8 The US Military represents the largest enterprise in the United States, and it is beginning a years- long technology adoption focused on Generative Artificial Intelligence (Gen-AI). Ensuring successful implementation, however, may present certain challenges. We define Gen-AI tools as software models capable of processing diverse input data and collaborating with humans to generate various outputs or decisions. These tools can include Multi-Modal Models that leverage multiple forms of data (sonic, graphic, textual, etc.) and action-taking Agentic AI. Gen-AI technologies already demonstrate their potential to the military through ongoing strategic programs, prototyping, and pilots, but the investments that major Gen-AI developers are making in the technology and its enabling infrastructure provide a glimpse of a much larger long-term impact. S&P Global is tracking over $1 trillion in capital expenditures expected between 2024 and 2027 among the five largest “hyperscalers” of Gen-AI.2 Many of these firms are positioning their technologies for military applications, and some are primarily focused on the national security market. As the US technology sector paves Gen-AI’s domestic infrastructure in the next few years, we also observe geopolitical events accelerating military adoption of Gen-AI. Specifically, foreign investments in Gen-AI are ramping up, fueling geopolitical rivalries and necessitating that the US military respond. For example, China—the largest AI investor second to the United States—has state-backed capital investment funds supplying approximately $200 billion in capital to the sector.3 DeepSeek, released by a Chinese Gen-AI startup in January 2025, demonstrated comparable capability to American models at potentially lower costs, and is thought to have distilled OpenAI’s outputs. 4,5 The Pentagon was forced to confront the necessity to adopt this technology category when news broke that DOD employees used DeepSeek on military computers, maintaining connections with Chinese servers for multiple days.6 The events surrounding DeepSeek and the broader race for AI supremacy signal an inflection point in which the Pentagon cannot ignore the wide applicability and cross-functional value that Gen-AI tools offer to its entire workforce. Failure to adopt Gen-AI has already—and will continue to—compromise our national security interests, and the transition must begin now. However, it must be executed in a way that drives material and lasting value which will require diligence, patience, and well-timed investment. INTRODUCTION Generative AI Adoption in the US Military