Pentagon’s AI office eliminates CTO directorate in pursuit of ‘efficiencies’

The Pentagon’s artificial intelligence acceleration hub recently moved to terminate its chief technology officer role and directorate after reviews associated with the Trump administration’s spending and staff reductions campaign revealed inefficiencies, budget materials for fiscal 2026 reveal.

Details on the decision are sparse in the documents, but officials wrote that the Chief Digital and AI Office’s CTO “no longer exists or manages resources.” 

President Donald Trump directed federal agencies at the start of his second term to drastically reduce their workforces and assess existing contracts, with aims to ultimately cut back on what his team views as wasteful spending and inefficiencies. The efforts have included initiatives overseen by Department of Government Efficiency, or DOGE, teams.

While AI is a major priority for the U.S. government under Trump, since then, the Pentagon’s CDAO has seen an exodus of senior leaders and other technical employees.

“As part of broader DOD efficiency efforts, CDAO realized organization efficiencies in FY26, including eliminating the CTO directorate,” a CDAO official told DefenseScoop on Wednesday. “This move has minimal mission impact as CDAO has a strong technical workforce embedded within each of its directorates.”

Budget materials show that the directorate was allocated more than $340 million in fiscal 2024.

The CDAO official declined to share more information regarding how the CTO’s employees, responsibilities and investments were dispersed following the elimination.

Shortly after standing up the CDAO in June 2022, Defense Department leadership hired nearly a dozen senior leaders to serve in its top positions — including Bill Streilein as inaugural CTO. Streilein had previously served as a longtime leader at MIT’s Lincoln Laboratory and is now back at the lab working as a member of its principal staff.