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AI in Military Market to grow by USD 55.2 billion (2024-2028), rising defense spending amid conflicts driving growth, Report with market evolution powered by AI – Technavio

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NEW YORK, Nov. 15, 2024 /PRNewswire/ — Report on how AI is driving market transformation – The global artificial intelligence (AI) in military market  size is estimated to grow by USD 55.2 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  43.61%  during the forecast period. Increased government spending on defense due to conflicts is driving market growth, with a trend towards growing integration of ai in space-based systems. However, shortage of ai experts  poses a challenge.Key market players include Anduril Industries Inc., BAE Systems Plc, C3.ai Inc, Charles River Analytics Inc., Darktrace Holdings Ltd., General Dynamics Corp., International Business Machines Corp., L3Harris Technologies Inc., Lockheed Martin Corp., Northrop Grumman Corp., NVIDIA Corp., Palantir Technologies Inc., Rafael Advanced Defense Systems Ltd., RTX Corp., Rheinmetall AG, Saab AB, Safran SA, Shield AI, SparkCognition Inc., and Thales Group.

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View Free Sample Report PDF

Forecast period

2024-2028

Base Year

2023

Historic Data

2017 – 2021

Segment Covered

Component (Software, Hardware, and Services), Type (New procurement and Upgradation), and Geography (North America, Europe, APAC, Middle East and Africa, and South America)

Region Covered

North America, Europe, APAC, Middle East and Africa, and South America

Key companies profiled

Anduril Industries Inc., BAE Systems Plc, C3.ai Inc, Charles River Analytics Inc., Darktrace Holdings Ltd., General Dynamics Corp., International Business Machines Corp., L3Harris Technologies Inc., Lockheed Martin Corp., Northrop Grumman Corp., NVIDIA Corp., Palantir Technologies Inc., Rafael Advanced Defense Systems Ltd., RTX Corp., Rheinmetall AG, Saab AB, Safran SA, Shield AI, SparkCognition Inc., and Thales Group

Key Market Trends Fueling Growth

The military sector is increasingly adopting Artificial Intelligence (AI) to enhance security and defense strategies in the face of evolving threats and geopolitical tensions. Defense agencies, technology companies, and research institutions are collaborating to develop AI-powered solutions for situational awareness, proactive defense measures, and agile decision-making. Military applications of AI include autonomous vehicles like drones and military laser systems, decision support systems, and operational efficiency improvements. Security concerns surrounding cybercrime, theft, hacking, and data destruction have heightened the need for advanced AI and Machine Learning (ML) technologies. Defense contractors are investing in technological infrastructure, including AI processors, memory, and quantum computing, to stay ahead of adversaries. Ethical considerations and responsible AI practices are crucial as AI programs process military data and encrypted communication. The industry outlook for AI in the military market is promising, with trends in cognitive electronic warfare, threat detection, anomaly detection, and predictive analysis. Hardware segments like memory, AI processors, and quantum computing are essential for next-generation warfare systems. Private companies like Google and Microsoft are developing AI systems for logistics & transportation, simulation & training, and warfare platforms. Despite the benefits, challenges remain, including ethical considerations, protocols and standards, and the integration of AI into existing defense infrastructure. The military industry must work together to ensure the responsible use of AI in warfare systems, cybersecurity, and other applications. In summary, AI is transforming the military sector, offering solutions for security, defense, and operational efficiency. However, ethical considerations, cybersecurity, and integration challenges must be addressed to ensure responsible use and effective implementation. 

Artificial Intelligence (AI) plays a crucial role in military applications, particularly in the context of space exploration. In space missions, AI enhances data processing, analysis, and communication capabilities. Satellite sensors and camera data are analyzed using AI algorithms to detect objects and potential threats. The integration of AI in space-based systems is a significant trend, driven by its advantages in handling vast amounts of data and improving mission efficiency. Both developed and developing countries are increasing their adoption of AI technologies in their space programs due to these benefits. The expansion of space programs and the integration of AI are projected to fuel the growth of the global AI in military market in the coming years. 

