Technology
AI Might Not Be the Federal Buzzword of 2026
2026: The Future of Federal IT and Acquisition
The buzz around artificial intelligence (AI) may not dominate the federal IT landscape in 2026. Instead, experts predict that various emerging topics will take the forefront, from the Defense Department’s drive for rapid capability deployments to innovative workforce transformations. The Federal News Network recently polled a panel of knowledgeable figures in technology and procurement to shed light on what this year might hold.
Key Voices in Federal Acquisition
The panel includes seasoned professionals, each bringing expertise from various federal sectors:
- Jonathan Alboum: Federal Chief Technology Officer, ServiceNow, and former CIO of the Agriculture Department.
- Melvin Brown: Chief Growth Officer at CANI and former deputy CIO at the Office of Personnel Management.
- Matthew Cornelius: Managing Director of Federal Industry at Workday.
- Kevin Cummins: Partner at Franklin Square Group.
- Michael Derrios: Executive Director, Greg and Camille Baroni Center for Government Contracting at George Mason University.
- Julie Dunne: Principal with Monument Advocacy and former GSA commissioner.
- Mike Hettinger: Founding Principal of Hettinger Strategy Group.
- Nancy Sieger: Partner at Guidehouse’s Financial Services Sector and former IRS CIO.
Key Initiatives to Watch
1. AI Acquisition Governance
Brown emphasizes the importance of establishing standardized frameworks for acquiring AI. In 2025, guidelines were laid out, and 2026 will be crucial for agencies to operationalize these in procurement processes through common clause libraries and “responsible AI” evaluations.
2. Cybersecurity Maturity Model Certification (CMMC)
The phased rollout of CMMC will present significant challenges, particularly for smaller firms. Observing how often contracting officers incorporate these clauses will provide insights into industry accessibility and competitive dynamics.
3. GSA OneGov Initiative
Hettinger points out the ongoing pressure on resellers and systems integrators to deliver more at lower costs. How well the OneGov initiative adapts to government needs will be a bellwether for future IT acquisitions.
4. Software Asset Management (SAMOSA Act)
Cornelius highlights the importance of Congress potentially passing the SAMOSA Act. This legislation could empower agencies to better manage their software assets and transform IT operations into more efficient practices.
Legislative Developments
In terms of legislative focus, reauthorization of the Technology Modernization Fund (TMF) has many observers concerned. Given its bipartisan support in the past, Cummins notes that failure to revitalize this fund may signal challenges in modernizing federal IT systems.
Workforce Dynamics
An essential aspect of 2026 is how federal agencies manage the ongoing IT talent exodus. Sieger warns that the loss of mid-career technologists may create critical knowledge gaps. Agencies face a daunting task: retaining legacy system knowledge while pushing forward with new technologies.
Acquisition Reforms on the Horizon
Dunne underscores the potential for significant reforms in acquisition processes that align civilian and defense sectors under Title 41 provisions. The recent creation of the Office of Centralized Acquisition Services (OCAS) is intended to streamline procurement across agencies.
Managing IT Efficiency and Value
Agencies are tasked with deriving tangible value from their investments in AI, as emphasized by Alboum. Monitoring which technologies deliver results will be key amid tight budgets, ensuring that efficiency gains are maintained long-term.
Evolving Security and Access Needs
As agencies proceed with zero-trust frameworks, Brown indicates that managing the data layer will become increasingly crucial. This raises discussions about whether to converge on fewer tools or continue investing in overlapping solutions.
Future Buzzwords
Several panel members predict that new themes will emerge in 2026:
- “Speed to Capability”: Brown expects this model to expand beyond the Department of Defense.
- “Resilient Innovation”: Sieger foresees agencies balancing modernization efforts with the need to maintain operational stability.
- “Value”: Derrios emphasizes that the focus will shift towards ensuring that federal acquisitions deliver meaningful outcomes.
Governance as a Foundation
Alboum predicts that governance around AI, data, and cybersecurity will become paramount. Moving from merely deploying AI to ensuring its security and value will transform how government measures success.
As 2026 unfolds, it promises a complex landscape full of opportunities and challenges for federal IT and acquisition. The journey toward innovation and efficiency will depend heavily on how agencies adapt their strategies, manage talent, and embrace new technologies while ensuring accountability and performance.
Technology
Evaluating the Valuation of Gorilla Technology Group (GRRR) Following the US$1.4 Billion AI Data Center Partnership Announcement
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Gorilla Technology Group (GRRR) has recently garnered attention due to its announcement of a substantial partnership worth US$1.4 billion. This multi-year agreement is set to facilitate the deployment of AI-ready data centers across Southeast Asia. Additionally, Gorilla has achieved notable wins in the realms of AI-driven public safety and infrastructure projects in Taiwan, marking a significant milestone in its expansion efforts.
See our latest analysis for Gorilla Technology Group.
