WSJ What’s News: Detailed Summary of Episode "Booz Allen CEO on Silicon Valley’s Turn to Defense Tech: ‘We Need Everybody.’"

Release Date: June 29, 2025
Hosts: Tim Higgins and Christopher Mims
Guest: Horacio Rozansky, CEO of Booz Allen Hamilton

Introduction

In this episode of WSJ What’s News, hosts Tim Higgins and Christopher Mims engage in a compelling conversation with Horacio Rozansky, the CEO of Booz Allen Hamilton. The discussion delves into the intersection of technology, national security, and the evolving role of Silicon Valley in defense tech. Rozansky provides insightful perspectives on how Booz Allen navigates government efficiency initiatives, the burgeoning AI race with China, and strategic partnerships with major tech firms.

Impact of the Trump Administration's Efficiency Efforts

Rozansky begins by addressing the significant influence of the Trump administration's push for government efficiency on Booz Allen's operations. With 98% of Booz Allen’s revenue stemming from U.S. government contracts, the administration's efforts to streamline and cut costs have had profound implications.

Rozansky (04:24): "There's so much duplication in the way we are regulated and the way the government does things that a lot of money could be saved."

He emphasizes the necessity of these efficiency measures, acknowledging the complexities of the federal structure with its extensive legislative bodies. Rozansky maintains that while debates on methods are valid, the overarching goal of reducing inefficiency is beneficial.

Booz Allen as a Technology Company

Transitioning from traditional management consulting, Rozansky highlights Booz Allen's transformation into a cutting-edge technology company. He traces the company's evolution, noting its pivotal role in national security post-9/11 and its shift towards AI and advanced technologies.

Rozansky (08:33): "We're working on agentic AI, physical AI, and adversarial AI—everything from autonomy to humanoid robots to digital twins."

Booz Allen has heavily invested in artificial intelligence since 2014, positioning itself at the forefront of AI integration within government and defense sectors. This strategic pivot underscores the company's commitment to leveraging advanced technologies for national security purposes.

AI Development and Competition with China

A significant portion of the discussion centers on the AI race between the U.S. and China. Rozansky expresses concerns over China's approach to AI, particularly their focus on models that operate on cheaper, simpler hardware, making them more accessible globally but potentially less secure.

Rozansky (27:44): "If we all believe as I do, that AI is the dominant technology of the next 20, 25 years, we need US leadership to be in front there."

He argues for the necessity of maintaining U.S. leadership in AI to ensure that technological advancements align with American values of an open and secure internet, contrasting it with China's more controlled and regulated approach.

Partnerships with Tech Firms for National Security

Rozansky discusses Booz Allen's strategic partnerships with leading tech companies like Meta, Palantir, and SHIELD. These collaborations aim to adapt commercial technologies for mission-critical national security applications.

Rozansky (14:22): "We're a co-developer. A lot of these technologies were not architected to serve in the battlefield as it exists today."

By building atop existing platforms, Booz Allen accelerates the deployment of robust and reliable technologies tailored to the unique demands of military and defense operations.

Edge Computing and Resilience in the Field

A pivotal topic is edge computing and its critical role in enhancing the resilience and effectiveness of military operations. Rozansky explains how Booz Allen modifies commercial technologies to function seamlessly in challenging environments where connectivity is unreliable.

Rozansky (16:37): "If you think about a world where we want to keep our troops safe in the field and we want to have drone swarms… we're going to need physical AI capabilities."

He cites a military exercise where Booz Allen's technology maintained operational integrity despite simulated disruptions, unlike traditional systems that failed under similar conditions.

AI in Modern Warfare: Ukraine's Case

The conversation shifts to Ukraine's innovative use of commercial AI technologies in warfare, highlighting a new era in military strategy. Rozansky commends Ukraine for repurposing off-the-shelf AI and computer vision to enhance their defense mechanisms.

Rozansky (23:56): "Ukraine has demonstrated that necessity once again is the mother of invention… using all commercial technology… has been impressive."

He notes that such applications of AI not only redefine defense tactics but also prompt global powers to re-evaluate their technological and strategic approaches.

Ethical and Security Concerns in AI Deployment

Addressing the ethical and security implications of AI, Rozansky warns against the potential vulnerabilities introduced by adversarial AI. He underscores the importance of embedding robust security measures from the early stages of AI development to prevent malicious manipulations.

Rozansky (34:13): "If our algorithms become untrustworthy because we're not sure if they've been affected by an adversary, hesitation costs time, and time is lives in national security settings."

He advocates for proactive strategies to safeguard AI systems, ensuring their reliability and integrity in critical applications.

Recommendations for Tech Companies

Rozansky offers insights for tech companies navigating national security partnerships. He emphasizes the importance of integrating security considerations into the foundational architecture of technologies rather than as an afterthought.

Rozansky (31:05): "If the government was an early adopter… you would create the architecture so that you don't have the problem of disconnection, so that you don't have some of the issues around cybersecurity…"

He urges companies to collaborate closely with government entities from the inception of technology development to align with national security requirements effectively.

Conclusion

In concluding the episode, Rozansky reiterates the critical role of speed and innovation in maintaining national security leadership in the face of rapidly advancing global technologies. He calls for a collective effort from both government and private sectors to foster an environment where technological advancements can be swiftly and securely integrated into defense strategies.

Rozansky (30:39): "Speed is our most important weapon in a rapidly evolving geopolitical and technological environment."

The hosts thank Rozansky for his insightful contributions, highlighting the importance of such dialogues in understanding the future trajectory of technology and national security.

Notable Quotes

• Horacio Rozansky (04:24): "There's so much duplication in the way we are regulated and the way the government does things that a lot of money could be saved."

• Horacio Rozansky (08:33): "We're working on agentic AI, physical AI, and adversarial AI—everything from autonomy to humanoid robots to digital twins."

• Horacio Rozansky (14:22): "We're a co-developer. A lot of these technologies were not architected to serve in the battlefield as it exists today."

• Horacio Rozansky (23:56): "Ukraine has demonstrated that necessity once again is the mother of invention… using all commercial technology… has been impressive."

• Horacio Rozansky (34:13): "If our algorithms become untrustworthy because we're not sure if they've been affected by an adversary, hesitation costs time, and time is lives in national security settings."

This episode provides a comprehensive exploration of Booz Allen Hamilton's strategic positioning at the nexus of technology and national defense. Rozansky's insights offer a valuable perspective on the challenges and opportunities that lie ahead in the rapidly evolving landscape of AI and defense technology.