Key Takeaways:
- The Pentagon has released three major policy memos aimed at overhauling and accelerating the department’s technology efforts.
- The memos introduce new AI initiatives, including a break-up of the Advana database system and the establishment of an AI simulation "foundry" named after Ender Wiggin.
- The Pentagon is consolidating independent innovation organizations under the control of the Defense Department’s chief technology officer, Under Secretary for Research & Engineering Emil Michael.
- The changes aim to streamline the innovation ecosystem, reduce confusion, and increase accountability.
- The memos also introduce new personnel appointments, including Owen West as DIU director and Cameron Stanley as the next Pentagon Chief Digital and Artificial Intelligence Officer.
Introduction to the Overhaul
The Pentagon has launched a significant overhaul of its technology efforts, with Secretary Pete Hegseth releasing three major policy memos on Monday evening. As Hegseth declared in his "Arsenal of Freedom" tour stop at SpaceX’s Brownsville, Texas factory, "The old era ends today. We’re done running a peacetime science fair while our adversaries are running a wartime arms race." The memos unveil a range of new AI initiatives, as well as a consolidation of independent innovation organizations under the control of the Defense Department’s chief technology officer, Under Secretary for Research & Engineering Emil Michael.
Consolidation of Innovation Organizations
The memos aim to streamline the innovation ecosystem, which has been criticized for being a "tangle of overlapping organizations and confused authority." As one of the Hegseth memos states, "Multiple organizations fight for the same mission. Industry faces a maze of competing front doors. Councils proliferate while accountability diffuses….Today, we end the confusion. The intent and policy are simple: unify the innovation ecosystem led by a single Chief Technology Officer." The changes will see the Defense Innovation Unit (DIU) and the Strategic Capabilities Office (SCO) become departmental "Field Activities" under the CTO’s supervision, alongside other organizations such as the Office of Strategic Capital (OSC) and the Defense Advanced Research Projects Agency (DARPA).
New AI Initiatives
The memos introduce a range of new AI initiatives, including the establishment of an AI simulation "foundry" named after Ender Wiggin. As Hegseth announced in his Texas speech, "Emil will set the technical direction, lead the innovation ecosystem that will welcome progress from anywhere it resides, and he’ll tell me face-to-face every day, and frankly, whether we are gaining or losing the technology and innovation competition." The memos also introduce seven new "Pace-Setting Projects" to be spearheaded by the CDAO, including GenAI.mil, Swarm Forge, Agent Network, Ender’s Foundry, Open Arsenal, Project Grant, and Enterprise Agents. These projects aim to develop novel AI-enabled capabilities, such as semi-autonomous algorithmic "agents" for battle management and decision support.
Break-up of Advana
The memos also announce the break-up of the Advana database system, which has become a victim of its own success. As Hegseth’s third memo states, "Effective immediately, denials of CDAO data requests must be justified to the USW(R&E) [i.e. Michael] within seven (7) days, who will remediate or escalate to the Deputy Secretary." The break-up of Advana will see the core financial management functions separated from other Defense Department data, now called the "War Data Platform (WDP)", and from underlying application services.
Reaction to the Changes
The changes have been met with a mix of optimism and skepticism. As Jack Shanahan, a retired Lt. Gen. and founding director of the Pentagon’s Joint AI Center, stated, "I remain cynical about execution, given how the building operates. Are commercial companies with good ideas supposed to go to the CAG, the CTO, one of the six organizations, all of the above?" Mike Groen, Shanahan’s successor as director of JAIC, added, "The day we stop writing org charts and start writing code will be one to celebrate." Despite these concerns, the changes aim to streamline the innovation ecosystem and increase accountability, with Hegseth stating, "The intent and policy are simple: unify the innovation ecosystem led by a single Chief Technology Officer."
https://breakingdefense.com/2026/01/pentagon-rolls-out-major-reforms-of-rd-ai/