How to Sell AI Agents to the US Government

AI isn’t just a buzzword anymore—it’s quietly becoming a cornerstone of how the U.S. government operates. From chatbots that guide students through loan applications to experimental AI copilots flying simulated fighter jets, federal agencies are investing heavily in AI agents and AI assistants.

And here’s the thing: those investments are creating massive opportunities for businesses—but only for the ones who know how to navigate government contracting.

I’ve been on the inside of federal acquisitions, managing billions of dollars in Department of Defense contracts, and I can tell you this: AI is no longer experimental—it’s operational. If you’re in AI or tech, you need to understand how the government is buying, where the money is flowing, and how to position your company before the contracts are even released.

Let me break this down with a few examples and lessons you can apply right now.

AI in Action: How Federal Agencies Are Already Using AI

Most people don’t realize how quickly AI has moved from theory into practice inside government.

Take the Department of Education. They’ve been testing a chatbot called Aiden that helps students navigate the confusing world of federal student loans. It’s a simple proof of concept, but it shows the government is willing to pilot tools that make citizens’ lives easier.

Or look at the Department of Veterans Affairs (VA). They’ve been quietly experimenting with small AI chatbot contracts to improve how veterans access services. And here’s where it gets really interesting: many of these contracts have gone to small and mid-sized businesses, including SDVOSBs (Service-Disabled Veteran-Owned Small Businesses).

That means you don’t need to be a billion-dollar defense prime to break into this space. In fact, the VA is opening the door for innovative small firms to play a role in shaping how AI gets adopted.

The Military Side: From Office Assistants to Battlefield Autonomy

AI isn’t just about making paperwork easier. The Department of Defense is already testing AI in ways that could reshape the battlefield.

• The Navy has been exploring GPT-powered tools that act as assistants for sailors and officers.

• The Air Force and DARPA have gone a step further—running advanced flight tests where AI agents actually fly fighter jets in simulated dogfights.

Think about that for a second. Just a few years ago, AI was something you used to schedule meetings. Now, it’s flying fighter jets.

This shift shows that AI is moving from being an “office tool” to being a mission-critical asset in defense and national security. For companies in AI and autonomy, that’s a signal that the government isn’t just experimenting—it’s investing in AI as a strategic capability.

How to Actually Win These Contracts

Now, here’s the part that separates the companies who get in from the ones who get left behind.

Too many businesses wait until a Request for Proposal (RFP) drops to get serious. By then, it’s already too late.

The real move is to engage early—when agencies release Sources Sought Notices or Requests for Information (RFIs). That’s your chance to:

• Show your capabilities

• Build relationships with decision-makers

• Help shape the requirements before they’re finalized

If you’re serious about government AI contracts, you need to be tracking these early signals and engaging before the competition wakes up.

Why Procurement Codes Matter (Even Without an AI Category)

Here’s a curveball: the government doesn’t have a dedicated procurement code for AI yet. That means you won’t find a “NAICS code” or “PSC code” labeled neatly as “artificial intelligence.”

Instead, AI contracts are categorized under broader industry and service codes—like IT services, cybersecurity, or data processing.

That’s why understanding NAICS and PSC codes is so important. If you don’t know how your solution is being coded, you’ll miss the opportunities completely when you’re researching federal spending or upcoming acquisitions.

This is where I spend a lot of time with clients—teaching them not just how to sell, but how to decode the government’s own buying language.

Why Training and Mentorship Matter in GovCon AI

Here’s the hard truth: having a great AI product isn’t enough.

The companies that win federal contracts aren’t just innovative—they’re fluent in the language of government procurement.

That means knowing:

• Which contract vehicles to get on

• How to interpret federal spending data

• How to engage small business offices effectively

• And how to position your company before the competition even shows up

That’s exactly what I built GovClose to do. We train business owners, consultants, and even corporate teams on how to master the contracting process—from the basics to advanced federal data analytics. Thousands of GovCon professionals have gone through our programs, and many of them are now winning the kinds of contracts most people think are out of reach.

What You Should Take Away

The federal government isn’t asking if it will adopt AI. It’s already happening. The only question is: who will be the companies that capture those opportunities?

Here are the key lessons:

• AI is mission-critical. From student loans to fighter jets, AI is already embedded in federal operations.

• Proof-of-concept projects matter. Small pilots like Aiden show the government is open to testing new ideas.

• The VA creates opportunities for small businesses. Especially SDVOSBs looking to break into federal AI contracts.

• The military is going all-in. Autonomous AI in combat scenarios is no longer science fiction.

• Engage early. Sources sought notices are where the real opportunities start.

• Learn the codes. NAICS and PSC codes unlock where AI contracts are actually being placed.

• Invest in training. Mastering the government’s process is just as important as having a strong AI product.

If you’re serious about building a business in this space, now is the time to act. The wave is already here—you just have to decide if you’re going to ride it.

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