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Market Challenges

In the military market, artificial intelligence (AI) is revolutionizing defense strategies with advanced solutions for situational awareness, proactive defense measures, and agile decision-making. However, security concerns around AI-powered systems, such as cybercrime, theft, hacking, and data destruction, necessitate responsible AI practices and ethical considerations. Defense agencies, technology companies, and research institutions collaborate to develop next-generation warfare systems, including autonomous vehicles, surveillance drones, and decision support systems. AI and machine learning (ML) are essential components of these systems, enabling threat detection, anomaly detection, and predictive analysis. The hardware segment, including AI processors and memory, plays a crucial role in the development of these advanced systems. Ethical considerations and responsible AI practices are essential to prevent potential misuse of these technologies. Geopolitical tensions and evolving threats require defense forces to invest in technological infrastructure, including quantum computing, encrypted communication, and advanced computing. Private companies like Google and Microsoft are also contributing to the industry outlook with quantum processors and AI programs. The military sector faces challenges in implementing AI systems, including cybersecurity, logistics and transportation, warfare platforms, and information processing. OpenAI and other AI programs are essential for military data analysis, while new procurement and upgrades in cybersecurity and logistics and transportation are necessary for operational efficiency and decision-making accuracy. Military laser systems, autonomous military systems, and defense forces are investing in AI-powered solutions to enhance their capabilities and stay ahead of the curve in the face of international conflicts and protocols and standards. The industry outlook is positive, with continued investment in AI systems, learning and intelligence, and applications across airborne, land, naval, space, and simulation and training.Many businesses in the military market are eager to leverage Artificial Intelligence (AI) for advanced capabilities, yet face challenges in doing so. The implementation of AI applications, such as machine learning and deep learning, necessitates significant investments in data sets, infrastructure, and processing power. Additionally, a team of specialized AI experts is required to execute tasks effectively. However, finding and hiring these experts is a competitive process, making it a significant challenge for many companies, particularly smaller ones, to fully capitalize on AI technology. Careful consideration of appropriate use cases and applications is essential before implementing AI at scale to ensure maximum return on investment.

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Segment Overview 

This artificial intelligence (ai) in military market report extensively covers market segmentation by

Component 1.1 Software1.2 Hardware1.3 ServicesType 2.1 New procurement2.2 UpgradationGeography 3.1 North America3.2 Europe3.3 APAC3.4 Middle East and Africa3.5 South America

1.1 Software-  The AI software segment is poised for significant growth in the global artificial intelligence in military market. Defense organizations are increasingly adopting AI software solutions to strengthen their IT infrastructure and enhance cybersecurity capabilities. With data privacy regulations becoming stricter, militaries are investing in AI-powered software tools to detect, prevent, and mitigate security breaches and cyber threats. Advanced technologies like machine learning, virtual assistants, and speech/voice recognition are utilized in these software systems. They collect data from connected hardware systems, process it using AI algorithms, and generate intelligent insights to support critical decision-making processes. Leading AI technology providers, such as IBM, are supplying sophisticated software platforms to defense forces to boost operational efficiency and strategic advantages. The growing investments by militaries worldwide in advanced AI software solutions are fueling the segment’s growth.

Download complimentary Sample Report to gain insights into AI’s impact on market dynamics, emerging trends, and future opportunities- including forecast (2024-2028) and historic data (2017 – 2021) 

Research Analysis

Artificial Intelligence (AI) is revolutionizing the military sector, bringing advanced capabilities to Defense Forces in Security concerns and Defense strategies. AI applications include Military Laser Systems, Autonomous Military Systems, and Cyber Security. Evolving threats from Cybercrime, Theft, Hacking, and Data destruction necessitate the integration of AI in the Military Industry. Global Military Spending on new procurement and upgrades is driving the adoption of AI in various domains such as Airborne, Land, Naval, Space, and Logistics and Transportation. Protocols and Standards are being established to ensure ethical use and interoperability. Private Companies are collaborating with Defense Forces to leverage AI in Quantum Computing and Learning and Intelligence. However, concerns around Ethics, Accountability, and Transparency persist. International Conflicts and geopolitical tensions fuel the race for advanced AI technologies. AI in Military is a complex and evolving landscape that requires continuous monitoring and adaptation.

Market Research Overview

Artificial Intelligence (AI) is revolutionizing the military sector as defense agencies seek AI-powered solutions to address evolving threats and geopolitical tensions. The military industry is investing heavily in AI technologies to enhance situational awareness, proactive defense measures, and agile decision-making. AI applications in the military sector include autonomous vehicles, surveillance drones, decision support systems, and cognitive electronic warfare. These technologies enable operational efficiency, decision-making accuracy, and next-generation warfare systems. However, the integration of AI in the military sector raises security concerns, particularly in relation to cybercrime, theft, hacking, and data destruction. Defense agencies must prioritize ethical considerations and responsible AI practices to mitigate these risks. The hardware segment, including AI processors and memory, plays a crucial role in the development and deployment of AI systems. Technology companies and research institutions are collaborating to advance AI and machine learning (ML) capabilities, including quantum computing and AI programs. Defense contractors are also investing in technological infrastructure, such as encrypted communication and protocols and standards, to ensure the security of military data. The military sector is also exploring AI applications in logistics and transportation, simulation and training, battlefield healthcare, and information processing. New procurement and upgrade initiatives are underway for AI systems, warfare platforms, and autonomous war vehicles and robots across airborne, land, naval, space, and cybersecurity domains. Despite the benefits, the integration of AI in the military sector raises ethical considerations and the need for responsible AI practices. The industry outlook is positive, with continued investment and innovation expected in the coming years.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ComponentSoftwareHardwareServicesTypeNew ProcurementUpgradationGeographyNorth AmericaEuropeAPACMiddle East And AfricaSouth America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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Sixty-One Percent of CEOs Say Their Boards Are Rushing AI Transformation