Following this announcement, Gorilla’s stock experienced a remarkable surge, reflecting a one-day share price return of 12.36% and a seven-day return of 7.89%. However, investors should be cautious as the three-year total shareholder return is notably negative at -81.75%, indicating that long-term holders have faced considerable volatility and disappointing outcomes. This stark contrast prompts further examination of the company’s future trajectory.
If Gorilla’s shift toward AI is piquing your interest, it may be an opportune moment to diversify your investment watchlist. Consider exploring other high-growth technology and AI companies available through our high growth tech and AI stocks.
With the current stock price at US$14.09, coupled with the recent growth, a significant drop in total returns over three years, and a price target suggesting an upside of US$35, investors are left wondering if there is real value or if the market has already factored in anticipated growth.
The closing share price of US$14.09 juxtaposed with the widely referenced fair value of US$36.50 highlights a significant gap that is highly reliant on optimistic growth and margin projections. This disparity raises critical questions about the company’s future performance and market perception.
As Gorilla shifts from a project-based revenue model to more predictable, long-term recurring revenue contracts, alongside enhancements in its product/service offering and a goal to normalize gross margins to 40%, the outlook for greater earnings visibility and higher margins appears promising for the coming years.
Curious about the revenue growth, margin adjustments, and valuation multiples that support the US$36.50 fair value projection? The complete narrative elaborates on the growth trajectory, anticipated profit resets, and necessary discount rates for the current price to align with forecasted values.
Result: Fair Value of $36.5 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
While the outlook seems positive, it’s crucial to recognize that delays in securing large government contracts or infused equity diluting existing shareholder value could alter the narrative dramatically. Investors must remain vigilant in monitoring such developments.
Find out about the key risks to this Gorilla Technology Group narrative.
For those who prefer a hands-on approach to analysis, building your own narrative can be straightforward. Start with this tool for a personalized investment narrative.
Technology
Strengthening MIT’s Ties with Japan | MIT News
Christine Pilcavage: Bridging Cultures through MISTI Japan
Born and raised in Japan as part of a military family, Christine Pilcavage understands deeply the transformative power of cultural immersion and exploration. Her life experiences have taken her across various countries, including Cambodia, the Philippines, and Kenya. “Any experience in a different context improves an individual,” she emphasizes, showcasing her belief in the value of diverse perspectives.
MISTI Japan: A Portal to Opportunities
As the managing director of MISTI Japan (MIT International Science and Technology Initiatives), Pilcavage plays a pivotal role in connecting MIT students and faculty with collaborators in Japan. The program offers students unparalleled opportunities through internships and research initiatives. By organizing cultural activities such as Ikebana classes and the Japanese Film Festival during MIT’s Independent Activities Period, she fosters a richer understanding of Japanese culture on campus.
MIT’s historical links with Japan are profound, dating back to 1874 when the first Japanese student graduated. The establishment of the MIT Association of Japan in 1911 marked the beginning of trans-Pacific alumni connections, which later evolved into the MIT Club of Japan. These roots highlight the long-standing relationship between MIT and Japan.
Immersive Experiences Shaping Future Leaders
The MIT-Japan Program, founded in 1981, was established to prepare MIT students to become forward-thinking scientists and engineers proficient in working within the Japanese context. Since its launch in 1983, students have participated in three to twelve-month internships, immersing themselves in a vastly different culture. “Japan is so different from the Western world,” Pilcavage notes, pointing out nuances in communication, like how verbs end sentences in Japanese, emphasizing the need for patience and keen listening.
Pilcavage advocates for the immense benefits of broadening one’s horizons beyond the familiar MIT environment and the United States. Traveling internationally cultivates diverse viewpoints, promotes innovative problem-solving, enhances language proficiency, and nurtures effective communication skills.
Cultural Resilience and Language Learning
One standout aspect of the program is its focus on cultural resilience. Pilcavage believes that engaging with local populations not only enriches student experiences but also supports them in learning differently. “We want our students to think and create,” she asserts, emphasizing the importance of viewing challenges through different cultural lenses.
MIT students actively contribute to their host communities through programs designed for rural Japanese kids, teaching STEM subjects in Japanese. This initiative, which has been ongoing since 2017, equips students with valuable skills while deepening their understanding of cultural subtleties, such as body language tailored to Japanese contexts.
A Multifaceted Journey to MIT
Pilcavage’s background is as diverse as her interests. She holds master’s degrees in both international affairs and public health, alongside an undergraduate study in economics and psychology. Her professional journey includes work with USAID, the Japanese government, JICA, and the World Health Organization, focusing on global health and educational challenges across Africa and Asia.
Her initial foray into Cambridge, Massachusetts, was driven by a quest for practical experience in public health. Pilcavage joined Management Sciences for Health, investigating reproductive issues and supporting Japanese NGOs. Her personal ties to MIT have deepened over the years—she even married an MIT alum in the MIT Chapel!
