THIS WEEK IN AI
Candice Bryant Consulting
Strategic Intelligence & Public Affairs
Each week, I synthesize the key developments in AI and public policy so you don’t have to. Here’s what I’m watching:
The Pentagon launches an “AI-first” acceleration strategy
DHS invests in drone defense as the military tests kinetic swarms
AI memory demands drive up consumer device costs
How to Read This Newsletter: This Week in AI applies the same principles of concise writing used to brief busy policymakers. Each entry contains a summary and analysis—if you already know what happened, jump straight to "What I'm Watching" for insights.
1. Pentagon AI Acceleration Strategy
Defense Secretary Pete Hegseth has unveiled a new strategy to transform the military into an “AI-first warfighting force,” explicitly framing it as a shift from a “peacetime science fair” to a “wartime arms race.” The strategy prioritizes expanded access to computing resources, streamlined data sharing, and increased collaboration with private-sector AI developers. It calls for faster deployment of AI models, shorter approval timelines, and greater use of rapid experimentation within the department.
The initiative establishes seven “Pace-Setting Projects” intended to improve battlefield decision-making, accelerate intelligence processing, and modernize enterprise workflows for Department of Defense personnel. The projects span warfighting, intelligence, and enterprise functions, including GenAI.mil, a platform designed to provide department-wide access to generative AI tools such as Google’s Gemini and xAI’s Grok.
What I’m Watching:
Secretary Hegseth’s statement that the U.S. is done running a “peacetime science fair” while adversaries wage a “wartime arms race” reflects a continuation of the tone he set late last year when he symbolically renamed DoD the Department of War and announced acquisition reforms prioritizing speed and a commercial-first approach. The debate in Washington has largely moved past whether the Pentagon will pursue these rapid changes, given the shared view that the U.S. must compete with China. However, expect continued scrutiny on the how, as lawmakers seek to ensure efforts to reduce bureaucratic friction don’t erode safety guardrails.
2. DHS Launches Counter-Drone Office; Pentagon Tests Kinetic Swarms
The Department of Homeland Security has launched a new office to accelerate the procurement and deployment of drone and counter-drone technologies. DHS officials have said the office is finalizing a $115 million investment tied to securing major public events, including America250 celebrations and the 2026 FIFA World Cup. This follows Congress’s passage of the Safer Skies Act as part of the FY26 National Defense Authorization Act, which expands counter-drone authority beyond a narrow set of federal agencies to state and local law enforcement.
The expanded authorities come amid a rise in unauthorized drone activity at major venues. The National Football League told ESPN it has recorded more than 2,000 drone incursions in each of the past three seasons into restricted airspace around stadiums, highlighting gaps in on-site response capabilities at sporting events and large public gatherings.
Separately, the Department of Defense confirmed it recently conducted the first “kinetic drone swarm” on U.S. soil during a January exercise at Camp Blanding, Florida. In the demonstration, a single operator launched multiple first-person-view drones, including one that acted as a “leader,” to strike simulated targets in a coordinated attack. The exercise was part of Swarm Forge, one of the department’s seven AI Pace-Setting Projects.
What I’m Watching:
Safer Skies is a bipartisan response to a clear operational gap and represents a meaningful shift in domestic counter-drone policy as the technology continues to advance. As state and local agencies take on new counter-drone responsibilities, attention will shift to training, coordination, and oversight—ensuring these tools remain focused on event security and public safety, while minimizing the risk of accidents or mission creep.
3. AI Memory Demands Hit Consumer Market
Demand for memory chips driven by AI data centers is impacting the broader market. Manufacturers are allocating a growing share of production capacity to the high-performance memory used in AI infrastructure, tightening supply for the standard memory found in consumer electronics. With only three companies controlling most global memory production—Samsung and SK Hynix in South Korea, and Micron in the U.S.—the shift toward AI demand is putting pressure on availability elsewhere.
The effects are already visible across consumer devices. Rising memory costs are contributing to higher prices for laptops and smartphones, while manufacturers adjust device specifications to manage expenses. The gaming industry has been hit particularly hard, as high-end gaming PCs rely on large amounts of fast memory and are more exposed to supply constraints and pricing volatility. Analysts expect these pressures to persist for several years.
What I’m Watching:
Memory manufacturers can’t simply produce more to meet demand—new factories require billions in investment and years to build, and manufacturers remain uncertain whether AI demand will sustain at levels that justify those commitments.
In the near term, expect greater focus on how scarce memory is allocated across enterprise and consumer markets. Large players will need to show they’re thinking about efficiency and adding capacity—and not hoarding or jumping the line—given the realities facing price-sensitive consumers.
