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Information Services Group Report Shows Public Sector Adoption of AI Against Cyberthreats
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Headshot of Nathan Frey, an ISG partner. Frey comments on the new ISG report on cybersecurity

Information Services Group, or ISG, has warned that agencies at the federal, state and local levels face increasingly sophisticated cyberthreats. To strengthen security, the government is adopting advanced technologies, such as artificial intelligence, to mitigate cyberattacks, the research and advisory firm revealed in its new report.

The 2025 ISG Provider Lens Cybersecurity — Services and Solutions report assessed the cybersecurity trends that impact the U.S. public sector. It is part of ISG’s Provider Lens Quadrant research series, which extracts insights from empirical and data-driven research and market analysis combined with real-world observations.

What ISG Found

According to the report, the convergence of information and operational technologies in supply chains and critical infrastructures creates major cyber risks. ISG said supply chains involved in government procurements require regular vendor risk management and monitoring. The firm also noted that an early notification system prevented a ransomware attack against transportation infrastructure.

AI offers enhanced cybersecurity through threat detection, automated discovery of vulnerabilities and predictive analysis.

More agencies are also addressing cyberthreats by deploying cloud security posture management and workload protection platforms, which can safeguard critical applications across distributed systems.

“Public agencies need strong data protection strategies to continue delivering services and maintain public trust,” said Nathan Frey, ISG partner and U.S. public sector lead.

Top Government Technology Providers

The report also assessed 86 cybersecurity solutions and service providers across six quadrants: identity and access management, extended detection and response, technical security services, security service edge, strategic security services, and next-generation security operations center and managed detection and response.

IBM is the leading provider across five quadrants. Meanwhile, Accenture, Deloitte, Capgemini, Infosys, HCLTech and EY led in three quadrants.

“Providers enable clients to align security measures with agency goals and build effective defenses with limited resources,” commented Gowtham Sampath, assistant director and principal analyst for ISG Provider Lens Research.

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GAO Study Reveals Increased Generative AI Use by Federal Agencies
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GAO seal. GAO revealed a rise in generative AI use by federal agencies.

The Government Accountability Office released a report on Tuesday, revealing a significant increase in the use of generative artificial intelligence by government agencies from 2023 to 2024.

Generative AI Use & Potential Applications

The report, titled Artificial Intelligence: Generative AI Use and Management at Federal Agencies, determined that AI use across 11 federal agencies increased from 571 to 1,110 instances, while use of generative AI jumped from 32 to 282 usage cases.

GAO also determined that generative AI has the potential to enhance written communication and boost efficiency in accessing information and tracking program status. The Department of Veterans Affairs has begun automating medical imaging processes to bolster diagnostic services for veterans, while the Department of Health and Human Services has leveraged generative AI to contain poliovirus by gathering data from publications regarding supposedly polio-free areas.

In general, agencies can use generative AI to boost productivity, support internal operations and streamline the delivery of services, among other possible applications.

Challenges in Generative AI Adoption

GAO also reported that agencies are encountering roadblocks with deploying generative AI, including navigating federal policies like data privacy, securing technical resources and funds, and maintaining appropriate use policies and practices.

To address these challenges, agencies develop their internal policies using existing AI frameworks and guidance. This coincided with the executive branch’s move to revise its AI guidance in early 2025.

Aside from issues with its adoption, generative AI also poses a risk to national security and the environment and can be used to spread misinformation, GAO said.

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NSF & Private Partners Award $100M to National AI Research Institutes
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National Science Foundation logo. NSF announced a $100 million investment in National AI Research Institutes.

The National Science Foundation is investing $100 million in five National Artificial Intelligence Research Institutes and a central community hub to accelerate open innovation, build an AI-ready workforce and strengthen U.S. global competitiveness.

The public-private funding includes contributions from Capital One and Intel, NSF said Tuesday. The effort aligns with the White House AI Action Plan and supports Executive Order 14277, which calls for expanding AI literacy and education opportunities for American youth.

“Artificial intelligence is key to strengthening our workforce and boosting U.S. competitiveness,” said Brian Stone, NSF’s acting director. “Through the National AI Research Institutes, we are turning cutting-edge ideas and research into real-world solutions and preparing Americans to lead in the technologies and jobs of the future.”

