Background

• The contest to develop national Artificial Intelligence (AI) capabilities has sharpened significantly since the public launch in late 2022 of highly capable large-language models. 
• India launched its first national strategy for AI in June 2018 and an AI task force convened by the government delivered defence-specific recommendations. 
• In 2022, the government published a list of 75 priority projects related to using AI for defence; these focused on data processing and analysis, cyber security, simulation and autonomous systems, particularly drones. 
• India is also exploring AI applications for underwater domain awareness and border security. 
• In the near term, India is prioritising the needs of its domestic industry to help it become globally competitive in the AI sector. 
• The government hopes to harness the private sector’s large AI workforce and dual-use products both in defence and in its plans to double (from 11% to 22%) the digital economy’s contribution to GDP by 2026.  
• India has already deployed AI-based solutions for border surveillance to brace border security by incorporating cameras, radar feeds, sensors etc. The Indian army has installed about 140 AI-based surveillance systems to get live feed in the Pakistan and China borders.

Need for AI in India’s Defence Sector

• International Competitiveness: China has a globally competitive AI sector and could field new military applications of this technology using a relatively small percentage of its defence budget (perhaps as little as 1–2% in the coming years). 
  • Pakistan is also taking steps to acquire AI capabilities for national defence.
• Improved Surveillance & Threat Detection: AI-powered drones, satellites, and automated monitoring systems improve real-time surveillance, detect threats early, and strengthen border security against infiltrations and terrorist activities.
• Faster Decision-Making: AI analyzes vast data sets to provide actionable intelligence, helping commanders make quicker, data-driven decisions in critical combat situations.
• Cybersecurity & Warfare: AI defends against cyberattacks by detecting vulnerabilities, neutralizing threats in real-time, and securing sensitive military networks.
• Autonomous Weapon Systems: AI enables easy use of autonomous drones, unmanned ground vehicles, and robotic soldiers which has the ability to reduce human casualties and increase operational efficiency.
• Inter-Service Coordination & Operational Efficiency: AI facilitates easy communication and interoperability between the Army, Navy, and Air Force, improving joint military operations.
• Cost-Effective Military Modernization: AI-driven automation develops better logistics, maintenance, and resource allocation, reducing long-term defense costs while ensuring cutting-edge technological advancements.

Challenges in use of AI in Defence Sector

• Lack of Digitized Data & Infrastructure: AI systems require vast datasets for training, but India lacks sufficient digitized military data and the necessary computing infrastructure.
• High Cost of AI Implementation: Establishing AI-driven defense systems requires expensive data centers and advanced computing resources, straining the defense budget already allocated for replacing outdated military hardware.
• Fragmented AI Policies & Regulations: While India has AI strategies, they lack clear implementation guidelines for military use, delaying adoption and regulation of AI-powered defense systems.
  • For instance, the National Strategy for Artificial Intelligence outlines India’s vision for deploying AI. However it provides little insight on actual mechanisms for deployment.
• Inter-Service Silos & Lack of Coordination: The Indian Army, Navy, and Air Force have separate operational doctrines, hindering AI integration and joint military operations.
• Over Reliance on Public Sector Units (PSUs): Limited involvement of private firms slows AI-driven defense innovation, highlighting the need for stronger public-private partnerships (PPPs) to accelerate technological advancements.

Way Forward

• India has already begun harnessing AI’s potential to bolster its defence ecosystem. However, these multiple impediments serve as a reminder of the measures that need to be taken. 
• Strategic alignment is important, and robust frameworks and policies are necessary to ensure AI’s effective and ethical deployment. 
• India needs to make systemic changes to tackle issues such as the inter-service silos and an overreliance on PSUs. 
• To equip the military with the best systems at a large enough scale, there will have to be public-private partnerships (PPPs) or an introduction of private competition. As seen with the space sector, this can significantly change the state of affairs.
• Finally, collaboration and innovation internationally and in terms of PPPs will accelerate AI adoption and innovation. With a cohesive strategy, India will be able to maximise the utility of AI.