From governance to execution in federal AI policy
From governance to execution in federal AI policy
https://www.brookings.edu/articles/from-governance-to-execution-in-federal-ai-policy/
Publish Date: 2026-06-25 10:34:00
Source Domain: www.brookings.edu
Global artificial intelligence (AI) spending is forecasted to reach $2.5 trillion in 2026, according to one estimate, marking a 44% increase year-over-year. In 2027, spending is expected to reach $3.3 trillion, reflecting another 32% increase year-over-year. The majority of this money has funded AI infrastructure, followed by AI services and AI software (representing about 54%, 23%, and 18% of spending, respectively, for 2026).
As discussed in our most recent Brookings report, federal AI spending in the U.S. is also rapidly increasing and at a rate faster than the rest of the world. Our research showed that the value of funds obligated increased by 966% between 2024 and 2026 (from $355 million to $7.2 billion), and the value of potential award increased by 1,912% for the same period (from $4.6 billion to $91.8 billion).
Out of 441 total federal agencies, the number of agencies with AI contracts rose from 17 in 2022 to 23 in 2024 and 28 in 2026. While the U.S. Department of Defense accounted for by far the most AI contract spending (at $90 billion), other agencies with AI contracts include the Department of Commerce ($197 million), the Department of Health and Human Services ($138 million), and NASA ($45 million). Even small agencies—such as the National Archives and Records Administration ($110,000), the Nuclear Regulatory Commission ($890,000), and the Department of the Interior ($1.5 million)—had contracts, reflecting how AI is spreading across the federal government.
As the number of agencies with AI contracts rose, so did the total number of contracts across the federal government—from 472 in 2022 to 961 in 2024 and 1,743 in 2026. While many of these contracts across all years were categorized under “Professional, Scientific, and Technical Services,” others were in construction, manufacturing, information and cultural industries, and educational services.
Anticipating this growth, the Biden…
