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Off-topic: Given that state cyber entities maintain networks isolated from the internet, how do they adapt to the rise of tools like Co-Pilot and ChatGPT in the software engineering landscape? This kind of security setup inherently restricts access to such tools, potentially slowing their pace. Thoughts?

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Don't use them, duh. Pay enough money to get a copy on premises if it ever gets useful enough for that. In the time they'll get around to changing their procedures, models will get small enough that it will be a non-issue.

Disclaimer: layman's opinion, I only know what internet knows.

I work at a large SF based SaaS, there's so much money in that space the company spun up a team to build an air gapped version of our product for restricted networks.

It's definitely much slower than the private sector, but if the agencies decide they have a use case, they'll throw money at it until it works in house.

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