A defense contracting expert with Michael Best Strategies says U.S. military capability is falling short on some emerging technologies such as AI-based decision support.
Erik Berdy, who chairs the firm’s Defense & National Security Practice, was also special assistant for legislative affairs to the chairman of the Joint Chiefs of Staff during the Trump and Biden administrations. He spoke during the recent American Economic Interest Summit, held by Wisconsin Manufacturers & Commerce in Brookfield.
When asked about gaps in capability for the U.S. Department of Defense, Berdy said he could think of at least 15 categories ranging from hardware that’s “required for the next-generation fight” to sub-components going into small-scale electronics.
“Where are we when it comes to AI and the application of AI for mission command and decision-making? That is, I wouldn’t necessarily call it a gap, but it’s something they’re working on very aggressively,” he said. “Speed up the decision-making cycle, the targeting cycle, etcetera.”
He also noted the role of AI in supporting autonomous military systems, as relatively cheap unmanned drones have played a major role in both the ongoing war in Ukraine and the more recent conflict in Iran.
“Where are we in autonomous capability? … Whether it’s air, surface or sub-surface, do we have that capability in hand? We are short on that,” Berdy said.
The discussion referenced the U.S. Department of Defense’s $1.5 trillion budget request for fiscal year 2027, as Berdy noted a $65 billion shipbuilding provision in the proposal contains a segment for autonomous systems.
“Could be a whole niche,” he said, adding “autonomous capability, with or without AI, probably two areas of pretty significant focus based on we’re coming up short in what we’re seeing from Iran.”
The U.S. engagement in Iran has reduced the military’s stocks of precision munitions, Berdy noted. He said efforts to replenish that inventory will get it “back to where they were supposed to be for … a kinetic fight with China” over Taiwan.
His comments last week came just days before President Donald Trump met with Chinese President Xi Jinping in Beijing, where the Chinese leader reportedly warned Trump of potential conflicts with the U.S. over Taiwan.
Meanwhile, Berdy told attendees that defense contracting ultimately comes down to “can you solve a problem” for the department while being competitive.
“Do you meet the requirement? If so, can you come in at cost or under? Do you underperform, or overperform?” he said.
