Artificial Intelligence (AI) has become a hot topic around the world in recent years, and since OpenAI launched the ChatGPT Since then, this is especially true. AndUSAdefense and security agencies have also moved quickly to begin investing in AI projects on a large scale.
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According to an analysis by FortuneMinistry of National Defense(DoD) has signed approximately $670 million in contracts over the past two years involving nearly 323 companies focused on a wide range of AI-related projects. This figure represents an increase of 20% over 2021 and 2022, a significant increase in both the number of companies working together and the total amount of contracts.
Meanwhile, the Department of Homeland Security (DHS) isn't lagging behind, having made $22 million in contract payments in the last two years and partnered with 20 companies, which is more than triple the amount spent in the previous two years. By analyzing publicly available contract and spending data, it's clear that the DoD is actively partnering with a wide range of well-known technology contractors as well as a number of emerging startups, such as Palantir and Scale AI.
Among the Department of Defense's largest AI contracts since FY2023 is a $117 million contract with ECS Corporation to design and develop prototypes of AI and machine learning algorithms for the U.S. Army. In addition, Palantir was also awarded a $91 million contract to test end-to-end AI solutions for defense cases.
In addition to these large contracts, the Department of Defense has 83 ongoing contracts for AI projects involving a number of different companies, which have varying payment levels as low as $4 million. If all of these contracts are paid on time, the DoD is expected to spend more than $1 billion on AI projects by next year.
On the DHS side, the largest contract is relatively small at $4 million, and is being handled primarily by the marketing firm LMD, which provides marketing and AI services to the Coast Guard. Notably, LMD is also responsible for DHS's "If You See Something, Say Something" campaign.
At this time, the Department of Defense and the Department of Homeland Security have not commented much on these projects. However, this series of contracts shows the US government's growing emphasis on AI technology, looking to AI to enhance defense and security capabilities.