Artificial Intelligence (AI) is no longer a distant ambition; it is fast becoming crucial to the future of defence. As warfare evolves towards precision, speed, and automation, AI is emerging as a critical enabler of next-generation military capabilities. AI’s real power lies in transforming decision-making, situational awareness, and system autonomy. In combat scenarios, AI systems can rapidly process sensor data, evaluate threats, and deliver real-time recommendations, enabling decisions at speeds far beyond human capability.

    AI’s role in defence is rapidly expanding across operational, tactical, and strategic levels. One key area is battlefield awareness, where AI enables real-time analysis of data from drones, satellites, and ground sensors. This facilitates timely, intelligence-led insights, equipping commanders with enhanced situational clarity and decision-making superiority in a dynamic operational environment.

    AI is also playing a significant role in cyber defence and electronic warfare, where it helps detect anomalies, counter intrusions, and adapt communication protocols in real-time. In parallel, training and simulation platforms are becoming more intelligent, leveraging AI to combat scenarios based on user behaviour, enhancing readiness for unpredictable battlefield conditions.

    India has begun to deploy AI strategically across several defence domains. Over 75 AI projects have been initiated by the Indian Armed Forces and defence organisations.1 Some of the projects that have been successfully implemented are:

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    An AI-based Intrusion Detection System (AI-IDS), deployed under the Comprehensive Integrated Border Management System (CIBMS), was developed and is being implemented by Indian internal security forces. The system was developed in collaboration with Defence Public Sector Undertakings (DPSUs) and private sector players. The system uses AI-powered video analytics to autonomously detect human movement along sensitive border stretches, significantly enhancing 24/7 surveillance with minimal human intervention.2

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    AI is being integrated into command, control, communication, computer, intelligence, surveillance, and reconnaissance (C2ISR) operations. For example, AI-driven surveillance has been deployed for border security, with approximately 140 smart surveillance systems at India’s border.3

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    The Maritime Information Management and Analysis Centre (IMAC), powered by the Information Fusion Centre, which is developed and maintained by India’s naval armed forces, is leveraging AI for maritime domain awareness by integrating satellite data, ship movement patterns, and open-source intelligence.4


    Beyond operations, AI is being applied to predictive maintenance. Indian Armed Forces are partnering with India’s premier research and development organisation’s laboratories on robotics and AI to develop AI systems that assess aircraft component health based on historical flight data, reducing unplanned downtime and improving mission availability. Further, India’s defence ministry has institutionalised AI through the Defence AI Council (DAIC) and Defence AI Project Agency (DAIPA).5 The Government of India department responsible for overseeing defence production has earmarked INR100 crores annually for military AI projects.6 The defence industrial landscape is also moving towards AI adoption, with each DPSU being assigned an AI roadmap. Within this roadmap, 70 projects have been identified and of which the majority have been completed.7 As of April 2025, 632 start-ups, MSMEs, and innovators have been engaged by India’s defence services and organisation, resulting in 452 contracts.8 Young scientists are being engaged by courses released by premier Indian defence technology and R&D institutions on Artificial Intelligence and Machine Learning (AI and ML).  

    These examples reflect a broader shift from experimentation to deployment. However, the full adoption of AI in defence lies ahead. Scaled AI adoption would require agile collaboration among armed forces, research organisations, and industry, anchored by mission-driven design, trusted data ecosystems, and continuous innovation. Leadership in AI-enabled defence would not be determined by intent, but by speed, scale, and strategic clarity. The battlespace of the future would be dominated not by size or scale, but by intelligence, agility, and real-time decision superiority. For the defence ecosystem, the mandate is clear: move from isolated pilots to integrated, mission-ready systems.


    [1] Raksha Mantri launches 75 Artificial Intelligence products/technologies during first-ever ‘AI in Defence’ symposium & exhibition in New Delhi; Terms AI as a revolutionary step in the development of humanity, Press Information Bureau, July 2022 (accessed on 18 June 2025)

    [2] Union Home Minister launches Smart Fencing on Indo-Bangladesh border, an effective deterrence against illegal infiltration, Press Information Bureau, March 2019 (accessed on 18 June 2025)

    [3] The Army deploys 140 AI-based surveillance systems to enhance border security, IndiaAI (A MEITY Initiative), August 2022 (accessed on 18 June 2025)

    [4] Indian Navy’s Information Fusion Centre – Indian Ocean Region (IFC-IOR)
    [5] Enhancement of Capabilities of AI Technology, Press Information Bureau, August 2022 (accessed on 18 June 2025)
    [6] ibid
    [7] ibid
    [8] Department of Defence Production dashboard (accessed on 18 June 2025)

     

     

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    Author

    Nilachal Mishra

    Partner and Head of Government & Public Services (G&PS)

    KPMG in India

    Cdr Gautam Nanda

    Associate Partner and Lead – Aerospace & Defence, Government and Public Services

    KPMG in India


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