The newly funded institutes will focus on high-impact areas, including mental health, materials discovery, science, technology, engineering and mathematics education, human-AI collaboration and drug development. Each institute will also help build a national infrastructure for AI education and workforce development.

The public-private investment recipients are:

  • NSF AI-Materials Institute led by Cornell University. NSF AI-MI will accelerate the discovery of next-generation materials essential to energy, sustainability and quantum technologies.
  • NSF AI Institute for Foundations of Machine Learning led by the University of Texas at Austin. NSF IFML will expand generative AI to new domains, including protein engineering and clinical imaging.
  • NSF Institute for Student AI-Teaming led by the University of Colorado Boulder. NSF iSAT will advance AI support for group learning and co-develop a semester-long curriculum to build AI literacy.
  • NSF Molecule Maker Lab Institute led by the University of Illinois Urbana-Champaign. NSF MMLI will develop advanced AI tools, including new types of language models and intelligent agents, that can reason, predict and help design useful molecules such as drugs, catalysts and new materials.
  • NSF AI Institutes Virtual Organization led by the University of California, Davis. NSF AIVO will connects federally funded AI Institutes, government stakeholders and the public to create a cohesive and collaborative innovation ecosystem.
  • NSF AI Research Institute on Interaction for AI Assistants led by Brown University. NSF ARIA will accelerate the development of next-generation AI assistants that are safer, more effective and better able to adapt to individual user needs.
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House Bill Seeks to Streamline Drone Exports to Allies
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Drone swarm. House lawmakers proposed a bill to help streamline drone exports to U.S. allies.

Reps. Ryan Zinke, R-Mont., and Jimmy Panetta, D-Calif., have introduced a bill that would facilitate the export of U.S.-built unmanned aerial systems to American allies and partners.

What Are the Provisions of the Leading Exports of Aerial Drones Act?

Zinke’s office said Friday the proposed Leading Exports of Aerial Drones, or LEAD, Act of 2025 aims to make direct changes to the Arms Export Control Act, U.S. Munitions List and Missile Technology Control Regime.

The bill would require UAS to be regulated similarly to manned aircraft and treated separately from missile systems when it comes to defense transfers.

“Our allies need advanced, American made technology on the battlefield and they need it delivered fast and efficiently,” said Zinke. “The LEAD Act cuts outdated restrictions and gives our partners better access to Americas most modern and advanced drone technology which will protect lives, enhances lethality, and strengthen global security.”

Panetta said the proposed measure seeks to reform the export process for U.S. technology to provide U.S. partners with rapid access to the equipment and tools that they need.

“Strengthening our alliances through timely support enhances global stability and protects U.S. national security,” he added.

Learn about how the U.S. is working with global partners at the Potomac Officers Club’s second annual GovCon International Summit on Oct. 16!

Senate Version of the LEAD Act

The House bill came days after Sens. Tom Cotton, R-Ark., Chris Coons, D-Del., and John Cornyn, R-Texas, introduced a similar bill in the upper chamber to make it easier for U.S. companies to sell drones to allies and partners.

“The current restrictions on UAS sales to allies and partners are outdated and put American companies at a disadvantage, all while ceding the market to Communist China,” Cotton said in a statement published Wednesday.

“This bill will spur American business and innovation while decreasing global dependence on Chinese military technology,” he added.

House Bill Seeks to Streamline Drone Exports to Allies

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Commerce Department Names Bill Frauenhofer as CHIPS Program Office Director
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Bill Frauenhofer. The former Morgan Stanley exec joins the Commerce Department as CHIPS Program Office director.

The Department of Commerce has appointed Bill Frauenhofer as the director of the CHIPS Program Office.

Who Is Bill Frauenhofer?

Frauenhofer, who has a three-decade career in investment banking and expertise in the semiconductor and technology sectors, most recently served as global head of semiconductor investment banking and head of West Coast technology investment banking at Morgan Stanley, the Commerce Department said Monday, adding that the new director is widely recognized for his integrity, work ethic and ability to deliver exceptional strategic guidance. He also held similar leadership roles at Bank of America Merrill Lynch, Jefferies, UBS and Citi.

In his new role, he will lead the implementation of $39 billion in semiconductor manufacturing incentives under the CHIPS and Science Act. His responsibility involves investing in the domestic semiconductor industry and rebuilding resilience across the semiconductor supply chain.