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New Research from Boston Consulting Group Reveals Disconnect at the Top on AI Strategy and ExecutionThree-Quarters of Board Members Believe They Understand AI, but 35% of CEOs Say Boards Overestimate the Human Capabilities AI Can ReplaceMore Than Half of CEOs Say AI Hype Is Distorting Boardroom Judgment

BOSTON, May 4, 2026 /PRNewswire/ — Sixty-one percent of CEOs say their boards are rushing AI transformation, exposing a divide at the top just as companies enter a critical phase of scaling AI. While both groups agree on AI’s importance, they differ on how quickly it should be implemented and how ready organizations are to deliver results.

These findings are from the first edition of Split Decisions: The BCG CEOs and Boards Survey. The research is based on a global survey of 625 leaders, including 351 CEOs and 274 board members, from companies with at least $100 million in annual revenue, spanning both private and public sectors.

Boards tend to favor faster AI implementation, according to the survey, while CEOs take a more measured approach. Gaps in AI understanding and FOMO (fear of missing out) may be contributing to this dynamic. Board members with lower confidence in their AI knowledge are more likely to believe their organizations are moving too slowly, suggesting that uncertainty is translating into increased urgency.

Boards’ AI Confidence Faces CEO Skepticism

While 75% of board members believe their AI knowledge is on par with or ahead of that of their peers, CEOs are less convinced. Nearly 40% say boards lack an informed view of how AI is reshaping growth strategy, and one-third say boards overestimate the human capabilities that AI can replace. (See the exhibit.)

“I feel this tension so acutely between CEOs and boards,” said Julie Bedard, a BCG managing director and partner. “A powerful way for CEOs to bridge the gap between their AI knowledge and their boards’—especially if they feel there is a deficit there—is for the CEO to personally lead an AI upskilling session for their board to show them the latest AI tools and what they can do. CEOs can also bridge the gap by talking about AI in a much more differentiated way to clearly illustrate where AI can be a substitute for humans and where it can complement human work.”

AI Hype and Misaligned Expectations Shape Boardroom Dynamics

More than half of CEOs say boards need to better understand the gap between AI hype and reality, while boards want CEOs to do a better job of selling them on their AI strategy.

CEOs report feeling greater pressure to deliver AI results than boards may fully recognize. Chief executives estimate that 35% of their performance evaluation depends on achieving AI ROI, compared with boards’ estimate of 27%, suggesting a mismatch between perceived expectations and formal accountability.

AI Literacy Emerges as a Shared Priority

Despite some misalignment, CEOs and boards broadly agree on the need to raise AI fluency at the highest levels of leadership. Approximately 80% of both groups say that prospective board members should be required to demonstrate a measurable understanding of how AI can reshape their industry.

“CEOs need to be very intentional about supporting their boards on the same learning journey they’ve taken,” said Judith Wallenstein, a BCG managing director and senior partner and the global head of the firm’s CEO Advisory. “But at a much faster pace, with more focus, and in a way that builds real understanding rather than just surface-level awareness of how AI can create true competitive advantage for the company.”

Download the publication here:
https://www.bcg.com/publications/2026/ai-governance-gaps-where-ceos-and-boards-disagree

Media Contact:
Eric Gregoire
+1 617 850 3783
gregoire.eric@bcg.com

About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

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SOURCE Boston Consulting Group (BCG)

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IBM Study: CEOs are Reshaping C-suite Roles for the AI Era

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76% of surveyed organizations now have a Chief AI Officer, up from 26% a year ago59% of CEO respondents say the CHRO’s influence will increase over the next few yearsNearly two-thirds of surveyed CEOs are comfortable using AI to help inform major strategic decisions

ARMONK, N.Y., May 4, 2026 /CNW/ — A new global study from the IBM (NYSE: IBM) Institute for Business Value finds that the accelerating pace of AI is pushing CEOs to redesign how C-suite roles are structured to drive greater business impact across the enterprise.

