Artificial Intelligence (AI) is reshaping entire industries, including the US federal government, where it's moving from an emerging technology to a central strategic priority. The MeriTalk 2026 Federal CIO Forecast confirms this shift, with AI and infrastructure modernization rocketing to the top of the priority list and cybersecurity remaining the bedrock for all initiatives.
At the center of this transformation is a new workforce—one that includes both human employees and autonomous non-human identities, such as AI agents. The 'scaling paradox' remains the central risk: how to rapidly deploy AI and new technologies without exponentially increasing security vulnerabilities. The solution lies not in more point products, but in a unified identity security fabric that simplifies control and strengthens protection.
Here’s how Okta’s identity security fabric maps directly to the top U.S. federal CIO priorities for the year ahead:
AI and the scaling paradox
The White House’s focus on AI adoption (as per OMB M-25-21) mandates that agencies strive to utilize and scale existing tools to be more efficient and avoid new bureaucracy. However, this push for AI often stalls due to governance and compliance blocks. The real risk isn’t in adopting the technology; it’s in managing the volume of new, non-human identities accessing critical resources—applications, data, and APIs.
Okta’s Solution: Okta is focused on securing AI agents with centralized controls, policy enforcement, and auditability, providing the necessary governance that is often lagging in AI adoption. Expanding coverage for every identity, every use case, and every resource will help ensure there are no gaps for an attacker to exploit.
Cyber underpins all
Cybersecurity remains foundational. CIOs are embedding Zero Trust principles and proactive security across all IT initiatives. In fact, one U.S. federal CIO states their focus is to “create a secret fabric based on zero trust principles…[in order] to make sure nothing bad happens in FY27, full stop.”
Okta’s Solution: We refer to this CIO’s “secret fabric” as an identity security fabric. Think of it as the central nervous system of your security. It gives you comprehensive visibility by ‘threading’ together user context, ecosystem signals, and policies in one place. Crucially, it automatically detects and responds to identity threats, reviewing and adjusting user access in real-time based on risks. This is the backbone for a modern Zero Trust architecture.
Staffing for the future
80% of CIOs report that staffing and skill gaps are the biggest roadblocks to technology priorities. This is compounded by the need to manage a growing portfolio of complex, fragmented security tools.
Okta’s Solution: Managing the entire identity lifecycle for employees, contractors, and AI agents through a single fabric simplifies IT operations and frees up scarce security staff from manual tasks. The fabric also helps ensure frictionless and secure human access to AI tools, systems, and training, enabling upskilling while maintaining strict security boundaries.
Funding flexibility and enterprise consolidation
Every CIO surveyed is actively cutting IT costs, and 80% face formal savings mandates. To meet these demands, federal leaders are pursuing system consolidation, enterprise licensing, and shared services. Nine out of ten federal leaders say adopting an enterprise mindset is good for federal IT.
Okta’s Solution: Okta’s platform directly addresses the need to eliminate fragmented identity solutions. By consolidating identity services across employees, contractors, and non-human agents, Okta helps agencies maximize the value of funding mechanisms like the Technology Modernization Fund (TMF)—a model we have successfully leveraged with agencies on their modernization journey. This enterprise approach provides true cost efficiency that optimizes funding for mission priorities.
Ready to enable Zero Trust governance, accelerate AI adoption, and drive cost-efficiency? Sign up for updates on Okta’s Gov Identity Summit, to be hosted on April 21, 2026, to hear firsthand.
