US Federal News Bureau
Around $150 million will support the modernization of legacy business systems.
Written by: CDO Magazine Bureau
Updated 12:38 PM UTC, Wed July 9, 2025
The Pentagon’s $1.01 trillion FY 2026 defense budget request includes a record $13.4 billion investment in artificial intelligence (AI) and autonomy — marking the first time the Department of Defense (DoD) has allocated a dedicated budget line for these capabilities.
Unveiled by senior officials, the proposed budget outlines targeted funding across unmanned systems and AI integration. Of the $13.4 billion, $9.4 billion is earmarked for aerial drones, $1.7 billion for maritime autonomous platforms, $734 million for underwater systems, $210 million for autonomous ground vehicles and $1.2 billion for software and cross-domain integration.
Additionally, $200 million is allocated for AI and automation technologies, and $150 million will support the modernization of legacy business systems to help the DoD achieve an unmodified audit opinion by the end of 2028.
Officials emphasized that these investments are critical for maintaining a strategic edge in autonomous warfare and operational efficiency.
While the broader budget also supports space and cybersecurity efforts, AI is increasingly viewed as a pillar of future military readiness.
The proposed budget faces congressional hurdles — particularly regarding its reliance on unapproved reconciliation funding — but Pentagon leaders remain optimistic about securing bipartisan support.