How agencies can use fiscal year-end funds to drive transformation

As the end of the fiscal year approaches, U.S. federal agencies face the perennial challenge of optimizing their remaining budgets.

Often seen as a "use-it-or-lose-it" proposition, this time of year can compel many agencies to resort to short-term spending that does little to advance strategic goals.

However, if viewed through the lens of digital transformation, end-of-year funds provide an exciting opportunity to make meaningful investments that can help sustain momentum and amplify ongoing progress.

After all, digital transformation is not a destination, it’s a journey. While it may be tempting for agencies to spend end-of-year funds on quick fixes or non-strategic projects, doing so can risk missing out on opportunities for significant, long-lasting improvements.

AI that’s ready for business starts with data that’s ready for AI

As agencies look to develop and deploy artificial intelligence at a faster rate, data responsibility has never been more important. Without quality data, agency’s efforts to develop and deploy AI are a house of cards waiting to tumble.

On the other hand, agencies that effectively harness and manage their data will reap the most benefits. But it’s not so simple. Data is exploding, both in volume and in variety. With growth comes complexity. Multiple data applications and formats, on-premises and in the cloud, make it harder for agencies to access, govern, manage and use all their data.

In the short-term, by investing in the right data architecture strategy, including the creation of enterprise-wide standards for data quality and a governance framework for enforcing the standards, agencies can help build trust in AI systems, minimize risks, maximize the value of their data and – most importantly – unlock the full potential of their AI initiatives in the long-term.

Investing in quantum safe

The National Institute of Standards and Technology’s (NIST) recent release of encryption standards to protect against future attacks from quantum computers serves as an inflection point in modern cybersecurity, signaling to U.S. federal agencies (and industry alike) the importance of swapping their at-risk cryptography with the new algorithmic standards that can withstand a quantum attack.

Because quantum computing capabilities aren’t fully realized yet, it’s easy for agencies to postpone preparations. However, changing a security model can take anywhere from two to ten years – and the quantum threat is more than imminent. It’s already here in the form of ‘harvest now, decrypt later’.

Agencies have already started some of the work needed to prepare for the changes, including inventorying and reporting on vulnerable systems and data and estimating the funding needed to migrate to post-quantum standards, but there’s still more work to be done.

To navigate the migration in a way that minimizes business disruptions and associated costs, agencies need to create a quantum-safe transformation strategy now and begin an incremental transition to the new standards.

Facilitating workforce skills transformation that aligns with agency investments

Digital transformation is as much about people as it is about technology. Agencies can begin to foster a culture of continuous learning and adaptation by allocating part of their remaining budgets to workforce training and skills development programs that align with their technology investment.

By investing in workforce education that directly supports their digital transformation journey, agencies can help ensure their priority initiatives are successfully realized.

The end of the fiscal year isn’t just a deadline, it’s a launching pad for future progress

The end of the fiscal year presents a critical window of opportunity for federal agencies to strategically invest in continuing their digital transformation journeys.

By prioritizing cybersecurity, data quality and management, effective AI development and deployment and workforce education and training, agencies can turn remaining budgets into powerful tools for future success.

Thoughtful and targeted investment in digital transformation not only addresses immediate needs but also lays the groundwork for a more efficient, resilient, and forward-looking U.S. federal government.