AI/ML Federal Market Overview
Market Highlights:
Large budgets for AI/ML research and development programs continue in FY24
Focus areas include: Data Analytics, Computer Vision, and Cyber Security
While almost every agency has an AI initiative the: DoD, DOE, DOT, NSF, and HHS all have proposed AI R&D budgets of $750M+ for FY24
The FY24 budget includes $210B for federal research and development (R&D), this is the largest ever investment for Federal R&D. (FACT SHEET: President Biden’s 2024 Budget Invests in American Science, Technology, and Innovation to Achieve Our Nation’s Greatest Aspirations | OSTP | The White House)
Artificial Intelligence R&D is a main focus area for FY 24 investment with several agencies requesting $1B to fund AI research projects and programs in areas such as:
Facial recognition technology
Drone systems
Systems to analyze large amounts of data
Cyber Security
Department of Defense:
The DoD is by far the big winner in the Presidents FY24 AI budget requesting $1.8B specifically for AI. According to the Pentagon, that money “supports efforts to deliver and adopt responsible AI/ML-enabled capabilities on secure and reliable platforms. Workforce development, and DOD-wide data management and modernization efforts”. The $1.8B budget request is a $600M increase in funding compared to FY 23.
In FY22, the DoD stood up the Chief Digital and Artificial Intelligence Office (CDAO) CDAO - Chief Digital and Artificial Intelligence Office (ai.mil). The CDAO was formed by the integration of the DoD's Joint Artificial Intelligence Center (JAIC) and Defense Digital Services. The CDAO is responsible for acceleration of the DoD's adoption of data, analytics and AI to generate advantage from the boardroom to the battlefield.
The CDAO performs several critical functions in close coordination with the Services, Joint Staff, CIO, USD (R&E), and other digital leaders:
Lead the Department’s strategy and policy on data, analytics, and AI adoption, as well as govern and oversee efforts across the Department.
Enable the development of digital and AI-enabled solutions across the Department, while also selectively scaling proven solutions for enterprise and joint use cases.
Provide a sophisticated cadre of technical experts that serve as a de facto data and digital response force able to address urgent crises and emerging challenges with state of the art digital solutions.
Key AI focus areas include:
Cyber Security: to explore and implement new applications of artificial intelligence as part of its larger charge to build resilience in the cyber and space domains and across the entire defense ecosystem.
Unmanned Platforms and Autonomous Weapons Systems: to help ensure that the US can remain on the cutting edge not only of developing and deploying new systems, but also safety. DOD will continue to study advancements in related technology, including artificial intelligence.
Analytics/Decision Making: Defense Department is not where it needs to be in its exploitation and analysis of the data. Part of the CDAO's [chief digital and artificial intelligence officer] mandate will be to change that.
Department of Homeland Security:
The President’s FY24 proposed DHS budget includes funding to develop and deploy AI enabled capabilities supporting a wide range of DHS missions including technologies for detecting and preventing illegal immigration, cybercrime, and terrorism.
Key DHS AI Programs include: DHS FY 2024 Budget in Brief (BIB)
Intelligence Data Environment for Analytics (IDEA)- IDEA will enable intelligence analysts to apply advanced analytics including artificial intelligence and machine learning to rapidly identify, assess, and disseminate timely, high-quality intelligence products to the Intelligence Community. ($24.5M FY24 funding request)
S&T Technology Centers- conduct research to ensure emerging technologies and scientific advancements are harnessed for cutting edge solutions for homeland security operational challenges and ensures technical SME capabilities are available for decision making. ($64M for AI, Analytics, and Quantum Research- FY24)
Detection Science Testing and Applied Research Center (DSTAR)- The DSTAR Center will advance detection science by providing modern computational infrastructure for analyzing and archiving threat images from computed tomography and millimeter wave threat screening devices and by incorporating more effective use of machine learning, artificial intelligence, and other advanced techniques. ($35M FY24 funding request)
Department of Transportation (DOT)
The FY24 budget includes more than $1 Billion in program and R&D funding for AI programs within the DOT. Funding would be used to develop and deploy AI-enables capabilities throughout the DOT. The ITS Joint Program Office (JPO) heads many of the DOT related AI research programs. ITS JPO was created to research AI as a priority area to accelerate adoption of AI by state and local agencies for addressing transportation problems. DOT AI programs include:
Digital System Safety Program: supports research on the application of advanced digital technologies such AI/ML in safety-critical aircraft systems to enable increasingly efficient and safe flight management.
EAR Program: is exploring the development of artificial intelligence and machine learning technology within the surface transportation sector conducting cutting-edge research in these fields, FHWA ultimately seeks to make surface transportation safer and more efficient
Transit Operations Management: includes applications that make use of AI to address the management, operations, maintenance, and security of public transportation and mobility services to meet the demands of users and operate an efficient and integrated mobility system
Department of Health and Human Services (HHS)
HHS plans to invest heavily in AI/ML research, projects, and programs in FY24 with more than $1B in AI related funding being requested. Funding will be utilized to develop and deploy AI enabled capabilities across the entirety of HHS for projects ranging from AI tools for treating disease, monitoring public health threats and testing and approving medical products.
Key Program Highlights:
US Food and Drug Administration (FDA): wants to begin leveraging AI and ML in its drug development and approval processes.
Centers for Disease Control (CDC): multiple programs targeting AI/ML ranging from improving speed and accuracy of disease detection to predicting a disease outbreak to discovering patterns in clinical data and identify predictors for clinical outcomes.
Centers for Medicare and Medicaid (CMS): funds programs in 4 main subfields of AI- Machine Learning, Robotics, Computer Vision and Natural Language Processing (NLP).