Modernizing the Mission: AI, Efficiency, and Cybersecurity at the Pentagon

Original broadcast 8/3/25

Presented by Carahsoft

Katie Arrington, Performing the Duties of the Chief Information Officer at the Department of Defense, is leading one of the most ambitious modernization efforts in the Pentagon’s history. Her goal is clear: reduce inefficiencies, collapse redundant systems, and strengthen the security of the defense industrial base—all while preparing the department to pass a clean audit by 2027. In her conversation on Fed Gov Today, Arrington explains how the DoD is using artificial intelligence and deep inter-agency collaboration to fundamentally change how the department manages its vast network of business systems.

At the heart of this transformation is a stark statistic: the Department of Defense has historically operated over 1,800 separate business systems, many of them duplicative, disconnected, or outdated. That fragmentation imposes unnecessary burdens on both the taxpayer and the warfighter. “Behind every weapon system,” Arrington says, “is a business system. And if that business system is inefficient, then everything downstream slows down.”

To address this, the DoD is deploying AI and large language models to map business processes, identify redundancy, and standardize how systems interact. The aim is to consolidate these platforms into a single framework called Urbana, a unified architecture that provides leadership with a clear, real-time view of financial and operational data. Already, the department has shut down 84 systems this year alone.

Arrington’s long-term vision is to reduce the number of core business systems to just two per service. That vision is made possible by a new culture of collaboration inside the Pentagon. She works closely with key leaders across the enterprise—including the Comptroller, the Chief Digital and Artificial Intelligence Office, and CAPE—to ensure decisions are made holistically, not in silos. Weekly meetings among service CIOs, coupled with cross-functional review boards, are helping ensure business rules and technical requirements are aligned across the department.

This same spirit of reform is driving changes in cybersecurity. Arrington continues to lead the charge for the Cybersecurity Maturity Model Certification (CMMC), stressing that compliance with NIST 800-171 remains essential to securing the defense supply chain. While small businesses have historically struggled to meet these requirements, Arrington believes that advances in AI and cybersecurity-as-a-service have made compliance faster and more affordable than ever. “A company with fewer than 20 people can now get to certification in under two months and for less than $15,000,” she says.

To make it even easier for small businesses to stay competitive, Arrington is proposing a cybersecurity-focused SBA loan program. If implemented, it would provide contractors with access to funds that could offset the cost of meeting federal security requirements—ensuring that small firms are not left behind as cyber threats grow more complex.

For Arrington, all of this work—from collapsing systems to modernizing cybersecurity—is about increasing lethality, improving readiness, and delivering value to both the warfighter and the American taxpayer. “We are one team, one fight,” she says. “And the more efficient we are, the more effective we are.”

Key Takeaways

• The DoD is using AI to streamline business operations and consolidate over 1,800 systems into a unified platform.

• Strong inter-agency collaboration is enabling faster, more aligned decision-making across finance, data, and IT leadership.

• Scalable compliance tools and proposed SBA support could make cybersecurity standards more achievable for small contractors.