For nearly two years, much of the conversation around artificial intelligence has focused on the jobs technology may eventually replace.

This week, one of the largest Navy contract awards announced this year highlighted a different reality.

The U.S. Navy awarded contract modifications totaling $76.6 billion to General Dynamics Electric Boat and HII’s Newport News Shipbuilding to support the construction of 14 submarines, including nine Virginia class and five Columbia class vessels, while also strengthening shipyard infrastructure, supplier capacity and production capability.

The announcement is significant for national defense.

But it also highlights a broader reality.

Despite rapid advances in artificial intelligence, some of the country’s most important work still depends on people.

Building a nuclear powered submarine requires thousands of skilled workers, including welders, electricians, pipefitters, machinists, engineers and countless specialized trades, working together over several years. The Navy’s latest investment underscores the continued importance of the skilled workforce required to build these vessels.

The work will be shared between General Dynamics Electric Boat, HII’s Newport News Shipbuilding and a nationwide network of suppliers. For Hampton Roads, the announcement reinforces the region’s central role in America’s submarine industrial base.

Newport News Shipbuilding is one of only two shipyards in the United States capable of building nuclear powered submarines and the nation’s only builder of nuclear powered aircraft carriers.

The shipyard has long been one of the region’s largest employers, supporting thousands of additional jobs across suppliers, manufacturers and workforce training organizations throughout Virginia.

But perhaps the biggest takeaway isn’t simply the size of the contract.

It’s what it says about how we define innovation.

During the 2026 State of Innovation Address, Fairlead President and CEO Fred Pasquine challenged the audience to rethink what an innovative company can look like.

“Why couldn’t that unicorn be a shipbuilder? It doesn’t have to be a true software technology company. It could be a shipbuilder that’s successfully integrating all the technology into its processes.”

In the startup world, a unicorn is a privately held company valued at more than $1 billion, typically a fast growing software or technology company backed by venture capital.

Pasquine’s point was that innovation isn’t confined to software companies. Some of the world’s most advanced technology is being developed by manufacturers, defense contractors and shipbuilders solving increasingly complex engineering challenges.

Companies building ships and advanced defense systems continue adopting new technologies alongside the skilled workforce needed to deliver increasingly complex programs. The Navy’s latest award demonstrates that innovation in these industries continues to rely on both technological advancement and specialized human expertise.

This week’s announcement is a reminder that innovation isn’t always measured by app downloads, venture capital rounds or lines of software code.

Sometimes it’s measured in the ability to build one of the world’s most complex machines.

The contracts provide long term visibility for the companies and suppliers responsible for delivering the Navy’s next generation of submarines, supporting continued investment in facilities, supply chains and the workforce needed to execute the programs.

Artificial intelligence will undoubtedly continue changing how Americans work.

But one of the largest Navy contract awards of the year also reminds us that America’s future won’t be built by software alone.

It will also be built by the skilled workers, manufacturers and innovators turning some of the world’s most advanced technologies into reality.