I'm sure there's a pitch to be made, but consciousness doesn't seem to me to be a killer app for the military. In fact Dolores repeatedly refuses to kill people even when it's in her best interest. Only one person has died before the last episode, so how could you convince anyone that it's more dangerous than nukes? The other tech in the show seems pretty advanced so I'm sure the military is doing just fine for themselves. And the people are there because outside life is boring, so there's no cold or hot wars where they need an advantage ASAP.