Federal teams spent the past year testing artificial intelligence (AI) applications, measuring return on investment, and separating hype from reality. These teams identified where AI delivers results and where it falls short, gaining the experience needed to drive real transformation. Earlier this year, the White House AI Action Plan called on the U.S. Department of Defense (DoD) to aggressively adopt AI across functions from the battlefield to back-office operations, thereby signaling the government's commitment to moving beyond experimentation.

The year ahead marks a pivotal shift from experimental pilots to deployed solutions that fundamentally reshape how government serves citizens. Defense agencies enter 2026 with proven strategies and readiness to act, positioning AI to deliver its most significant impact yet on core government missions.

Three transformations will define this evolution: breaking through decades-old modernization barriers, shifting from reactive to proactive cybersecurity, and democratizing software development beyond traditional IT departments. Each builds on the others to create compounding returns across government operations.

Scaling AI-enabled modernization across government

Federal modernization efforts have historically faced serious implementation challenges. AI technology now enables agencies to overcome these barriers and achieve transformation at scale.

For example: AI refactoring tools bridge programming language generations, converting legacy COBOL and Fortran applications into contemporary, sustainable code while maintaining essential business logic. These systems simultaneously detect security weaknesses, verify compliance requirements, and produce documentation during modernization workflows.

Legacy IT infrastructure and outdated code cost governments hundreds of millions of dollars annually in maintenance and operational expenses. The traditional processes for retiring these systems, particularly code refactoring, consume extensive time and resources while resisting scalable approaches. AI technology transforms these modernization challenges into manageable opportunities.

System modernization timelines will compress from multi-year endeavors to concentrated quarterly initiatives. Organizations embracing AI-driven approaches will accelerate system updates by 10 times, redirecting resources from maintenance activities toward innovation priorities.

Building proactive security through AI intelligence

Today's sophisticated nation-state bad actors leverage AI tools that identify and exploit vulnerabilities faster than human security professionals can implement patches. Throughout 2026, AI-powered defensive systems will emerge as the most effective strategy for preventing security breaches.

Defense agencies without proactive AI security measures will find themselves consistently outpaced by well-funded adversaries. Organizations that successfully orchestrate proactive AI security frameworks will demonstrate notably reduced breach frequencies and enhanced response capabilities, and will create new performance standards for government cybersecurity programs.

Expanding development capabilities government-wide

AI technology democratizes software creation for the DoD, extending development skills to all team members, regardless of their training. Human ingenuity powers innovative problem resolution while AI manages complex technical execution.

This trend is accelerating rapidly, with 89% of leadership anticipating that agentic AI will become standard practice for software development within three years. This capability expansion enables software creation across every government function. By leveraging AI, subject-matter experts, policy professionals, and administrative staff can develop applications and streamline processes without conventional coding expertise. This approach multiplies government development resources exponentially, as domain specialists transform their specialized knowledge into working software applications.

Moreover, AI-enabled development environments automatically enforce security protocols and compliance frameworks, enabling agencies to cultivate development expertise across all organizational units rather than limiting it to IT departments.

Amplifying results through integrated AI strategy

Defense agencies that embrace human-AI collaboration across modernization, security, and development initiatives will create high-performing teams that merge technical capabilities with mission-focused expertise. This integration produces results that neither human teams nor AI systems could accomplish independently.

Defense organizations must treat these three areas as interconnected strategic investments that advance together. Each capability reinforces and accelerates progress in the others, enabling agencies to deliver secure software faster while upholding rigorous standards.

Early adopters will establish performance benchmarks for government-wide adoption. Most significantly, they will demonstrate that meaningful transformation can occur within months, not years.

By Bob Stevens, VP of Americas and Public Sector at GitLab.

GitLab · https://about.gitlab.com/