In the foreword of the study, IBM Vice Chairman Gary Cohn writes, “The CEO’s role has always been to lead through disruption. What AI changes is the velocity and consequences of leadership. Enterprises that succeed will operate AI-first – not as a layer of technology, but as a new operating model. Decision cycles will compress. Boundaries between functions will dissolve. Advantage will accrue to those who can learn, adapt, and execute faster than their competitors.”

The annual IBM CEO study,* which surveyed 2,000 CEOs globally, shows that as AI becomes more pervasive in the enterprise, CEOs are under growing pressure to rethink how leadership teams operate, how decisions get made and how organizations are structured.

Among the key findings:

76% of surveyed organizations have a Chief AI Officer (CAIO) in 2026, up from just 26% in 2025.Analysis shows that organizations with an AI-first approach to C-suite design have scaled 10% more AI initiatives enterprise-wide than their peers.64% of surveyed CEOs say they are comfortable making major strategic decisions based on AI-generated input. 83% of respondents agree that AI sovereignty is essential to business strategy, underscoring the importance of having the right controls as AI plays a larger enterprise-wide role. Surveyed CEOs say only 25% of the workforce is using AI regularly as part of their job, despite 86% believing their employees have the skills to collaborate with AI.

“AI is changing how work gets done, bringing people and software together in new ways, and it’s changing how people come together in the workplace,” said Mohamad Ali, Senior Vice President, IBM Consulting. “The CEOs delivering real results from AI transformation aren’t just deploying AI faster, they’re redesigning their organizations to bring together the best people with the best technology.”

New challenges demand different kinds of leadership

85% of respondents say all functional leaders must become technology experts in their domain, signaling that AI accountability is expanding beyond specialized roles. Among organizations with a CAIO, all surveyed CEOs expect the influence of the role to increase by 2030, alongside rising influence across every member of the C-suite. 59% of surveyed CEOs say the CHRO’s influence will increase over the next few years.

As CEOs turn to AI-driven decisions, governance and controls become more critical

By 2030, surveyed CEOs expect 48% of operational decisions where consistency and guardrails can be codified will be made by AI without human intervention, compared to 25% today. 79% of executives surveyed confirm they are decentralizing decision-making, distributing accountability as AI plays a more significant role enterprise wide. 

Organizations are betting on people to drive AI success

83% of CEOs surveyed say AI success depends more on people’s adoption than technology.Between 2026 and 2028, respondents expect 29% of employees to require reskilling for a different role and 53% to need upskilling to perform their current role more effectively. Surveyed organizations that redesigned five core business areas — technology, finance, HR, operations and cross-functional collaboration — are four times more likely to have delivered on business objectives. 77% of respondents say talent and technology leadership roles are converging, suggesting tighter integration between talent, technology and enterprise strategy. 

To view the full study, visit: https://www.ibm.com/thought-leadership/institute-business-value/en-us/c-suite-study/ceo

The study also features industry perspectives from senior executives on how business leaders are responding to AI-driven change. A selection of these firsthand views are available in the addendum below.

*Study Methodology
The IBM Institute for Business Value, in cooperation with Oxford Economics, conducted a survey of 2,000 CEOs and equivalent senior leaders across 33 geographies and 21 industries from February to April 2026. The survey explored how leaders are redesigning business models, operating structures and execution capabilities in an AI-driven economy, with additional analysis examining how organizations translate AI ambition into enterprise-wide execution and business value.

The IBM Institute for Business Value, IBM’s thought leadership think tank, combines
global research and performance data with expertise from industry thinkers and leading academics to deliver insights that make business leaders smarter. For more world-class thought leadership, visit: www.ibm.com/ibv. To receive more insights, subscribe to the IdeaWatch newsletter: https://ibm.co/ibv-ideawatch

About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s long-standing commitment to trust, transparency, responsibility, inclusivity, and service.  Visit www.ibm.com for more information.

