The Rise of AI in Defense: Innovations Shaping the Future of Warfare

AI in defense market

In the global defense sector, artificial intelligence or AI offers key applications. The AI-based tools in the defense landscape can be integrated into multiple types of equipment to enhance their capabilities, like in surveillance systems. The AI-based tools and platform can also be integrated into radars, cameras, sensors, and various testing equipment, which offers a wide range of applications in the sector. In the defense sector, artificial intelligence also offers its application in cyber-security, recommission, and equipment manufacturing.

The growth of the global growth of artificial intelligence technologies and the integration of AI-based tools across multiple industries are expected to boost the application of AI in defense sector. Similarly, the increasing global investment in AI-based technology research and development is also expected to boost the capabilities of the platform across multiple industries. Various countries, and organizations across the globe introduced key investment schemes to develop AI-based technology, enhancing the capability and efficiency of the AI-based tools.

Use Case:

  • Cybersecurity– In the cybersecurity sector of the defense industry, artificial intelligence offers a critical role in monitoring, analyzing, and detecting any fraudulent activities, and helps in keeping the cloud network secure. Artificial intelligence also helps to automatically detect multiple threats simultaneously and helps in identifying unknown attack vectors.
  • Surveillance– Artificial intelligence also helps enhance border surveillance in the defense sector. The artificial intelligence-based tools and platforms can be integrated into cameras, sensors, and radars to detect any threats. In the border surveillance category, artificial intelligence helps in detecting border intrusions in different weather conditions. It can also help in enhancing the accuracy of the defense operations.
  • Equipment Manufacturing and Training– In the training and manufacturing of the defense sector, AI-based technology helps boost the manufacturing and training process of military equipment.

1. Increasing global cases of cyberattacks and data breaches

The growing global cases of cyberattacks and data breaches are among the key factors propelling the growth of AI-based platforms in the defense sector. In the cyber-security landscape, AI-based tools have the capability to detect and analyze any fraudulent activities and can help in monitoring cloud connections. The IT Governance UK, in its report, stated that in 2023, a total of 2,814 incidents of cyberattacks were recorded, with about 8.214 billion records breached. In the global cases of data breaches, about 3.8 billion data breaches were recorded in the DarkBeam, a UK-based organization, followed by the 1.52 billion data breaches of the Real Estate Wealth Network of the USA.

Figure 1:  Global Cases of Record Breaches, Billion, 2023

cases of record breaches

Source: IT Governance, UK

 2. Growing global defense expenditure

The growth in military expenditures across the globe is also expected to propel the demand for AI in the defense sector. With the growth in the global expenditure of the defense sector, the integration and research & development in the technological sector is expected to grow significantly. The Stockholm International Peace Research Institute, an international institute, in its report stated that in 2023, global military expenditure witnessed a growth of 6.8% from 2022, with total military expenditure recorded at US$2,443 billion. In the global military expenditure, the USA accounted for a total military expenditure of about US$916 billion, followed by US$296 billion of military expenditure of China, and US$109 billion of Russia. The military expenditure of China grew by 6% in 2023 over the past year, whereas the expenditure of Saudi Arabia and India, grew by 4.3% and 4.3% respectively.

The US Army, in its April 2024 press release stated that the US Army invested about US$50 million for the development of artificial intelligence and machine learning solution, which is under its AI/ML open-topic solicitation.  Similarly, the Ministry of Defense of the UK stated that in its overall military expenditure, the Defence and Security Accelerator of the nation allocated about GBP 49 million, for about 249 projects.

3. Increasing investments in the AI sector

The growing investments in AI-based technological development by governmental organizations are also expected to boost the utilization of artificial intelligence in the global market. Various nations across the globe, like India, the USA, China, Japan, and Canada have introduced key policies and investment schemes, to propel the development of artificial intelligence. The policies are aimed to boost the research and development of the technology, and integration of AI-based tools and platforms across multiple industries, including defense.

For instance, the Ministry of Electronics and Information Technology of India, or MeitY introduced the IndiaAI 2023 policy, which is aimed to boost the development of artificial intelligence in the nation. The department further stated that the policy also aims to develop Responsible AI and Ethical AI for the nation. Similarly, in 2023, the US Government announced foreign assistance funding of about US$15 million, to develop artificial intelligence across the globe.

Key Developments

  • In November 2024, Operant AI, Inc., a global leader in the defense platform, announced the launch of its 3D Runtime Defense, designed for live cloud and AI workloads. The runtime platform has the capability to detect vulnerabilities in AI systems and offers live workload mapping. The platform also offers real-time monitoring of various ghost applications and helps in tracking the flow of shadow data.
  • In November 2024, the Defence Research and Development Organisation (DRDO) in its press release stated that the Indian Armed Forces, Defence Research and Development Organisation (DRDO), and Department of Defence Production (DDP) launched the e-Tarang platform, which enabled with AI. The platform aims to enhance the spectrum management of the defense sector. The agency stated that the platform was developed by a partnership between Bhaskaracharya National Institute for Space Applications and Geo-informatics.

In the global defense sector, AI-based technology is expected to offer critical applications. The AI-based technology helps enhance the capability of multiple key defense sectors, which include surveillance, cybersecurity, manufacturing, and testing among others. With the growing governmental investments in multiple countries across the globe for the development of artificial intelligence technology, the utilization of the technology in the defense sector is also expected to witness significant growth.

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