The $92 Billion Federal AI Gold Rush: Why Your "One-Size-Fits-All" GTM is Failing
At Marion Square we have been following the Federal AI market very closely, not that the FY 27 Budget Requests have been released, I wanted to share some perspective for both our AI vendor partners and the market in general.
The federal AI market in 2026 is no longer a playground for speculative pilots; it has transformed into a massive, operational machine. For vendors, the opportunity is staggering: potential award values for AI contracts have surged to nearly $92 billion, a nearly 2,000% increase from just two years ago.
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.
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
Unlocking Federal Markets: Why Data-Driven Technology is Essential for Government Agencies in FY 25
The integration of artificial intelligence (AI) into federal operations is a cornerstone of government technology priorities for Fiscal Year 2025. At Marion Square, we’ve been closely tracking the federal AI market and uncovering significant trends that indicate where technology investments are heading.
Navigating FY25: How AI Companies Can Capitalize on US Government Priorities
The US Government’s increasing investment in AI represents an unprecedented opportunity for companies willing to align with its strategic priorities. While the road to adoption may vary between agencies, a deep understanding of priorities such as infrastructure, national security, ethics, R&D, and workforce development can set your company up for success in FY25.
The New Phase of AI Governance: Update on AI Executive Order 14110
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.
Market Update: Artificial Intelligence
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.
Unlocking Federal AI Opportunities in FY 2025: Navigating the Two-Tiered Approach to Maximize Success
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.
The Government’s Growing Demand for OSINT, and what you need to know
In today’s session we want to discuss Open Source Intelligence market, how this market has changed with the introduction of social media and more recently AI, and some of the key areas Government is seeking assistance to help with their OSINT programs. We will also review the key resources that Carahsoft and Marion Square has to offer in this expanding market.
Webinar Recording from 3/26/24