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The AI bubble in Defense: What to expect in a burst


Defense organizations have accelerated existing efforts to identify use-cases for AI models and apply them in compliance with existing or new organizational standards.

If Artificial Intelligence is being developed in a financial bubble, and if this bubble bursts, several defense-related trends may be set into motion.

First, defense contractors selling AI products or services may revert to an earlier tendency to re-package AI technologies under more palatable monikers, like “data analytics.”

Second, national defense organizations in the United States and elsewhere may take up the mantle of basic AI research & development suitable for their own ends, capturing the value left in the bubble’s wake.

Finally, defense contractors – facing a smaller pool of available capital to fund AI R&D – would face greater pressure to tailor their offerings to the mitigation of shortcomings in state-of-the-art AI models for specific defense applications.

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