“Semiconductors are fundamental to advancing our AI capabilities,” said Secretary of Commerce Howard Lutnick. “Bill Frauenhofer’s leadership will revitalize semiconductor manufacturing in America and deliver on this administration’s commitment to winning the AI race.”

With his background in investment banking, Frauenhofer brings a track record in advising global clients on a comprehensive spectrum of capital markets transactions, including initial public offerings, equity and convertible securities, debt financings, and complex domestic and cross-border mergers and acquisitions.

“It is a truly exciting opportunity to join the Commerce Department and lead the CHIPS program into its next chapter,” stated Bill Frauenhofer, Director of the CHIPS Program Office. “I believe in this administration’s mission to rebuild a robust domestic semiconductor ecosystem and reshore American semiconductor manufacturing and jobs.”

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DOD Establishes Policy for AI Use in Public Affairs Activities
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A workspace featuring computer screens with AI elements. DOD issued guidance on AI use in public affairs activities.

The Department of Defense has released an instruction establishing policy, outlining responsibilities and providing procedures for the appropriate use of artificial intelligence tools in performing DOD public affairs activities.

Sean Parnell, assistant to the secretary of defense for public affairs, approved the new DOD instruction on public affairs use of AI, which took effect on Monday.

The document specifies policy governance frameworks to ensure the responsible use of AI in support of public affairs activities across the department.

Guiding Principles for Use of AI in Public Affairs Activities

The DOD instruction outlines five guiding principles for the use of AI capabilities in public affairs activities: mission relevant; understand benefits and limitations; uphold legal and ethical standards and protect privacy and civil liberties; security and responsible AI use; and transparency and oversight of generative AI.

DOD components should develop and implement a plan for personnel to exercise oversight and approval of generative AI outputs before using generative AI capabilities to generate information for release to the public, according to the document.

The document states that the department’s visual information created by or edited with the help of generative AI for use in public affairs should cite the technology’s use.

Responsibilities of DOD Officials

The latest instruction details the responsibilities of the assistant DOD secretary for public affairs; DOD chief information officer; chief digital and AI officer; and other DOD officials regarding the use of AI tools in public affairs activities.

The DOD CIO, for instance, should provide policy, standards and guidance for the information enterprise and define meta requirements for AI-generated content to support interoperability and record management.

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DOE Names Rick Stockburger as Foundation for Energy Security and Innovation CEO
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Rick Stockburger. Stockburger has been appointed by the DOE as the FESI's first CEO.

Rick Stockburger has been appointed by the U.S. Department of Energy as the first chief executive officer of the Foundation for Energy Security and Innovation, or FESI. The DOE said Monday that FESI was created as its first independent agency-related foundation and aims to speed up technology commercialization, increase public-private partnerships and boost the energy system. The foundation was launched in February 2023 through the CHIPS and Science Act of 2022.

The retired Army infantry team leader said he was honored and humbled by his appointment.

“So many people have poured so much love and passion into this organization that I cannot begin to list them. Thank you to the board for trusting me with this great endeavor,” he said in a LinkedIn post.

Who Is Rick Stockburger?

Before his appointment, Stockburger held several executive positions in energy and technology organizations. He became co-chair of the National Coalition of Clean Energy Incubators. He was also a member of the Forbes Technology Council and a member of the board of directors at the Valley Growth Ventures. At Brite, he served as the president and CEO for two years. Before that, he was a member of the board of directors at United Way of Trumbull County. Stockburger also became a mentor for the NASA FedTech and ITech program.

Department of Energy’s Chris Wright Shares Thoughts

Energy Secretary Chris Wright welcomed Stockburger’s appointment.

“Rick’s proven leadership and background will help advance the Department’s efforts to move emerging technologies into real world energy deployment—strengthening American science, innovation, and energy leadership. With him in place, FESI will be a valuable partner in expanding private-sector collaboration and delivering on President Trump’s agenda to unleash American energy and innovation,” Wright remarked.

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Space Force to Launch X-37B OTV-8 Mission, Test Space Communication & Navigation Technology
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X-37B spacecraft. The Space Force will launch the X-37B OTV-8 mission.

