounted for approximately 70% of all federal AI contracts. This highlights the DoD's leading role in the government's AI initiatives.
Surge in DoD AI Contracts: The DoD more than doubled its federal AI contracts in 2023 compared to the previous year, underscoring the department's growing emphasis on leveraging AI technologies.
Graphs showing number of AI contracts
Number of federal AI contracts has nearly doubled
DoD's AI spending dwarfs all other agencies
DoD is exhibiting the highest growth in contracts
Metric: AI contract value
Substantial Increase in Spending: The US government's spending on AI has surged by more than $4 billion in just one year, reflecting a robust commitment to advancing AI capabilities.
DoD's Predominant Spending: A striking 95% of the total federal spending on AI comes from the DoD. This concentration of spending illustrates the strategic priority placed on AI by the defense sector.
Exponential Growth in DoD AI Investment: The DoD's spending on AI has grown 15 times over the past year, showcasing a dramatic escalation in financial investment aimed at integrating AI into defense operations and strategies.
Graphs showing spend on AI contracts
$4B additional AI spending in 1 year
DoD is dominating in federal AI contracts
1500% increase in AI contract values by DoD
These insights highlight the rapidly growing investment and strategic focus on AI by the US federal government, particularly within the Department of Defense. For AI vendors, this represents a significant opportunity to engage with federal agencies and contribute to the burgeoning AI landscape.
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Why it is important to start saving
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What percentage of my income should go to savings?
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