Artificial Intelligence will Arm Defense Contractors for Global Growth

Artificial Intelligence (AI) is rapidly changing a wide range of businesses and industries. It is also poised to change the character of the future battlefield and the pace of threats we must face. Therefore, defense departments of all the major economies, globally have directed their militaries to accelerate the adoption of AI and the creation of a force fit for our time. Appreciating this vision entails identifying suitable use cases for AI across the length and breadth of the defense departments, swiftly directing solutions, and scaling achievements across enterprise.  Nations like China and Russia, are making substantial investments in AI for military purposes, including in applications that raise questions regarding international norms and human rights. These investments threaten to erode the technological and operational advantages of NATO militaries.

In the near to medium term, integrating AI into the strategy of conventional battle networks will immensely improve the functioning of existing platforms and forces. Major defense contractors will be able to preserve their advantage during this stage. However, as the competencies of AI touch an inflection point, defense departments in the US and European Union will turn to smaller AI based systems—and will count on nontraditional companies to provide them. This is because AI experts are already effecting step change enhancements to legacy systems and are developing scale, expertise, and faith within the defense department. We see this happening already. For instance, in the U.S, more than 60% of the AI focused contracts in the President’s Budget for Fiscal Year 2017 were granted to nontraditional defense companies or small prime contractors. The transition will begin as AI continues to mature and defense departments starts to pair AI powered systems with human soldiers. At this stage, acquisition urgencies will change and defense departments will look to AI powered systems to perform an extensive range of missions.

As per the latest study – “Global Artificial Intelligence for Defense - Market and Technology Forecast to 2028” carried out by Amsterdam based Market Forecast, the global market for Artificial Intelligence for defense is projected to grow at a CAGR of 10.29% between 2020 and 2028. This market study also focusses on 20 of the most sought- after companies in the AI industry. The report is valuable for individuals and organizations who wants to understand the dynamics of AI systems in the defense industry and the implementation and adoption of these autonomous services.

Source: ASDReports - Market Research
Date: Mar 17, 2020