A new executive order issued this week by President Donald Trump authorizes the Pentagon to use artificial intelligence to identify vulnerabilities in the department’s supply chains.
A key objective of the EO on “Securing America’s Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials” is to limit the use of waivers for the procurement of covered materials under 10 USC 4872.
“Despite the long-standing prohibition on the use of sensitive materials derived from geopolitical adversaries, defense contractors have historically under-prioritized domestic production and resiliency. My Administration will ensure that the statutory requirements of 10 USC 4872 are strictly adhered to and result in resilient domestic and allied supply chains,” Trump wrote in the directive.
He directed Secretary of Defense Pete Hegseth to develop policies and implementation guidance within 180 days that would require all prime contractors and subcontractors to help “map and illuminate” critical supply chains for all acquisitions “that support, implicate, or are related to the national security of the United States, as determined by the Secretary, from the raw materials to the finished products that such contractors deliver to the War Department.” (Department of War is the Trump administration’s preferred name for the Department of Defense.)
Under the new policy, military contractors must provide the Department of Defense with a complete, contracted bill of materials that traces all components, parts, equipment and software to the origin of raw materials in their supply chains. They must also implement procedures for conducting risk assessments and “proactively” vetting suppliers and subcontractors, among other things.
The U.S. defense industrial base is vast, reportedly comprising hundreds of thousands of companies. Trump’s executive order said the Pentagon could potentially use AI to facilitate its supply chain mapping efforts.
“The Department of War, in response to the vulnerabilities, bottlenecks, and single points of failure identified in the contractor procurement information, shall map national security vulnerabilities related to the procurement of critical raw materials or other links in the supply chain, utilizing any tools and technologies incorporating artificial intelligence to assist in doing so. The Secretary shall account for identified vulnerabilities, bottlenecks, and single points of failure before granting waivers pursuant to 10 USC 4872(c)(1), or (e), in accordance with the requirements of this order,” Trump wrote in the edict.
The President also suggested that new software may be needed to facilitate testing and qualification of new sources and materials for prime contractors and subcontractors. Within 90 days, the Pentagon chief was ordered to present a new strategy in this direction.
“As part of this strategy, the Secretary will identify and take steps to repeal any regulations that prevent rapid review and qualification of sources and materials necessary for defense production,” Trump wrote.
He noted that the Defense Department should try to prevent small businesses, non-traditional defense contractors and new entrants to the defense sector from being “unduly burdened” by new regulations related to the implementation of its EO.
According to the order, contractors requesting exemptions under 10 USC 4872(c)(1) or (e) may submit a formal remediation plan to address vulnerabilities in their supply chains.
Trump suggested that providers face severe penalties for misconduct.
If Pentagon leadership “determines that a prime contractor or subcontractor has committed fraud or willfully misled the federal government in any part of its mitigation plan or has otherwise knowingly or intentionally failed to implement its mitigation plan on the terms and conditions specified and approved by the Secretary or his designee in the mitigation plan, the Secretary shall take such action and exercise any contractual remedies as the Secretary deems appropriate in accordance with applicable law,” the president wrote, adding that the department “may additionally refer the matter to the Attorney General.” Investigations and, if necessary, prosecution.”
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Written by Jon Harper
Jon Harper is Editor-in-Chief of DefenseScoop. He leads an award-winning team of journalists who provide breaking news and in-depth analysis of military technology and the way it influences the way the Department of Defense operates and modernizes. You can also follow him on X: @Jon_Harper_
https://defensescoop.com/2026/07/23/trump-authorizes-ai-map-defense-supply-chains/
