Andrew Bowne, a researcher at the University of Texas at Austin, has published a compelling study that sheds light on the complex relationship between commercial artificial intelligence (AI) firms and the Department of Defense (DoD). His research explores why commercial AI companies choose to engage—or abstain—from working with the DoD, focusing on the legal and procurement frameworks that often serve as barriers to collaboration.
Bowne’s work is grounded in social exchange theory, which examines how interactions between parties are shaped by perceived benefits, costs, and risks. He introduces a new framework called optimal buyer theory to better understand the factors influencing commercial AI firms’ decisions to partner with the DoD. Unlike traditional military technologies, which are typically developed with federal funding, AI is largely driven by private-sector innovation for civilian applications. This distinction creates unique challenges in aligning commercial interests with national security objectives.
The study reveals that commercial AI firms do, in fact, view the DoD as an attractive customer. However, this attraction is often tempered by the obstacles presented by traditional contract law and procurement practices. Bowne’s interviews with industry participants highlight the frustrations and inefficiencies that arise from rigid contracting processes, which are often ill-suited to the fast-paced, iterative nature of AI development.
One of the key findings is that commercial AI firms are drawn to contracts that align with their business and technological priorities. This includes flexibility in project scope, rapid iteration cycles, and the ability to integrate emerging technologies without excessive bureaucratic hurdles. Bowne argues that the DoD can leverage existing contract law, particularly other transaction authority (OTA), to create more agile and appealing partnerships. OTAs allow for streamlined procurement processes, enabling faster collaboration between the government and private sector.
The research also underscores the importance of trust and mutual understanding between commercial firms and the DoD. Many AI companies are wary of the potential reputational risks associated with defence contracts, particularly in an era where ethical concerns about AI are at the forefront of public discourse. Bowne suggests that the DoD must work to build stronger relationships with the private sector, demonstrating transparency and a commitment to responsible AI use.
Ultimately, Bowne’s study provides a roadmap for improving collaboration between commercial AI firms and the DoD. By adopting more flexible contracting practices and fostering greater trust, the DoD can tap into the vast potential of private-sector innovation to enhance national security. The findings offer valuable insights for policymakers, defence contractors, and AI developers alike, paving the way for more effective and mutually beneficial partnerships in the years ahead. Read the original research paper here.