Driving Efficiency in Defense Business Systems with AI

Original broadcast 8/19/25

Presented by Carahsoft

The Department of Defense operates a vast network of business systems — more than 1,800 in total — supporting everything from personnel management to procurement. While each plays a role in enabling the mission, this sprawling landscape creates inefficiencies, redundancies, and unnecessary costs. Katie Arrington, Performing the Duties of the Chief Information Officer (PTDO CIO) at the Department of Defense, is leading an ambitious effort to streamline these systems with the help of artificial intelligence.

Arrington chairs the Defense Business Council, the body charged with aligning business processes and consolidating systems. The goal, she says, is clear: reduce the number of systems to a manageable level, ensure they can work together seamlessly, and be fully audit-ready by 2027.

“Behind every weapon system — the tip of the spear — is a business system,” Arrington explains. “If we’re not using AI to align business rules and improve interoperability, we’re missing an opportunity to make the department more efficient and to get resources to the warfighter faster.”

Thanks to congressional support and the Department’s Chief Digital and Artificial Intelligence Office (CDAO), new AI tools are being deployed to analyze business processes, identify common requirements, and determine where systems can be merged. The process is data-driven: AI evaluates which capabilities are essential, and anything that falls outside of that “core box” must be reviewed by a board to decide whether it’s truly necessary.

This effort has already delivered results. In the past year alone, 84 business systems have been retired, freeing up funding and manpower for higher-priority needs. In some cases, Arrington notes, unique missions like special operations require dedicated systems, but for the most part, Army, Navy, Air Force, Marine Corps, and Space Force procurement can be aligned.

A key principle of the initiative is interoperability, with all systems feeding into Urbana — a unified platform that provides a complete view of financial and operational data. This “single pane of glass” allows leaders to answer complex questions, like total spending on a given capability, with just a few clicks.

Arrington emphasizes that collaboration is central to this transformation. The CIO’s office works hand-in-hand with the Comptroller, the Office of Cost Assessment and Program Evaluation (CAPE), and the services’ own CIOs to ensure new rules meet everyone’s needs. Weekly meetings, a shared playbook, and open discussion of challenges have created what she calls “one team, one fight.”

For Arrington, the work is about more than just cutting systems — it’s about creating a modern, agile business environment that can keep pace with the needs of the warfighter. By combining AI-driven analysis with a culture of collaboration, she believes the Department can meet its audit goals, save taxpayer dollars, and ensure resources are where they matter most.

Key Takeaways:

• The DoD is using AI to consolidate over 1,800 business systems and achieve audit readiness by 2027.

• A unified platform, Urbana, will provide leaders with real-time visibility into financial and operational data.

• Close collaboration across offices ensures interoperability and efficiency while meeting mission needs.

Watch the full episode at InnovationInGov.com