Commitment to Global Development
Throughout her career, Pilcavage has emphasized the importance of problem-solving in real-world contexts. During her early years at MIT, she managed the Comprehensive Initiative on Technology Evaluation (CITE), which evaluated low-cost interventions for communities living in poverty. “It’s important to learn how to manage real-world challenges effectively,” she notes, reinforcing her role in fostering collaborative environments for innovation.
Her dedication to promoting positive relations between the United States and Japan has not gone unnoticed. She has received accolades such as the Foreign Minister’s Commendation from the Japanese Ministry of Foreign Affairs and the John E. Thayer III Award from the Japan Society of Boston.
Future Initiatives and Ongoing Impact
Today, Pilcavage remains passionate about the future of MISTI Japan. She is excited about new initiatives, including the upcoming global classroom project that will allow students to explore Japanese history and culture firsthand. These experiences in cities like Kyoto and Hiroshima aim to deepen students’ understanding and appreciation of Japan’s rich heritage.
Her constant questioning—“How can I make the program better?”—illustrates her dedication to continuous improvement for MISTI Japan. “I tell people I have the best job in the world,” she states, relishing the opportunity to share her culture with the MIT community while collaborating with supportive colleagues.
Through her efforts and leadership, Pilcavage is not just creating pathways for exploration but is also fostering a profound appreciation for cultural connections among the next generation of innovators and leaders.
Technology
Elon Musk’s X to Prevent Grok from Analyzing Images of Real Individuals
Elon Musk’s Grok Faces Scrutiny: AI and the Dangers of Deepfakes
Elon Musk’s artificial intelligence tool, Grok, has been in the spotlight following its controversial ability to create edited images of real people, particularly depicting them in revealing clothing. Recent developments have sparked discussions about legality, ethics, and user accountability, highlighting the increasing concern over the implications of AI-generated content.
Changes Announced by X
In a recent announcement on social media platform X (formerly Twitter), Musk’s team revealed that Grok would no longer have the capability to manipulate images of real individuals to present them in a sexualized manner, especially in jurisdictions where such practices are deemed illegal. The statement read, “We have implemented technological measures to prevent the Grok account from allowing the editing of images of real people in revealing clothing.” This decision came in light of growing public and governmental pressure to reign in the use of these AI capabilities.
Government Reactions
The UK government expressed a sense of validation following Grok’s new policy. Prime Minister Sir Keir Starmer had previously urged X to take action to manage AI tools responsibly. Reacting to the announcement, a spokesperson from UK regulator Ofcom described the change as a “welcome development,” yet clarified that their investigation into whether the platform violated UK laws continues. Technology Secretary Liz Kendall underscored the importance of establishing firm facts through Ofcom’s ongoing inquiry.
Legal Investigations in California
Adding to the mounting scrutiny, California’s Attorney General announced an investigation into the proliferation of sexualized AI deepfakes, particularly those that could involve minors. This investigation indicates a growing inclination among authorities to address AI-generated content’s potential harms, revealing the urgency behind the need for regulation in the rapidly evolving tech landscape.
User Restrictions and Accountability
In their statement, X clarified that only paid users would now be permitted to generate images using Grok, a change intended to enhance accountability. This strategy aims to deter individuals who might misuse the tool for unlawful purposes. The AI’s restrictions are specifically tied to geographic locations, blocking the creation of explicit content in areas where it violates local laws.
While Musk insists that Grok will maintain certain NSFW (not safe for work) features, he reassured the public that under new checks, it would adhere to R-rated standards, varying between regions based on local regulations.
Public and Expert Reactions
Reactions from the expert community have expressed cautious optimism, but with significant reservations. Clare McGlynn, a law professor at Durham University, noted that while X’s new measures are commendable, they come too late for many victims already impacted by the misuse of such technologies. Similarly, Andrea Simon, director of the End Violence Against Women Coalition, emphasized that while X’s response indicates the power of public and governmental pressure, a proactive approach from tech companies is essential to effectively combat AI-generated harms.
Investigations and Future Actions
Ofcom’s investigation into X raises concerns about enforcement and compliance. If X is found in violation, Ofcom could seek court orders to restrict access to the platform altogether within the UK. Prime Minister Starmer has warned that X could lose its “right to self-regulate” if it fails to address these serious allegations thoroughly.
Unresolved Concerns Over Implementation
Despite the announcement of new policies, significant questions remain regarding the practicality of enforcing these changes. Experts like policy researcher Riana Pfefferkorn have pointed out that mechanisms for distinguishing between real and AI-generated images need to be clarified. Concerns also persist regarding users circumventing regulations through VPNs, which allow individuals to mask their geographical location. This leaves significant loopholes for misuse, raising the stakes on how effectively X can implement these new guidelines.
The Road Ahead
As technology continues to advance at a rapid pace, the question remains if platforms like X can adapt to new challenges effectively. The recent outcry over Grok underscores not just a moment of accountability for Elon Musk’s ventures but also a larger conversation about the responsibilities technology companies hold in safeguarding public interests. The outcome of these ongoing investigations may very well shape the future of AI application and regulation for years to come.
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