Integrating smart grid technologies represents a pivotal advancement in modernizing electrical grids and enhancing efficiency, reliability, and sustainability. This publication explores the role of advanced procurement strategies, specifically leveraging artificial intelligence (AI) and machine learning (ML), in streamlining the sourcing and integration of smart grid components. By examining current challenges, potential solutions, and the impact on national security and economic stability, this paper aims to provide a comprehensive framework for the effective implementation of smart grid technologies. The traditional electrical grid, characterized by its centralized generation and unidirectional power flow, faces numerous challenges, such as inefficiency, susceptibility to outages, and inability to integrate renewable energy sources effectively (Brown et al., 2020). The transformation to a smart grid infrastructure, which incorporates digital communication technology and advanced sensors, promises significant improvements. However, the transition is fraught with challenges, particularly in the procurement and integration of the necessary components. One of the primary challenges in smart grid integration is the complexity of supply chains. The procurement of smart grid components involves multiple stakeholders, including manufacturers, suppliers, and regulatory bodies. This complexity often leads to delays, increased costs, and inefficiencies (Smith & Wang, 2019). Additionally, the high initial costs of smart grid technologies pose a barrier to widespread adoption. Traditional procurement methods struggle to balance cost-efficiency with the need for high-quality, durable components, often resulting in budget overruns or compromised quality.