In October of 2023, the Biden Administration issued an Executive Order aimed at securing the United States’ leadership in the development and deployment of artificial intelligence while ensuring this technology is used responsibly to protect individual privacy and data. This landmark order sets new standards for AI safety and security, upholds Americans’ privacy, promotes equity and civil rights, safeguards consumers and workers, encourages innovation and competition, and reinforces American leadership on the global stage.

As quantum computing continues to evolve, the security of existing cryptographic systems faces an unprecedented threat. Post-quantum encryption (PQE) is no longer a distant goal; it is a critical, urgent priority. Marion Square has been actively tracking the federal government’s transition to PQE, working closely with both technology companies and government agencies to ensure a smooth and secure transition.

Federal mandates such as NSM-10 and OMB 23-02 have set the course for agencies to begin their PQE journeys. The stakes are high, and failure to meet these mandates could expose critical systems to quantum-enabled adversaries. According to the recent OMB report to Congress, the government is expected to spend approximately $1 billion annually over the next decade on this transition, though many experts predict the true cost could be much higher.

Marion Square is actively working with our partners and clients to understand and map the requirements Federal Agencies have for transitioning to Post Quantum Encryption (PQE). For PQE technology companies, this transition presents a unique opportunity: a growing market with billions in potential federal contracts. 

Marion Square is continually researching Government initiatives and programs to identify key opportunities for our clients.  For those organizations that are focused on providing AI algorithms, infrastructure, and services an interesting, potential opportunity for FY 25 is the Dept of Energy’s (DOE) -Frontiers in Artificial Intelligence for Science, Security, and Technology- or FASST initiative.

As Artificial Intelligence (AI) becomes an engine driving innovation across industries, its role in the Federal government is accelerating at an unprecedented pace. With FY 2025 federal funding poised to fuel AI initiatives across all agencies, it’s clear that AI has transcended from being a technological trend to a national priority.

Understanding and strategically leveraging this tiered structure will be crucial for companies looking to accelerate their go-to-market (GTM) strategies and secure contracts that matter.

With the recent release of the NIST Post Quantum Encryption (PQE) standards (NIST Releases First 3 Finalized Post-Quantum Encryption Standards | NIST) we at Marion Square anticipate there will be a focus from Federal Agencies in FY 25 to become compliant with the White House Executive Order and National Security Memo for Post Quantum Cryptography.