Media Contact
Marisa Conway
IBM Corporate Communications
conwaym@us.ibm.com

Executive Perspectives:

“It’s not laying AI on top of your existing tools and services. It’s reimagining the entire process.” — Pablo T. Rivero, CEO, Resy and SVP, Global Dining, American Express

“You can’t forecast every disruption, but you can prepare by building organizations that are resilient, adaptable, and ready to operate through change.” — Andrew Anagnost, President and CEO, Autodesk

“AI has moved from the infrastructure layer, largely invisible, to the surface layer of how we work and how we serve customers.” — David Risher, CEO, Lyft

“The introduction of AI is more transformative than the introduction of the internet was at the time – not because of the technology itself, but because of its impact on how people work, decide and collaborate.” — Jan Polkerman, CEO, Dutch Tax and Customs Authority IT

“AI needs to be embedded into how we operate. That means integrating it into workflows across design, merchandising, marketing, stores, and operations–not as a separate initiative, but as part of how the business runs.” – Patrice Louvet, President and CEO, Ralph Lauren Corporation

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Eddid Financial Honored with “Professional Services Award in RWA” by HKCT Highlighting its Leading Edge in Web3 and Digital Assets

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HONG KONG, May 4, 2026 /PRNewswire/ — Eddid Financial (the “Group”) has won the “Professional Services Award in RWA” at the HKCT Business Awards, hosted by the Hong Kong Commercial Times. The award recognizes the Group’s exceptional professional service capabilities and innovative achievements in the Real-World Assets Tokenisation (“RWA”) sector. This prestigious honor serves as a strong industry endorsement of the Group’s dedicated efforts in the RWA space, affirming its leadership in bridging traditional and digital finance while injecting significant momentum into Hong Kong’s digital asset market.

The HKCT Business Awards evaluates candidates based on four core criteria: corporate achievements, market competitiveness, brand philosophy, and professional standing. As one of the most credible and influential business awards in Hong Kong, it aims to recognize outstanding enterprises across various sectors for their performance over the past year, encouraging companies to continuously enhance their core competitiveness and pioneer innovative economic directions. During this year’s selection process, the judging panel conducted a comprehensive assessment of Eddid Financial’s compliance infrastructure, innovative services, and industry contributions within the RWA sector, highly commending the Group’s professional strength and forward-looking vision in asset tokenisation.

Compliance-Driven: Building a Full-Chain Service Ecosystem

As a licensed pioneer in Hong Kong’s RWA landscape, Eddid Financial has consistently relied on compliance as its foundation and innovation as its driving force. Having deeply cultivated the digital asset space for years, the Group has established a full-chain professional service ecosystem that encompasses asset screening, product design, compliance auditing, and distribution operations. Eddid Securities and Futures, a subsidiary of the Group, became one of the first brokerages in Hong Kong to upgrade its licenses in September 2023. It subsequently secured further upgrades for its Type 1 and Type 9 regulated activity licenses, making it one of the few institutions authorized to distribute tokenised securities and RWA products. This regulatory milestone has laid a solid, compliant foundation for the Group’s RWA business operations.

Successful Launch of Landmark Precious Metal RWA Projects

In terms of practical application, Eddid Financial has actively spearheaded the launch of several landmark RWA projects, setting a new benchmark for the industry. Notably, the Group partnered with Timeless Resources Holdings Limited (8028.HK) and HashKey Chain to introduce Hong Kong’s first silver RWA project. By leveraging blockchain technology to tokenise physical silver assets, each digital coin is backed 1:1 by one ounce of physical silver, strictly held by an independent trustee. This initiative not only lowers the barrier to entry for precious metal investments but also enhances asset liquidity. The project’s product design and issuance framework received a “no further comment” reply from the Hong Kong Securities and Futures Commission (SFC), demonstrating the highest standard of compliance.

Concurrently, the Group has collaborated with CAC Fintech to advance China’s first agricultural RWA project. By converting agricultural products, land management rights, and future agricultural revenue rights into on-chain digital certificates, this project addresses critical pain points such as poor liquidity and low financing efficiency in agricultural assets. Furthermore, it supports the national rural revitalization strategy and explores novel pathways for the innovative integration of agricultural assets with financial markets.

Leading the Upgrade of the Regional RWA Industry

Beyond launching landmark projects, Eddid Financial continues to drive the ecosystem construction and market development of the RWA sector. The Group’s research department published the “Core Guide to RWA: From Basic Theory to Global Practice,” sharing its leading experience in asset tokenisation to help establish industry standards. Simultaneously, the Group has built a tripartite development model encompassing “Technology + Compliance + Ecosystem”. Internally, it has assembled a dedicated fintech team to advance underlying technologies; externally, it connects core stakeholders, including asset holders, investors, and licensed exchanges, to form a comprehensive RWA service ecosystem that provides clients with all-encompassing, one-stop professional services.

Looking ahead, Eddid Financial will continue to leverage its comprehensive licensing advantages, expert service teams, and robust technical support to drive the digital transformation of a diverse range of real-world assets. The Group is committed to delivering highly flexible, efficient, and compliant RWA services to its clients while actively supporting the standardized and international development of Hong Kong’s digital asset market, thereby cementing Hong Kong’s status as a premier global digital finance hub.

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