The Federal Drive with Terry Gerton

The economics of AI are creating an unusual problem. Unit costs are falling, but overall spending may still rise as adoption spreads across government. Here with insights on how leaders can begin to prepare now are Gayatri Shenai and Tim Ward from McKinsey.
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The Defense Department is creating a new command dedicated to autonomous warfare, while federal agencies are responding to the effects of the latest hurricane. We'll look at what those very different events say about planning, readiness and the role industry plays in both. Joining me is Stephanie Kostro, president of the Professional Services Council.
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The Government Accountability Office has repeatedly found that the administration improperly withheld congressionally appropriated funds under the Impoundment Control Act. Some appropriators are urging GAO to seek judicial enforcement of those findings, even as Congress weighs its own response to the broader dispute over spending authority. Joining me with the latest is Loren Duggan from Bloomberg Government.
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Today on the Federal Drive with Terry Gerton
Whether it's preparing for the next war or responding to the next storm, success usually depends on work that's already been done
The first wave of government AI adoption came with pilot projects and discounted pricing. The next phase could bring a very different budget reality
Whether it's preparing for the next war or responding to the next storm, success usually depends on work that's already been done

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Welcome to this holiday edition of the Federal Drive on Federal News Network. It's Monday, October 12. I'm your host Terry Gerton, and I'm glad you're here. Thank you for making the Federal Drive part of your Columbus Day holiday today. I wanted to bring you the recording of a panel I moderated at the NDIA Emerging Technologies for Defense Conference on September 9th. The topic is an important one. The Pentagon is increasingly looking beyond contracts and grants to shape the defense industrial base through venture capital, private equity, new financing mechanisms, and even direct government investment. The panel explores why defense leaders believe capital markets have become a national security tool, what we've learned from this shift, and whether it's changing the way military capability is built and scaled. The panelists are experts: Michael Brown from Shield Capital, Paul Madera from Meritec Capital Partners, and Frank Finelli from the Carlyle Group.
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