The Consumer Electronics Show (CES) is more than a glimpse into the future of technology—it’s a convergence of industries, ideas, and innovation on a global scale. The difference from a defense trade show could not be starker.
Walking the halls of CES, it’s impossible not to feel the palpable energy of visionaries and creators showcasing what’s next. The feel and tone are edgier, faster, more interactive, and, yes, more expensive than any defense trade show I have attended. Yet, for those of us who understand the intersection of government funding, public policy, and commerce, CES offers a unique lens to explore how shifts in tech applications and innovation will fuel change in government buying practices.
Bridging Commercial and Federal Markets
Federal buyers and commercial innovators often operate in parallel universes, but their intersections are growing more critical. While technology has consistently helped with US productivity and output, the current political momentum confirms that technologies like AI will be central in achieving stated government goals of cost reduction, process efficiencies, and a reduction of bureaucratic bloat.
Key observations:
What do Will.i.am and C-suite executives of Home Depot, Mars candies, Block (they own Square and POS payment systems), and Sam’s Club have in common, and why are they at CES?
They understand their customers extremely well and know that the keys to customer loyalty now rest squarely in personalized, curated, and friction-free experiences. While the E in CES stands for Electronics, the show is more about how technology fits into our lives and serves our needs.
Within minutes of any CES panel of experts commenting on their roles, corporate objectives, and challenges, AI takes center stage in the discussion. It’s coming at us faster than most can imagine.
AI is in the palm of your hand today; it’s on us to incorporate its use correctly.
Recurring observations over the course of attending this show for years:
- Many innovations showcased at CES—from AI to advanced materials—have clear applications for federal agencies, from defense to health.
- Procurement Gaps: Startups and small businesses often struggle to navigate federal procurement, leaving potential partnerships untapped. Those that attempt to scale through private equity (PE) face immediate trade-offs of control. You can go through the Valley of Death, or zipline right over it.
- Industry Crossovers: Sectors like transportation, healthcare, and energy see increasing overlap between public and private initiatives, driving collaborative opportunities. In defense, nothing compares to the emergence of software-driven solutions.
- Professional Dress has changed forever. Smart casual is now normal business attire. I’m reminded of when the culture of Apple clashed with the culture of IBM in the 1980s: T-shirts vs. dark suits and ties. While there is some penetration in defense, it remains highly unusual for a defense BD person not to wear a suit when with their government customer.
As government buyers evolve, so too must the strategies of those engaging with them. Two key dynamics stand out:
- The DOGE Imperative: Data-driven, Outcomes-focused, Government Efficiency (DOGE) is not just a buzzword; it reflects the growing demand for metrics that justify federal investments. Innovators must demonstrate how their solutions deliver measurable results to stay competitive.
- OMB’s Role: The Office of Management and Budget (OMB) exerts a profound influence on spending priorities, even after Congress decides on appropriations. Shifts in guidance—whether focused on sustainability, cybersecurity, or equity—ripple through agency procurement decisions, impacting which technologies will, or even can, make the cut. The power of the OMB Director is extraordinary.
The Energy of CES and Even More Observations
Attending a show of this magnitude is both exhilarating and humbling. The sheer scale, with exhibitors and attendees from every corner of the globe, reminds us of the shared excitement that innovation sparks:
- Global Perspectives: CES highlights how technology transcends borders, fostering collaboration that drives solutions for worldwide challenges. Think of tech as a currency as welcome as US dollars anywhere in the world.
- Momentum Builders: Events like CES don’t just reveal products; they create momentum, setting the tone for industry trends in the year ahead. Delta Air Lines’ CEO used the new Las Vegas Sphere to showcase his keynote. Even a stodgy commercial airline carrier recognizes the need for both reinvention and to capitalize on inertia. If you have not heard of the Sphere, you will see it changes how presentations and concerts can be experienced.
“Proof of life” in digital is a thing—through your devices and delivered in a personalized manner, it’s possible to grade and evaluate the degree of AI you’re looking at.
Agent AI, agentic, and trust are underlying themes in the use of AI in our work. The commercial world is fully integrating its capabilities and not waiting for a final solution to emerge; solutions will evolve.
The discovery of your brand is changing before our eyes—how people find us and learn about us. This landscape changed in less than two years. Joe Rogan commands, in one show, an audience larger than all major cable TV evening programs that air in a given week. YouTube is the largest platform for information consumption right now and growing fast.
Larger companies have EVPs of data. Knowing what data you have at your disposal and how to use it, manipulate it, measure it, and distribute it are business essentials. It’s not just about financial data. Think HR, brand presentation, categorization, and predictive data.
Block (the company that owns Square) holds two prime values: reduce friction and be relevant. If you think about it, those two values express their entire user experience. Big company with big distribution, particularly among small businesses; they say it in four words.
Is a BD funnel the right metaphor given the speed of decision?
Speaking presentation styles. Presenting from the stage in one medium (ppt) is dead. Think immersive use of sight, sound, and texture. It’s not just the story and the emotion. Can you trigger senses with your presentations? How good is your storytelling with your government customer? Do you even tell stories?
Clothing selections. For the first time, I saw no ties. None. Suits are gone. Curated, fashionable, smart casual is everywhere. For a time it was people mimicking the T-shirt look of 1980s Silicon Valley; it has swung back a bit. Ladies dressed up to a degree that caught my attention. Stylish, colors, and comfort.
Intelligence derived from data. Who owns the corpus of data you use or generate?
Streaming experiences and music experiences continue to lead the way in how data is being integrated for the user. Think of being able to engage with the device differently. “Show me that key 3rd down from the 2nd quarter of yesterday’s Chiefs game,” for example. Or asking your car, “Where did John Lennon record ‘Imagine’?” while the song is playing in your car. These are highly simplified examples.
Will.i.am delivered an amazing interview demonstrating incorporation of AI in a meta-like community, overlaid with a new music service (Raidio FYI) (spelling is correct).
Speaking into your phone or device to prompt an extemporaneous exchange about topical events in multiple languages, complete with that region’s vernacular.
His business acumen, speed of delivery of a concept, and ability to partner at scale (Mercedes and LG, for example) identified him as a standout at the show. Quite the businessman.
Final Thoughts
For policymakers, federal contractors, and industry leaders, CES is more than a showcase—it’s a barometer of where innovation meets opportunity. Understanding the evolving landscape of the potential impact of tech on government purchasing—from the metrics-driven ethos of DOGE to the funding directives from OMB—is crucial for leveraging these opportunities. CES is immersive, but you have to immerse yourself to experience it. Government attendance is practically non-existent, and that’s part of a larger problem.
