Agentic AI Becomes a Federal Priority, Reshaping the IT Services Value Chain for 2026
TBR anticipates AI-led modernization will take center stage in the federal IT market in FFY26, after the disruption from DOGE and the 43-day federal shutdown that began the fiscal year subsides. Federal agencies are increasingly embracing AI technologies to automate IT management and ensure mission success. Health and human services agencies will leverage AI to enhance benefits processing, while agencies in the Department of Defense (DOD) will use AI to streamline and secure defense supply chains and enhance battlefield operations.
