Advancing AI in defense organizations

Artificial intelligence (AI) is a strategically important technology for the defense industry worldwide. The opportunities are far-reaching, from military applications to business and noncombat-focused uses. But how prepared are defense organizations to pursue the promise of AI capabilities?

To address this question, the IBM Institute for Business Value (IBV) surveyed 250 technology leaders from defense organizations in 13 countries in 2020. Discussions with experts for additional understanding followed in 2021.

Are defense organizations ready to realize value from AI?

As outlined in the first report in this series, AI adoption is currently widespread across defense organizations globally. Leaders from all defense organizations surveyed say they’re at least considering its use. Half of the organizations have already implemented AI solutions, and another quarter have pilot projects underway.

Less than 50% of defense organizations say they are prepared to realize value from AI capabilities.

Yet, as discussed in this second report, defense leaders are only fairly confident in their readiness to implement or realize value from AI capabilities. Slightly less than half say they are somewhat prepared, and few indicated their organizations have very mature analytics and AI capabilities today.

Defense leaders expect their AI and analytics maturity levels to almost double in most areas in the next 3 years.

Obstacles to AI advancements

When asked to identify the roadblocks on their AI journeys, nearly half of defense technology leaders cite regulatory/policy constraints. Data-related issues—from governance and sharing to privacy concerns—and the availability of technology are high on the list. Notably, 41% cite a lack of skilled resources as a significant barrier.

The power of partnerships

To compensate for the skills deficit, defense organizations are advancing AI initiatives through collaboration among themselves and with private sector companies. About half of defense leaders say they are using private sector partnerships to supplement their expertise in areas such as machine learning, deep learning, predictive analytics, performance management, and natural language processing. While they expect internal AI development efforts to strengthen over the next 3 years, especially with defense-specific advanced analysis techniques, nearly half say they will continue to rely on the private sector for most areas.

Nearly 75% of defense leaders say experimentation has positively affected innovation in their organizations.

The value of innovation

More than 60% of defense leaders report that their organizations are encouraged to experiment, and those organizations actively embracing experimentation say they see benefits. But only 13% state that failure is recognized as inherent in the innovation process. The hesitancy to experiment and fail can be a significant barrier to pursuing the benefits of AI and other emerging technologies. Embracing experimentation and the failures that come with it, along with implementing modernization mechanisms and a culture of innovation, are critical for defense organizations pursuing digital transformation with cutting-edge AI technology.

Read the full report to see how global defense organizations are collaborating and innovating successfully—and to explore recommendations for advancing AI initiatives through expanded partnerships and open innovation.