Breakdown of FY18 federal IT spending
Chris Cornillie, federal market analyst at Bloomberg Government, discusses what the increase in federal IT spending means for government technology, and details the emerging “AI arms race.”
Last fiscal year, the federal government spent $64.7 billion on IT contracts. Bloomberg Government crunched the FY18 numbers and found that IT spending increased 10% over the previous year, and it appears that the trend will continue into the future. Chris Cornillie, federal market analyst at Bloomberg, says that spending surged in a few key areas, like artificial intelligence development and cloud migration.
“In fiscal 2017, federal agencies spent about $340 million on artificial intelligence contracts, in 2018 that was up to almost $600 million. That’s a 75% increase in a single year…” Cornillie said. “Same thing for cloud computing. Even before the White House released its Cloud Smart strategy in September of 2018, you were already seeing double digit increases in the amounts that federal agencies were spending on cloud computing.”