The key to lower costs and increased AI ROI
Cost is one of the most significant factors federal agencies consider when adopting AI, open source, and cloud technologies. In our Federal Software Reimagined research, 38% of agency leaders cited cost as a major barrier to progress.
But cost challenges are not limited to budget line items. Agencies also incur substantial opportunity costs when decisions are delayed or when ineffective software choices force teams to course‑correct late in the process. In both cases, time lost can translate into higher long‑term costs and reduced mission impact.
In this short video, ICF experts discuss what our research reveals about the relationship between cost, decision‑making, and AI return on investment—and why organizational structure plays a critical role in avoiding costly delays.
What this means for government leaders
Our research suggests that agencies can reduce both financial and opportunity costs by bringing the right expertise together earlier in the process. Cross‑functional teams—sometimes referred to as tiger teams or fusion teams—combine policy, technology, and mission perspectives from the outset, helping agencies evaluate tradeoffs more effectively and move forward with greater confidence.
By enabling faster, more informed decision‑making, these teams can help agencies strike a better balance between active risk (making the wrong choice) and passive risk (waiting too long to act)—a balance that is essential for achieving stronger AI ROI over time.
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