AI and Analytics Elements in DOD's First National Defense Industrial Strategy

The recently released National Defense Industrial Strategy (NDIS) aims to address the economic, technological, and geopolitical challenges that hinder the defense environment in improving cost, speed, and scale of national security operations. Specifically, the purpose of the NDIS is to “drive development of an industrial ecosystem that provides a sustained competitive advantage to the United States over its adversaries,” according to the strategy’s 60 page document.

The NDIS is meant to reach beyond traditional defense contractors and subcontractors, and include new technology companies, academia, research labs, technical centers, service providers and various financial streams.

The strategy touts four priorities and associated actions under each to modernize the defense industry landscape: resilient supply chains, workforce readiness, flexible acquisition, and economic deterrence. Understandably, the strategy outlines several ways analytics and AI solutions can help meet these objectives and action items.

2.1.2.3 Continue and Expand Support for Domestic Production.

The section describes the necessity of DOD organizations such as the Defense Innovation Unit (DIU) to accelerate and scale development of innovative technologies such as autonomous systems, quantum computing and artificial intelligence. The strategy commits to providing the required length of research, development, and testing of such technologies by providing access to follow-up funding, business development opportunities, and mentorship. The intended outcome would be to increase the number of new suppliers doing business with DOD.

2.1.2.5 Leverage data analytics to improve sub-tier visibility to identify and minimize strategic supply chain risks and to manage disruptions proactively.

DOD is committed to using data analytics to gain greater supply chain visibility, as well as improve the sharing of supply chain risk indicators across DOD and other federal agencies. The intent is to increase bottleneck identification with improved sub-tier supply chain visibility and establish better methods to identify supply chain risk indicators with private industry.

2.3.2.1 Broaden Platform Standards and Interoperability

To optimize acquisition practices, DOD is turning to open architecture for its systems to increase modularity and improve capacity to integrate new technologies across different systems. The department describes investing in additional research and development to increase interoperability among platforms, including the R&D of communication technologies, data analytics, and AI.

Final thoughts: In addition to the elements cited above, DOD intends to focus extra investment in AI-powered predictive capabilities to overcome technological challenges. Given the goal of the NDIS, DOD is set to invest in additional small- and medium-sized businesses, zeroing in on U.S. innovation to strengthen warfighting and other national security capabilities. While some sources the long-term nature of achieving the outcomes stated by the NDIS, the document does offer hopes of improving acquisition practices, broadening partnerships and boosting investment in innovation in the DOD marketplace.