Federal Systems Integrators (FSIs) say artificial intelligence (AI) is essential to mission success, but many remain in pilot mode, according to new research released in September by MeriTalk, Dell Technologies, and NVIDIA.
The study, From Sandbox to Scale: The People, Processes, and Platforms Needed to Accelerate AI in FSIs, surveyed FSI IT leaders. Ninety-five percent of respondents call AI mission-critical, and 89% credit generative AI (GenAI) with measurable productivity gains. Yet only 28% report scaling or embedding AI across their organizations, a gap that highlights both opportunity and risk as FSIs work to advance internal AI maturity and deliver on rising public sector demand.
FSIs report gains in workforce productivity (57%), software development (51%), proposal workflows (45%), and knowledge management (43%).
Still, 95% say they are more likely to start a new pilot than expand an existing one – a significant roadblock to realizing AI benefits and impact.
Internally, 96% of FSIs have seen projects stall, and externally, just 51% of AI-related contracts move beyond pilots. Top roadblocks include governance and compliance (36%), integration challenges (33%), cybersecurity gaps (33%), and outdated infrastructure (31%).
Those effectively moving beyond pilots are investing across three fronts: people, processes, and platforms. Leaders point to giving staff time to explore AI tools, embedding AI goals into leadership performance reviews, creating sandbox environments with formal governance, and adopting scalable cloud and modern data infrastructure with observability tools. FSIs also rank scalable, secure infrastructure (44%) and an AI-fluent workforce (41%) as the top drivers of AI success over the next three years.
Looking ahead, 83% of FSI leaders have noticed an increase in public sector requests for proposals (RFPs) that include agentic AI, with 45% now saying it’s a “common requirement.” Explainable models, predictive analytics, and AI-powered cybersecurity are expected to become table stakes for winning future contracts.
“To move beyond pilots, organizations need dedicated AI leadership, scalable computing resources, and clear roadmaps that tie projects directly to mission outcomes,” the report concludes.
For more insights, download the report to understand:
- Which AI use cases FSIs expect to define future RFPs;
- How workforce enablement and cyber resilience are shaping next-generation delivery; and
- What separates pilots from scaled deployments in FSI environments.