Artificial intelligence is moving into the machinery behind military operations, from property tracking and logistics to submarine construction and battlefield planning. The latest projects show a push to connect data, automate routine work, and give military organizations a clearer view of what they own and how their operations are moving.
On October 22, 2026, Leidos announced a new five-year, $95 million contract from the Defense Logistics Agency to deploy AI automation across the Pentagon’s asset management system. The work will focus on the Enterprise Logistics Management System, or ELMS, which supports more than 50 agencies and tracks over 80 million items of government property valued at more than $140 billion.
That makes ELMS one of the largest systems involved in military property accountability. The Department of War uses it to manage assets, and Leidos has supported ELMS and its predecessor, the Defense Property Accountability System, for more than 21 years. The new award extends through August 2031.
Automation aimed at military readiness
The goal is not simply to add an AI feature to an existing database. Leidos will use AI automation to streamline and accelerate the way the Pentagon manages its property, which can include equipment, supplies, and other government assets. A system that can organize this information and reduce manual work may help agencies understand what they have, where it is, and how it supports operations.
Jason McCarthy described the reason for the effort in direct terms: “Logistics wins wars and accurate, reliable asset visibility is a cornerstone of military readiness.” The size of ELMS gives that statement weight. The system covers more than 80 million items, and its users span more than 50 agencies.
The logistics project is part of a wider investment in military AI and data systems. The Navy announced a $448 million investment in artificial intelligence and data software for shipbuilding on October 21, 2026. The effort centers on the Shipbuilding Operating System, known as Ship OS, which was set up to reach submarine builders, public shipyards, and more than one hundred suppliers.
Ship OS is intended to connect the different organizations involved in building ships. That network includes companies that make submarine parts, public facilities that build vessels, and suppliers spread across the wider shipbuilding process. The investment links AI and data software to the practical work of coordinating complex production.
A larger push into submarine production
Another major project is taking shape in Baltimore County, Maryland. Anduril Industries and the U.S. Navy announced a $6.6 billion investment in Arsenal-2 on October 6, 2026. Anduril is committing $3.7 billion of its own capital, while the Navy contract is worth up to $2.9 billion, with payments tied to demonstrated production outcomes.
Initial operations at Arsenal-2 are expected in 2030. The facility is planned to build complex components and large-scale assemblies for Virginia-class submarines, beginning with torpedo tubes. Those components are planned for delivery to General Dynamics Electric Boat and HII’s Newport News Shipbuilding for final assembly.
The structure of the Arsenal-2 agreement connects private spending, Navy funding, and production results. That arrangement places the focus on what the facility can make and deliver, not only on the money committed to the project. It also gives the new site a defined role in the Virginia-class submarine production chain.
Operational data moves closer to the work
Edge Total Intelligence Inc. announced US$1.2 million in contracts with Austal USA in June 2026. The company’s edgeCore platform is designed to create a unified, real-time operational picture while customer data stays in place and under the customer’s control.
That approach is aimed at organizations that need to combine information without moving all of it into one central location. For military and manufacturing operations, the ability to see a shared picture while keeping data under customer control can support coordination across facilities, suppliers, and production teams.
EdgeTI was one of 10 finalists in the 2026 Maritime Manufacturing Innovation Challenge and took third place on September 23, 2026. The company’s work with Austal USA adds to the focus on data tools for shipbuilding, while a separate update noted that supporting scopes of work for Austal Australia lapsed on September 8, 2026, leaving approximately US$1.3 million of revenue lapsing in 2026.
The military AI push also reaches battlefield operations. On October 22, 2026, a $700 million AI investment involving Striveworks was announced. The verified details identify the U.S. Navy as announcing the deal and the U.S. Army as making the investment, while Striveworks’ Chariot AI platform is described as supporting Army battlefield operations.
Taken together, these programs cover three connected needs: knowing where military property is, coordinating the production of ships and submarine components, and giving battlefield organizations better operational information. The projects also show that military AI is moving beyond isolated experiments. It is being placed inside logistics systems, manufacturing networks, and operational platforms that support day-to-day readiness.
Based on
- Leidos to Deploy AI Automation Across Pentagon Logistics System — unite.ai
- The Navy’s Shipbuilding Problem Runs Through Its Supply Chain | Markets Insider — markets.businessinsider.com
- How Federal Agencies Can Scale AI From Pilot To Production — forbes.com
- US Army Making $700 Million Bet on AI for Battlefield Decision-Making – Business Insider — businessinsider.com
