Cybersecurity in government contracting: Key strategies, AI tools, and trends to watch

When government contractors think about cybersecurity, you may first think about meeting federal regulatory requirements such as the ones set out by the Department of Defense’s Cybersecurity Maturity Model Certification (CMMC) Program 2.0. 

And while understanding how to comply with that is important for GovCons, it’s just the beginning when it comes to why you need to prioritize cybersecurity.  

Today’s contractors face new and ongoing digital threats while also working to keep up with regulations. The 2024 GAUGE Report highlights how top GovCons are viewing many business priorities – including cybersecurity – and how tools like AI are making it easier to keep data safe and meet compliance needs​. 

Why cybersecurity matters for government contractors 

Government contractors need a strong cybersecurity posture to win and keep contracts. Regulations such as the CMMC 2.0 require strict security standards. CMMC 2.0 means many companies need to pass third-party cybersecurity checks, requiring this in most circumstances as a condition of an award. This level of security helps contractors keep their data safe and build trust with government clients​​. 

After many fits and starts, the DOD published the proposed rule for CMMC 2.0 in the Federal Register in December 2023. The final rule, which will take the existing model from five cybersecurity levels to three, has officially gone into effect.  

The cost and opportunity impact of CMMC 2.0 will be massive, particularly for firms at Level 2 and up. While some Level 2 firms may be able to self-assess, most will require third-party assessments. For Level 3 firms, DCMA-led assessments with the Defense Industrial Base Cybersecurity Assessment Center (DIBCAC) will be mandatory. 

About 40% of our respondents will be significantly affected. With only an estimated 50+ authorized third-party assessors currently in play, delays and backlogs are likely, especially for Level 2 firms. It is also alarming to note that over one-third of GAUGE Report respondents do not understand CMMC 2.0 requirements well enough to determine their level. 

These numbers signal a clear need for GovCons to prioritize CMMC 2.0 preparation to remain compliant in 2025 and beyond. 

Failure to maintain regulatory compliance is only one drawback of having less than stellar cybersecurity practices in place, however. If your company suffers a data breach and compromises client data, you could face a loss of client trust, penalties, or fines.  

Cybersecurity insights from the GAUGE Report 

How are some of the top GovCons thinking about cybersecurity? The 2024 GAUGE Report provides helpful insights into GovCon cybersecurity. Here are some key takeaways from the report:  

• Compliance is time-consuming: Over a quarter of firms report spending more than 40 hours each month just to meet compliance requirements​ – many of which include cybersecurity​ regulations. 

• Cybersecurity is a priority for all and a concern for many: 18% of respondents cited cybersecurity as an issue that “kept them up at night.”  Companies using AI for cybersecurity report faster, more accurate detection of risks and fewer incidents​. 

• CMMC Level 2 readiness is a major area of concern: Many government contractors are preparing for CMMC Level 2, which is now a federal requirement and includes third-party security assessments​. 

How AI and cybersecurity will intersect for GovCons  

As GovCons embrace AI to help them become more efficient, they’ll need to keep cybersecurity at top of mind.  

While many companies can see the value in areas such as content generation, data analysis, predictive analysis, operational efficiency, and project delivery, they also need to remain cognizant of potential security risks involved with using AI.  

What this means for GovCons is that before implementing AI, they should ask themselves: do we understand the cybersecurity, ethical, compliance and operational risks of using this technology? Where is our organization at in terms of AI maturity?  

Real-world AI applications in cybersecurity 

For government contractors, being able to detect and respond quickly to threats is crucial. AI-powered cybersecurity tools help in several ways: 

• Finding and fixing weak spots: AI tools can predict and address risks before they become problems, allowing for proactive protection​. 

• Automating responses: When AI detects a threat, it can take immediate action to contain it, which reduces potential damage​. 

• Understanding data on attacks: Self-evolving machine learning tools can collect information on different types of attacks happening to GovCon systems. They can then train themselves to understand how to respond to an attack and which addresses to blacklist.  

Best practices for using AI to support your cybersecurity efforts 

Whether you’re using AI to bolster your cybersecurity posture or you simply want to use AI in other areas as responsibly and securely as possible, there are a few guidelines you can follow:  

• Identify where AI will be most useful: Look at which parts of your security operations will benefit most from AI, such as threat detection or monitoring​. 

• Focus on data quality: AI needs accurate data to work well, so make sure data is clean and updated regularly​. 
• Provide training on compliance: Teams need to understand data handling and security best practices to get the most from AI​. Compliance training ensures that data is handled carefully and securely, minimizing the chances of a data breach.  
  
  
• Don’t neglect data security: When implementing new AI programs or capabilities, keep the security of your data at the forefront. How will the AI use your data’s organization? Will the data train the model? For more considerations in this area, consult the National Institute of Standards and Technology (NIST) Trustworthy & Responsible AI Resource Center. 
  
  

To keep up with new threats, contractors should regularly review and update cybersecurity practices, particularly with regard to how they apply to the use of AI. Routine checks help ensure that security stays effective and current​. 

Building strong cybersecurity for today and tomorrow 

For government contractors, using AI with cybersecurity in mind – and to strengthen your cybersecurity – is a recipe for a more secure future. To do this, you’ll need to follow best practices, keep up with new trends, protect data, and ensure you continue to meet government standards. With new risks ahead, contractors should invest in flexible tools that can adapt as threats evolve. Staying current with the latest regulations, such as upcoming CMMC requirements, and using advanced security tools will help contractors stay prepared​. 

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