AI in Government Contracting: Finding a Balance Between Innovation, Compliance and Security

Originally published in The AI Journal on June 27, 2025

The establishment of the widely publicized DOGE (Department of Government Efficiency) highlights the new administration’s focus on improving efficiency in government operations and, as a result, impacts companies supporting those operations. DOGE’s goal is to push the sector toward technology modernization and consolidation and increased productivity. This shift is poised to transform both the government sector itself and the organizations that work to support it – especially government contractors (GovCons). 

This has created an urgent need for effective AI-driven solutions among government contractors – both those they build for the government mission, as well as use within their own back-office – that can help accelerate innovation, more rapidly deliver cost-effective solutions, and demonstrate value and mission alignment to government customers, with the goal of remaining competitive in the months and years to come. However, to make sure the transformation reaches the goals that the Trump administration has set out to achieve, the GovCon sector must balance technology implemented by capability with regulatory compliance. Ensuring the deployment of new AI-enabled tools in alignment with foundational security and compliance standards remains critical regardless of the capability.