The Bushmaster project started as an offshoot of the US Army's MICV-65 program that was attempting to introduce a new infantry fighting vehicle to replace their existing M113 armored personnel carriers. Part of this program called for a new scout vehicle to replace the M114, a parallel development taking place under the XM800 Armored Reconnaissance Scout Vehicle. Both the XM800 and the cavalry version of the XM701 MICV vehicles were armed with the M139, a US-built version of the Hispano-Suiza HS.820 20 mm autocannon. During the testing phase, the Army eventually rejected the XM701 and started work on a newer design known as the XM723. Soon after the XM800 was also rejected. This led to the combination of the two programs, moving the scout role to the cavalry version of the XM723.