The U.S. Space Force, in collaboration with the Air Force Rapid Capabilities Office, is set to launch the eighth X-37B Orbital Test Vehicle mission onboard the USSF-36 SpaceX Falcon 9 rocket on Aug. 21 from the Kennedy Space Center in Florida.

Space Force to Launch X-37B OTV-8 Mission, Test Space Communication & Navigation Technology

Join the Potomac Officers Club’s 2025 Air and Space Summit on July 31 and discover the newest developments in air and space defense.

Boosting Space Communications

The Space Force said Monday the X-37B OTV-8 mission aims to conduct tests on laser communications and a high-performance quantum inertial sensor as part of efforts to strengthen space communication architectures.

Laser communication’s shorter infrared wavelength allows more data to be transmitted and offers enhanced security compared to radio frequency transmissions, which can be vital for space communications. This advanced technology will be tested using proliferated commercial satellite networks in Low Earth Orbit. These networks eliminate single points of failure, further strengthening the space architectures’ resilience.

“OTV-8’s laser communications demonstration will mark an important step in the U.S. Space Force’s ability to leverage proliferated space networks as part of a diversified and redundant space architecture,” said Chief of Space Operations Gen. Chance Saltzman. “In so doing, it will strengthen the resilience, reliability, adaptability and data transport speeds of our satellite communications architecture,” the three-time Wash100 Award winner added.

Enhancing Space Navigation

The advanced quantum inertial sensor will be tested in space for the first time. The test will showcase the sensor’s ability to enable accurate and unaided space navigation, especially in cis­lunar space and other environments without GPS. The sensor will measure the rotation and acceleration of atoms without relying on traditional GPS and other satellite networks.

The quantum inertial sensor is also designed to boost the navigational resilience of U.S. spacecraft when facing threats and potentially enable long-distance space travel and exploration.

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FedRAMP Awards First 20x Authorizations to 4 Cloud Companies
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Headshot of FedRAMP Director Pete Waterman. Waterman shared the companies that received 20x authorizations

The General Services Administration’s Federal Risk and Authorization Management Program has awarded 20x authorizations to cloud service offerings from InfusionPoints, Meridian Knowledge Solutions, Vanta and Flock Safety. A LinkedIn post from Pete Waterman, director of FedRAMP, also revealed that more companies, including Anitian and Secureframe, are on track to receive authorization under the 20x process. 

What Is FedRAMP 20x?

Introduced in March, 20x automates the application and validation of program security requirements to accelerate approval. The process is designed to cut red tape, reduce paperwork and empower agencies to more quickly but securely adopt new technologies. 

So, instead of several months or even years, FedRAMP can grant authorization to most cloud services within weeks through 20x, GSA said.

FedRAMP Modernization

Waterman, in his post on LinkedIn, noted that the first 20x authorizations were awarded on the anniversary of the Office of Management and Budget’s M-24-15 memorandum for modernizing FedRAMP. 

The memorandum, issued in July 2024, acknowledged the role FedRAMP plays in providing federal agencies with secure cloud technologies that meet mission needs. However, it noted that the program must evolve to better support government operations. 

“The FedRAMP Marketplace must scale dramatically to enable Federal agencies to work with many thousands of different cloud-based services that accelerate key agency operations while allowing agencies to reduce the footprint of the information technology infrastructure that they directly manage,” OMB shared in its vision for the program.

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FTC Receives TMF Grant to Enhance Data Processing Capabilities
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FTC logo. The FTC received a Technology Modernization Fund grant to develop an advanced data analytics platform.

The Federal Trade Commission has been awarded a $14.6 million Technology Modernization Fund grant to enhance its data processing and investigative capabilities.

Utilizing AI, Cloud Technology to Enhance Data Processing

The agency said Monday the fund will support the government’s efforts to strengthen FTC’s ability to detect fraud and anti-competitive practices. FTC will develop a cloud-based analytics platform incorporated with advanced artificial intelligence technologies intended to boost capabilities needed for analyzing data in investigations. The agency will also train personnel in handling these new technologies for in-house data analysis. 

The AI-powered tools are intended to streamline data processing, cutting data review from weeks to hours. In addition, FTC’s dependence on outside contractors will be minimized.

What Is the Technology Modernization Fund?

TMF grants funds to IT projects that align with the government program’s initiative to enable agencies to modernize their IT systems. TMF focuses on projects with high potential for success, savings and taxpayer benefits.

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