The Federal AI Market is Large - But Where You Fit Depends on Agency Maturity
We recently conducted a webinar with Carahsoft where we analyzed the federal market for artificial intelligence. The discussion wasn’t based on general market narratives or high-level strategy it was grounded in something much more practical: the AI use cases that federal agencies are required to publish.
These inventories, driven by policies such as Executive Order 13960 and the Advancing American AI Act, provide a directional view into where AI is actually being deployed across government.
Navigating the Federal AI Landscape: Roadmaps, Strategies, and Opportunity for Vendors
AI adoption across the U.S. Federal Government is accelerating, bringing new priorities, funding opportunities and buying pathways. Stay competitive by understanding where agencies are investing in AI, how they plan to buy it and what vendors need to know to align with current government requirements.
Webinar recording from March 24, 2026
The Pentagon’s Drone Push is Creating a Massive Technology Market
The U.S. government’s push to rapidly expand drone capabilities is creating one of the most significant emerging technology markets in defense and national security. But the opportunity goes far beyond building drones.
It includes AI, software, autonomy, communications, sensors, manufacturing, and supply chain infrastructure and for many technology companies, those layers represent the real entry point into the market.
The New Rules for Selling AI to the U.S. Government
The federal government is shifting from AI experimentation to AI procurement, and that shift requires something very different: rules governing how AI systems interact with government data, infrastructure, and decision-making processes.
A recently released draft clause from the General Services Administration titled “Basic Safeguarding of Artificial Intelligence Systems” provides one of the clearest signals yet of what those rules will look like.
Selling Software, AI and Digital Platforms into the Department of War’s New Acquisition Model
The Department of War’s (DoW) newly released Acquisition Transformation Strategy marks the most consequential shift in defense buying in decades and it is being designed explicitly to unlock commercial technology at speed. While headlines focus on weapons and platforms, the real transformation is in how DoW intends to acquire software, data, AI, cyber, autonomy, digital infrastructure and mission applications across the enterprise.
Webinar recording from February 25, 2026
Preparing for OMB PQC Reporting: A Practical Framework for Federal Agencies
Federal agencies are now required under OMB Memorandum M-23-02 and National Security Memorandum-10 to inventory cryptographic assets, identify quantum-vulnerable algorithms and report progress toward post-quantum cryptography (PQC) readiness. Yet many agencies are unsure what these mandates actually require in practice, how discovery and inventory tools fit into compliance or how to determine whether their current environments provide sufficient cryptographic visibility.
Webinar recording from February 19, 2026
Start Small. Prove Fast. Scale Deliberately. Why Software Vendors Must Rethink Packaging Under the Warfighting Acquisition System
For years, selling software into the federal government often meant pursuing a large program opportunity, negotiating a broad deployment, and structuring a multi-year agreement from the outset. Even when pilots were used, they were often treated as stepping stones toward immediate enterprise adoption.
Quantum Sensing Market Overview
Quantum sensing is post feasibility but pre-scale. The market is moving from RDT&E into transition activity, characterized by operationally relevant testing, platform integration pilots, and limited early procurements rather than broad programs of record. Progress toward production is gated less by performance claims than by repeatability in operational environments, SWaP-C (Size, Weight, Power, and Cost) and environmental qualification, integration burden (hardware and software), and a credible sustainment path. As a result, the near-term market is defined by funded validation and transition efforts that precede wider production adoption. Platform manufacturers including UAV and UUV OEMs typically engage as downstream adopters once government-funded programs have materially reduced integration and performance risk.
The Portfolio Manager Is New and It Changes How Software Vendors Must Scale Inside DoW
This post is Part Two of a Marion Square blog series examining the Department of War’s shift to the Warfighting Acquisition System and what it means for commercial technology vendors.
The new acquisition strategy responds to this reality by introducing something DoW did not previously have in a formal, empowered way: portfolio level ownership of digital and software capabilities.
That is where the new Portfolio Manager role comes in.
How to Make Your Federal Tech Marketing Count
One thing is clear these days: the federal tech landscape is not standing still. Agencies are under more pressure to justify spend, defend outcomes, and align investments directly to mission objectives. Whether you are sharpening your federal messaging or entering the space for the first time, the rules of engagement are shifting.
HHS Artificial Intelligence Strategy → FY26 Budget Alignment
The Department of Health and Human Services (HHS) has published a comprehensive Artificial Intelligence Strategy outlining how AI will be governed, deployed, and scaled across healthcare delivery, public health, and research.
