In this article, we will be taking a look at the top 10 artificial intelligence (AI) applications for military use in 2024. You can skip our detailed analysis on the AI industry and directly head to the Top 5 Artificial intelligence (AI) Applications for Military Use in 2024.

Global AI Market Growth and Impact: Projections, Opportunities, and Challenges Through 2030 

The global artificial intelligence (AI) market was estimated to be worth $515.31 billion in 2023 by Fortune Business Insights. By the end of 2030, the market is predicted to have grown at a compound annual growth rate (CAGR) of 21.6% and reach $2.02 trillion.

The AI industry’s growth is fueled by the increasing adoption of AI applications, partnerships, and government investments, particularly in sectors like healthcare, retail, banking, and manufacturing. The healthcare sector, an early AI adopter, has seen significant improvements in diagnosis and treatment accuracy. A 2023 Skynova survey found that 80% of U.S. small business owners are optimistic about AI’s role in their operations. A Semrush study of 2,600 businesses revealed that 67% use AI for content marketing and SEO, with 78% reporting satisfaction. AI-driven SEO improved results for 65% of companies, and 93% of marketers review AI-generated content before publication, focusing on EEAT principles for quality.

AI is increasingly seen as a crucial technology for addressing complex challenges across industries. In healthcare, AI is used for diagnostic imaging, personalized treatment plans, and predictive analytics, which can save the U.S. economy approximately $150 billion annually by 2026. The global economy stands to benefit significantly from AI, with projections suggesting that AI could contribute roughly $15.7 trillion by 2030. However, this technological advancement also poses challenges, such as potential job displacement, with estimates indicating the loss of 85 million jobs but the creation of 97 million new ones, resulting in a net gain of 12 million jobs worldwide.

The United States is a leader in the AI market, capturing over 51.1% of the global market share. This dominance is attributed to the country’s advanced technological infrastructure and high adoption rates across various sectors. AI is projected to increase the U.S. GDP by approximately 21% by 2030. The AI software segment held the largest market share in 2022, constituting over 39.3% of the AI market, with deep learning capturing over 35.0% of the market share.

Lockheed Martin and Northrop Grumman: AI Advancements and Financial Performance in Q2 2024

Lockheed Martin Corporation (NYSE:LMT) and Northrop Grumman Corporation (NYSE:NOC) are two major American military contractors actively involved in developing artificial intelligence (AI) technologies for defense applications. Lockheed Martin Corporation (NYSE:LMT) has collaborated with IBM’s subsidiary, Red Hat, to address AI and data-sharing challenges for the U.S. Department of Defense. This partnership aims to support the military’s transition to more distributed forces and mobile equipment. Financially Lockheed Martin Corporation (NYSE:LMT) reported net sales of $18.1 billion for Q2 2024, marking a 9% increase year-over-year.

However, net earnings slightly decreased to $1.6 billion from $1.7 billion in the previous year, resulting in diluted earnings per share (EPS) of $6.85. The company’s Aeronautics division reported net sales of $7.28 billion, reflecting a 6% increase driven by the F-35 and F-16 programs. The Missiles and Fire Control segment saw a 13% rise in net sales, reaching $3.1 billion. Rotary and Mission Systems experienced a 17% increase, with net sales totaling $4.55 billion. Meanwhile, the Space segment had a modest 1% increase in net sales, amounting to $3.2 billion. The company raised its full-year guidance, projecting net sales between $70.5 billion and $71.5 billion, with EPS expected to be in the range of $26.10 to $26.60.

Similarly, Northrop Grumman Corporation (NYSE:NOC) is heavily invested in AI, focusing on autonomous systems, including aerial and ground vehicles, and intelligent sensors. The company is a key partner in the Department of Defense’s Joint All-Domain Command & Control (JADC2) strategy, which integrates AI to enhance military operations. Northrop Grumman has developed the X-47B autonomous aircraft under a DARPA contract, which has achieved milestones like autonomous takeoff and landing on aircraft carriers and mid-air refueling.

These advancements demonstrate the potential for autonomous aircraft in military operations. Financially, Northrop Grumman Corporation (NYSE:NOC) reported a revenue of $10.2 billion for Q2 2024, which is a 7% increase year-over-year, surpassing estimates of $10.017 billion. The company’s GAAP EPS was $6.36 in Q2, reflecting a 19% increase from the previous year’s $5.34. Net earnings were $940 million, up 16% from $812 million in Q2 2023. All four segments of the Northrop Grumman Corporation (NYSE:NOC) reported higher sales in Q2: Aeronautics Systems generated $2,963 million, reflecting a 14% increase. Defense Systems reported $1,513 million, up 7%. Mission Systems saw a 5% rise in sales to $2,773 million, while Space Systems experienced a 2% increase, reaching $3,573 million. The company invested $1.8 billion in capital expenditures and approximately $3 billion in R&D. It also increased dividends by 10%.

While we acknowledge the potential of NOC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO: 17 Latest AI News and Analyst Ratings You Should Not Miss and 33 Most Important AI Companies You Should Pay Attention To.

Our Methodology 

Here is the list of the top 10 artificial intelligence (AI) applications for military use in 2024 according to our research.

