CATEGORY: INNOVATION IN OVERCOMING OBSTACLES
The Global Race for AI Superiority by ANTHONY GONZALES, U.S. NAVY
Naval Facilities Engineering and Expeditionary Warfare Center’s (NAVFAC EXWC) vision is to accelerate innovation to enable fleet lethality at sea and ashore. We are mission driven through ambition and determination, and inquisi- tive through constant learning. This mindset drives innovators and problem solvers to find new solutions to complex problems in order to deliver tailored solutions to the Warfighter at quicker speeds. After reading a newly released guidance from General Services Administration on Generative Artificial Intelligence (AI) acquisitions, I recognized the potential benefits of integrating AI solutions into the acquisition process and began exploring ways to implement this technology. Eager to find a solution to integrate emerging AI-based contracting solutions into my career field, I gathered my peers of contracting professionals, consisting of procurement technicians, seasoned contract specialists, contracting officers, and technical experts to identify and find solutions to problems. It became clear to me that the potential benefits of integrating AI into government contracting could reduce the time to award a contract and accelerate the delivery of key technologies to the Warfighter. Accelerating AI advancement is necessary to help the U.S. maintain a strategic advantage in deterrence, defense, national security, and innovation. AI-driven technologies, such as autonomous systems and advanced logistics plan- ning, support military deterrence and strategic posture. Acquisitions in the Department of Defense (DoD) is a key factor in maintaining the nation’s strategic advantage. However, policies and regulations may hinder rapid award schedules and may inhibit innovation. AI-driven advancements in DoD acquisitions are necessary to deliver solutions to the Warfighter in rapid pace. The 2022 National Defense Strategy (NDS) identified China as the “pacing challenge” for the United States. It directs the DoD to strengthen its abilities to defend the Homeland; deter strategic attacks against the United State., our al- lies, and our partners; deter aggression and be prepared to prevail in conflict when necessary; and ensure our future military advantage through building a resilient Joint Force and defense ecosystem. Over the past decade, China has outpaced the United States in Generative AI patents by over five times. The World Intellectual Property Organization (WIPO) reports that from 2014-2023, China led in the global patent race. The NDS directs agencies to invest in AI efforts to accelerate the delivery of key technologies to the Warfighter. Current acquisition processes are impacted through complex regulations as well as having to work in a continuous resolu- tion where funding levels are constrained throughout the fiscal year. To maintain a competitive advantage against its adversaries, the DoD must look at how to utilize nontraditional contracting methods, or innovative technologies, to deliver emerging technologies to the Warfighter quicker.
Figure 1. Patent Issuance by Inventor Location
Source: The World Intellectual Property Organization Patent Landscape Report—Generative Artificial Intelligence
According to the DoD’s report on Defense Spending by State in Fiscal Year 2023, of the total $609.2 billion appropri- ated, DoD obligated $431.4 billion through contracts for products and services. Given the scale of DoD contracts, using AI could improve the speed and efficiency of the acquisition process and yield significant savings. The process from the initial concept of a project to the final contract is complex and lengthy and traditional acquisitions can take
DEFENSE ACQUISITION | May-June 2025
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