The U.S. Department of War (DOW) is embarking on a sweeping transformation aimed at establishing itself as an “AI-first” warfighting force. Announced through a series of memoranda on , followed by a speech from Secretary Pete Hegseth on , the initiative signals a fundamental shift in how the DOW approaches technology, acquisition, and innovation. The core principle: speed, mirroring a “wartime” tempo rather than a peacetime research and development cycle.
The DOW’s strategy, heavily influenced by Executive Order 14179 and America’s AI Action Plan, isn’t simply about integrating AI into existing workflows. It’s about fundamentally redesigning those workflows, processes, and operational concepts to leverage the capabilities of modern AI. The emphasis is on rapid experimentation with leading commercial AI models, removing bureaucratic obstacles, and focusing investment on areas where the U.S. Holds a competitive advantage – compute power, model innovation, capital markets, and operational data.
Pace-Setting Projects: A Wartime Approach
At the heart of this transformation are seven “Pace-Setting Projects” (PSPs) spanning warfighting, intelligence, and enterprise missions. Each PSP has a single accountable leader, aggressive timelines, and requires monthly reporting to the Deputy Secretary of War and the Chief Technology Officer (CTO). These projects aren’t theoretical exercises; they are designed to deliver tangible results quickly.
Within the warfighting domain, “Swarm Forge” aims to pair elite military units with technology innovators to rapidly discover and scale new AI-enabled tactics. “Agent Network” focuses on developing AI agents for battle management and decision support, from campaign planning to execution. “Ender’s Foundry” seeks to accelerate AI-enabled simulation capabilities, creating tighter feedback loops between simulation and real-world operations.
On the intelligence front, “Open Arsenal” aims to drastically shorten the timeline for turning intelligence into actionable weapons – from years to hours. “Project Grant” explores using AI to transform deterrence strategies, moving beyond static postures to dynamic, data-driven assessments. Enterprise-level PSPs include “GenAI.mil,” providing department-wide access to frontier generative AI models for approximately three million personnel, and “Enterprise Agents,” focused on rapidly deploying AI agents to transform internal workflows.
Data Access and Infrastructure: Breaking Down Silos
A critical component of the DOW’s AI strategy is dramatically improving data access, and infrastructure. The department intends to substantially expand AI compute infrastructure, extending it from centralized data centers to tactical “edge” environments. Crucially, the DOW is enforcing the “DOD Data Decrees,” establishing federated data catalogs and granting the CDAO the authority to release data to cleared users with a valid purpose, requiring justification for any denials to the Under Secretary of War for Research and Engineering (USW(R&E)).
This push for data accessibility is coupled with a restructuring of the Advana Program – the DOW’s enterprise data and analytics platform. Advana is being reorganized into three components: the WDP Program Team (expanding core data integration), the Advana for Financial Management Program Team (focused on audit compliance), and the WDP Application Services Program Team (rationalizing existing applications and supporting new integrations). The goal is a centralized platform with standardized data pipelines and built-in audit controls.
A Unified Innovation Ecosystem
The DOW is also consolidating its innovation efforts under a single CTO, the USW(R&E). This involves dissolving existing groups like the Defense Innovation Steering Group and establishing a new CTO Action Group (CAG) to set technical direction and remove bureaucratic roadblocks. The restructured ecosystem comprises the Defense Advanced Research Projects Agency (DARPA), the CDAO, the Test Resource Management Center (TRMC), the Office of Strategic Capital (OSC), the Defense Innovation Unit (DIU), and the SCO (Strategic Capabilities Office).
DIU will focus on “commercial product innovation,” adopting and transitioning technologies developed outside the DOW. SCO will concentrate on “operational capability innovation,” fielding disruptive applications of existing systems and near-term technologies. This structure aims to streamline the process of bringing new capabilities to the warfighter.
Implications for Defense Contractors
These changes have significant implications for defense contractors. The DOW is signaling a shift in evaluation standards, prioritizing speed, measurable performance, and integration-readiness over traditional metrics. Contractors should anticipate solicitations that emphasize the ability to deliver and update AI capabilities quickly, plug into DOW data and platform architectures, and demonstrate mission impact in operational use.
Specifically, contractors will need to adapt to new expectations around AI model updates (deploying the latest models within 30 days of public release), objective model benchmarks, and “any lawful use” language in contracts. The emphasis on modular open architectures (MOSA) and standardized data access will require vendors to expose interfaces and schemas, facilitating third-party integration. Contractors should prepare for faster development and deployment cycles, continuous field experimentation, and a greater reliance on flexible acquisition vehicles like Other Transaction Agreements.
The DOW’s actions collectively point toward a procurement environment that rewards agility, innovation, and a willingness to operate at a “wartime” tempo. Companies that can align their technical roadmaps, internal governance, and intellectual property strategies with this new paradigm will be best positioned to succeed. The message is clear: speed, experimentation, and demonstrable impact are now paramount.
