FY 2023 Fourth Estate Investment in Artificial Intelligence

Published: May 25, 2022

Federal Market AnalysisArtificial Intelligence/Machine LearningBudgetDEFENSEForecasts and Spending

Fourth Estate budgets for AI/ML-related programs hold steady.

Support agencies across the Department of Defense are funding projects leveraging Artificial Intelligence (AI) and Machine Learning (ML). An analysis of the DOD’s Research, Development, Test, and Enhancement (RDT&E) and Procurement budget requests for FY 2023 reveals that 4th Estate agencies have requested $2.4B for programs with an AI/ML component.

AI and Machine Learning in the Defense-Wide FY 2021-2023 R&D Budget

Requested funding for AI/ML-related programs is spread across an array of the combat support agencies at the DOD. Even the Washington Headquarters Service requested $1.0M related to AI/ML in fiscal 2021.

Here’s the picture by budget activity.

As we can see, the data shows only modest increases in FY 2023 vs. the budgets received for programs with AI/ML-related work in FY 2021.

AI/ML Investment by Defense Agency, FY 2021-2023 R&D Budget

Displaying the data by agency provides a little more understanding which agencies requested more funding for AI/ML-related projects in FY 2023 vs. the funding they received in FY 2021.

Organizations that requested more funding include the Office of the Secretary of Defense (+$86M), U.S. Special Operations Command (+$55M), the Defense Threat Reduction Agency (+$48M), and the Chemical and Biological Defense Program (+$69M).

A couple of organizations also requested significantly less funding than in FY 2021. These include the Missile Defense Agency (-$159M), the Defense Information Systems Agency (-$119M), and the Defense Logistics Agency (-$14M).

Largest AI/ML-related programs by Requested Budget

OSD Chief Digital and Artificial Intelligence Officer (CDAO) - Demonstration/Validation Activities ($273.3M): Establishes the CDAO to lead and oversee the DOD’s strategy development and policy formulation for data, analytics, and AI. Breaks down barriers to AI adoption within DOD institutional processes. Creates digital infrastructure and services that support the development and deployment of data, analytics, AI, and digital-enabled solutions by DOD components. Integrates capabilities, personnel, resources, and governance.

DARPA Artificial Intelligence and Human-Machine Symbiosis ($193.2M): This project develops technologies that enable machines to function as trusted partners for human operators. Of particular interest are systems that can understand human speech and extract information contained in diverse media.

DTRA Counter Weapons of Mass Destruction Applied Research ($192.1M): This project develops concepts and technologies in the areas of high-speed information processing, modeling and simulation, signal detection, and data-driven decision analysis.

DARPA Cyber Security ($183.8M): Leverages AI/ML capabilities to automate and improve DOD cyber security processes and posture.

US SOCOM Advanced Technology Development/SOF Special Technology Project ($84.5M): A program for integrating emerging technologies, such as AI/ML, and presenting them in technology demonstrations.