AI-powered innovation: Transforming federal software development for mission success
Apr 9, 2025
2 MIN. READ

Artificial intelligence (AI) is propelling federal agencies into a new era of efficiency, innovation, and mission success. From streamlining operations to reimagining software development, its impact is already reshaping the government.

ICF’s latest survey reveals how AI is driving a seismic shift in the software development process—and how federal IT leaders are accelerating innovation to deliver mission outcomes.

The transformative impact of AI

To better understand how IT leaders are adopting AI in software development and the challenges they face, we partnered with MeriTalk to survey 100 federal IT decision-makers. The findings offer a clear look at AI’s role, potential, and roadblocks in advancing mission outcomes.

These findings highlight the progress government leaders have already made on the nuts and bolts of integrating AI into their software development processes. They also offer a glimpse into a bold future where agencies continue to accelerate innovation to deliver smarter, faster, and better government services.

The impact of AI on federal agencies chart showing the vast majority of leaders agree AI will reduce project timelinesThe impact of AI on federal agencies chart showing the vast majority of leaders agree AI will reduce project timelines

“To build momentum in modernization, agency IT leaders should prioritize immediate, practical action to start using AI—rather than getting stuck in prolonged planning or overcomplicated frameworks.”

— Kyle Tuberson, Chief Technology Officer, ICF

What can AI-assistance do for federal agencies?

AI is rapidly advancing technologies across the federal government, including software development. While only 46% of federal employees consider themselves core users of AI-assisted software development, all agencies are taking steps to expand their use of AI.

How agencies are leveraging AI largely depends on the user group. For example, core AI users—IT decision-makers who say they “almost always” use AI-assisted software development—point to data analysis as their top application, while less frequent users focus on detecting security vulnerabilities.

“It’s essential to leverage pre-built solutions as key enablers for rapid progress, helping to bypass initial bottlenecks and kickstart AI initiatives right from the start.”

— Ratima Kataria, Vice President, Strategy and Growth, Federal Health, ICF

The time to act is now

AI-assisted software development can drive innovation and turbocharge efficiency. To realize these benefits, federal agencies must continue adopting AI-powered development tools to automate repetitive tasks, streamline testing, and improve real-time decision making.

Integrating AI into key software development workflows, while also providing employee education and training, will enable federal agencies to accelerate project timelines, reduce manual errors, and optimize resources for high-impact, mission-driven activities. Achieving success requires agencies to acknowledge and resolve the challenges of AI, while driving incremental progress.

The next four years can be a turning point for software innovation. Nearly three-quarters, 71%, of federal agencies are optimistic that the new administration will usher in a new era of innovation for software development. By embracing AI-powered development, agencies can transform this optimism into tangible progress to drive the next wave of government innovation.

Chart showing steps agencies take to adapt to AI-assisted software development - develop training, develop strategy, allocate budget, create AI focused team, and partner with AI expertise vendorsChart showing steps agencies take to adapt to AI-assisted software development - develop training, develop strategy, allocate budget, create AI focused team, and partner with AI expertise vendors

“To successfully scale AI adoption across the enterprise, begin with your current capabilities. Focus on practical, high-impact outcomes by embedding AI seamlessly into existing workflows, accelerating efficiency, insights, and value.”

— Patrick McConnell, Senior Vice President, Scaled Delivery Services, ICF

Who we surveyed

ICF worked with MeriTalk to survey 100 IT decision-makers from federal civilian agencies to explore how these leaders are transforming software development strategies—and advancing their missions—with open source, AI, and cloud.

About ICF

ICF is a global consulting and technology services company, but we are not your typical consultants. We help clients navigate change and better prepare for the future.

Our team provides digital, cyber, and cloud-based platform services that drive transformational solutions across business and government. From cloud platforms and automation to machine learning and AI, we provide the foundation to meet dynamic end-user requirements and stand up a modern enterprise. We combine the best of advanced analytics, industry expertise, and enterprise technologies to build agile solutions that evolve to meet your changing needs. Our extensive suite of proprietary software and other technology tools add value to your projects from the outset. Learn more.

View the full report