While the FY 2026 HHS Budget does not create a single “AI program,” it does fund the strategy in practice through investments in technology modernization, data infrastructure, public health analytics, digital health, and research systems.
The Warfighting Acquisition System: What the Biggest Shift in DoD Buying Means for Technology Companies
Last week’s release of Transforming the Defense Acquisition System into the Warfighting Acquisition System is likely the most consequential change in defense acquisition policy in decades and it sends a very clear message to the industrial base, startups, and commercial vendors:
Speed, modularity, and mission impact now outrank process, compliance, and tradition.
For companies building AI, cybersecurity, PQC, quantum, edge compute, cloud, analytics, sensors, or advanced manufacturing technologies, this is not just a policy update.
It’s an open door.
Funding Uncertainty, Clear Opportunity: Navigating the FY 26 Federal Budget Maze
The headlines are all about gridlock: the Senate racing to pass a three-bill “minibus,” the House waiting for the green light, and another short-term continuing resolution (CR) keeping the lights on only through January 30. It’s tempting to read this as a signal for technology companies to pause their government efforts.
That would be a mistake.
While Washington wrestles over process, the underlying mission priorities driving government IT, cybersecurity, and AI investments haven’t changed. Agencies are still under binding mandates from Zero Trust and post-quantum encryption to AI governance and data modernization that require continued action regardless of the budget dance on Capitol Hill.
At Marion Square, we see this as one of the best times to be positioning for growth.
Navigating Government Shutdowns: A Contractor’s Guide with Marion Square
When Congress fails to pass funding legislation, the federal government officially shuts down. For federal contractors, a shutdown introduces a period of significant uncertainty, affecting ongoing projects, payment schedules, and future business opportunities.
FY26 is Around the Corner: Why Tech Companies Need to Act Now to Win in Government
The federal government’s FY26 budget cycle begins October 1st, and agencies are already shaping acquisition plans. Billions are being directed toward AI, cybersecurity, post-quantum readiness, infrastructure, and defense making this one of the largest opportunities yet for technology companies
Whether you’re already working with federal agencies or just starting to explore the market, the message is clear: the time to act is now.
How and Why Crypto Posture Management Is Indispensable for Quantum-Ready Zero Trust Architectures
Many organizations make the mistake of treating quantum readiness and the deployment of a Zero Trust Architecture (ZTA) as distinct initiatives. In this webinar, ISARA and Marion Square discuss the connections between these two undertakings and explain why having a strong cryptographic posture management program is indispensable to adopting a Quantum-Ready ZTA.
Webinar recording from August 12, 2025
The Senate Proposes National Quantum Cybersecurity Strategy: What It Means for Your Organization
On August 6, 2025, Senators Gary Peters (D-MI) and Marsha Blackburn (R-TN) introduced bipartisan legislation that could significantly accelerate the nation’s migration to post-quantum cryptography (PQC). The bill, known informally as the National Quantum Cybersecurity Strategy Act, underscores a growing federal urgency: quantum computing is no longer just a research milestone it’s a looming cybersecurity disruptor.
For technology providers, government contractors, and agencies alike, this legislation represents both a challenge and a market defining opportunity.
Post-Quantum Discovery & Inventory: Navigating Options for Compliance and Action
As federal agencies accelerate their timelines for post-quantum encryption (PQE) readiness under NSM-10, OMB M-23-02, and forthcoming FIPS 140-3 mandates, a foundational requirement is completing a comprehensive cryptographic inventory and discovery process. However, how agencies get there and what tools or partners they use can vary widely. In this timely webinar, co-hosted by Marion Square and Square Peg Technologies, we broke down the evolving landscape of PQE inventory requirements and provided a practical guide to the approaches agencies are taking to meet them.
Webinar recording from July 24, 2025
The Federal Government Is Spending-Here’s How to Position for FY26 Funding Now
If you're in AI, cybersecurity, infrastructure, or defense tech and still sitting on the sidelines of the federal market, now is the time to move. A recent Financial Times article called attention to the surge of interest and investment in defense tech start-ups. But the trend goes far beyond drones and weapons systems. It’s a signal that the U.S. government is actively buying, planning, and modernizing and the window for engaging in FY 26 is already open.
FY26 Budget Status: What You Need to Know
As of July 21, 2025, the federal Fiscal Year 2026 budget has not been fully passed. While both chambers of Congress have made substantial progress on individual appropriations bills, the complete budget package awaits final approval. FY2026 officially began on October 1, 2025, creating pressure for lawmakers to finalize funding or resort to temporary measures.