Mapping the military AI industry | SIPRI
AI Analysis
The military AI industry is rapidly evolving, with both traditional defense primes and newer companies entering the market. These companies are developing AI-enabled products for military applications, including autonomous drones and anti-swarm technologies. The industry is characterized by diverse actors and new commercial relationships.
Key Takeaways
- Defense primes are acquiring AI start-ups to integrate AI into military systems.
- Neoprimes and defense start-ups focus on software and niche technologies like autonomous drones.
- Foundation model providers are entering military markets, reversing previous stances against military use.
- Key players include Palantir, Anduril, Skydio, and Epirus.
- Industry involvement is crucial for responsible AI use in military applications.
Why It Matters
The integration of AI into military systems enhances operational capabilities and decision-making processes, making it a strategic priority for defense sectors. Understanding the industry landscape is essential for policymakers to ensure responsible AI use and to leverage technological advancements for national security purposes.
Mapping the military AI industry | SIPRI
Mapping the military AI industry
Photo: Shutterstock
23 April 2026
Dr Alexander Blanchard, Dr Vincent Boulanin and Laura Bruun
The involvement of industry is a key aspiration of arms control initiatives on the responsible application of artificial intelligence (AI) in the military domain. But little attention is given to who should represent ‘industry’ in these processes—which companies or segments of the private-sector AI supply chain are relevant for the policy context.
This backgrounder aims to provide an overview of the military AI industry to help policymakers, as well as civil society and academic researchers, to understand the wide variety of products, actors and relationships involved.
The logic of involving industry
As United Nations Secretary-General António Guterres noted in a recent report, many states consider it important to involve a range of stakeholders—including industry, the scientific community and civil society—in policy initiatives on responsible military applications of AI. That extends beyond efforts under the auspices of the UN and includes processes like the Summit on Responsible AI in the Military Domain(REAIM).
States have given two main reasons for engaging with industry in these discussions. The first is that industry actors have highly relevant technical expertise and experience. They can help policymakers to better understand the technology. They can also contribute to generating and refining ideas about harnessing the benefits of AI in the military domain, and to identifying and mitigating the risks associated with these technologies.
The second reason is that design choices made during the development of an AI system can impact the ability of armed forces to use it in line with relevant legal and ethical frameworks. As AI systems are largely developed and produced by the private sector, states see a need to engage with industry to understand how to put principles of responsible use into practice, as well as to communicate to industry the implications of their technologies for international peace and security.
The ‘AI stack’: unpacking the industry segments
While the reasons for involving industry are relatively clear, far less so is what—or whom—this means in practice. There is no representative body for the AI industry, and even the concept of an AI industry is less straightforward than it sounds.
AI is not a discrete technology but an umbrella term that covers a wide range of techniques and technologies provided by different firms in different ways. As a result, what counts as a ‘military AI company’ is open to debate. For instance, Palantir is considered a key player in the current military AI wave, even though it does not focus on building AI models. Rather, Palantir provides data analytics platforms that incorporate AI models from other firms. There are also firms that specialize in providing services that support the adoption of AI, such as data