Mapping Defense Investment in AI – CSET

Earlier this summer, I was asked to review an additional publication recently released by Georgetown’s Center for Security and Emerging Technology (CSET). The paper follows up on their previous in-depth look at global investment activity in AI technologies.

This analysis specifically investigated the role of mergers and acquisitions (M&A) in the AI space by the top global defense companies between 2013-2020. The idea is that the M&A pathway may provide efficient, direct access to AI innovation occuring within industry as a complement to AI capabilities found through other means. Thus, the folks at CSET set out to identify where investment in AI by defense organizations is taking place and who’s involved.

The paper is primarily for policymakers, shining a light on global defense companies’s AI mergers and acquisitions. Some of the key findings from their study are:

• Research and development is rather expensive and difficult to keep-up the pace with industry players
• Partnering with other organizations may lead to integrating AI capabilities but over long time scales
• Mergers and acquisitions are an efficient manner to build up AI expertise and products
• Defense organizations that have venture capital wings are more likely to invest in AI
• However, most of the top fifty defense companies are not relying on the M&A route for AI technology
• It’s possible that defense organizations are not convinced that AI tech is mature enough to risk full integration into their capabilities

This publication represents one follow-up study from CSET’s prior large data analysis effort. I surely hope for some more!