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10. Predictive Maintenance 

Predictive maintenance is a critical application of artificial intelligence (AI) in military operations which is aimed at enhancing the reliability and efficiency of military equipment and systems. Predictive maintenance uses AI algorithms to analyze data from various sensors installed on military equipment. This analysis helps in predicting when a component might fail, allowing for proactive maintenance scheduling. A Deloitte report mentions that predictive maintenance can increase productivity by 25%, reduce breakdowns by 70%, and lower maintenance costs by 25%. The Government Accountability Office (GAO) has noted that the US Department of Defense (DoD) spends about $90 billion annually on maintenance and is working on implementing predictive maintenance to improve readiness and reduce costs.

9. Transportation and Casualty Care 

Transportation and casualty care are among the top applications of artificial intelligence (AI) in the military for 2024. AI significantly enhances military transportation by optimizing logistics, reducing costs, and managing the efficient movement of resources and troops. It also aids in the development of autonomous vehicles for future military use. In casualty care, AI supports medics by analyzing medical data and providing treatment recommendations, though human oversight remains crucial due to AI’s limitations in handling life-and-death decisions.

In the field of combat casualty care, innovative AI solutions are making a significant impact. The Automated Ruggedized Combat Casualty Care (ARC3) system, developed by Charles River Analytics, assists medics by diagnosing injuries, monitoring patients, and offering treatment guidance when immediate evacuation isn’t feasible. This system empowers medics to make informed decisions under challenging conditions. Similarly, the Ensemble Prediction for Combat Casualty Care (EPIC3) mobile app, also from Charles River Analytics, employs machine learning to predict life-threatening injuries and provides step-by-step treatment instructions through a user-friendly interface. Tailored to the user’s skill level, EPIC3 enhances medics’ decision-making capabilities in critical situations.

8. Military Logistics 

Military logistics involves managing supply chains, transportation, and maintenance to keep forces equipped and ready. AI applications in military logistics include predictive maintenance, where systems like the Autonomic Logistics Information System (ALIS) for F-35 jets forecast and prevent equipment failures, thereby cutting downtime and costs. AI also optimizes supply chain management with real-time data analytics and predictive insights, enhancing resource allocation and logistics efficiency by over 20%.

AI-powered cloud services, such as those used by the U.S. Army in partnership with IBM, streamline data processing and decision-making. Additionally, AI-driven driverless vehicles are being explored for autonomous resupply missions, improving safety and ensuring timely delivery of supplies in challenging conditions. The U.S. Department of Defense’s Joint Artificial Intelligence Center (JAIC) leads AI integration in military logistics, focusing on scalable applications to boost efficiency and effectiveness. Concurrently, the Army Materiel Command, led by Gen. Ed Daly, is incorporating AI into logistics to enhance timeliness and efficiency, aiming to provide support that aligns with the “speed of relevance” for mission success.

7. Smart Weapons 

Smart weapons use AI to improve precision, decision-making, and efficiency in military operations, reducing human intervention and enhancing overall effectiveness in modern warfare. One of the most notable implementations of AI in smart weapons is the U.S. Department of Defense’s Project Maven. It processes video data to enhance target recognition and battlefield awareness. In 2020, it successfully identified and targeted a decommissioned tank at Fort Liberty, coordinating with the HIMARS system for a precise strike, showcasing AI’s effectiveness in real-time combat.

6. Decision Making (Strategic, and Tactical Battle Management) 

Artificial intelligence (AI) is increasingly being integrated into military operations, significantly enhancing decision-making processes at strategic, operational, and tactical levels.  At the strategic level, AI helps analyze complex data sets to identify patterns and trends, aiding in rapid response to threats and long-term planning. It can simulate scenarios and predict outcomes, improving strategic decision-making through exercises like war gaming.

Operationally, AI optimizes logistics, manages supply chains, and coordinates troop movements by processing real-time data from sources such as satellite imagery. It also enhances cybersecurity by detecting and responding to threats, and protecting military communications and information systems. For instance, Mckinsey highlights that AI-powered logistics solutions can reduce operational costs by up to 15% and improve delivery efficiency by 25%. Here’s a revised version with a more structured approach:

Tactically, AI plays a crucial role by providing real-time data analysis and threat assessment, which supports decision-making in scenarios such as drone operations and autonomous vehicle navigation. AI enhances situational awareness through the integration of data from multiple sensors, offering a comprehensive view of the battlefield.

In a related development, Tesla plans to invest $1 billion in its Dojo supercomputer by the end of 2024. This investment is part of Tesla’s broader strategy to advance autonomous driving capabilities. Overall, Tesla’s commitment to AI and autonomous driving is substantial, with plans to surpass $10 billion in cumulative investment by the end of 2024.

5. Threat Assessment  

AI systems in threat assessment integrate vast amounts of data from multiple sources, such as satellites, sensors, and intelligence reports, to provide real-time situational awareness and predictive insights. AI-based threat assessment systems enhance military operations by integrating data from satellites, sensors, and other intelligence sources to provide comprehensive situational awareness. These systems detect anomalies and potential threats in real time, enabling rapid responses and improved operational readiness.

Autonomous surveillance systems, including AI-driven drones and unmanned aerial vehicles (UAVs), gather real-time intelligence on potential threats and enemy movements. The market for AI in defense and security is expanding rapidly, with an estimated valuation of $10.6 billion in 2023 and projected to reach $39.1 billion by 2023, growing at a CAGR of 9.5%. Additionally, AI is crucial for cybersecurity, as it monitors networks for unusual activities and potential cyber threats, allowing for preemptive measures to safeguard sensitive information and infrastructure. The global cybersecurity market, which heavily relies on AI technologies, was valued at $190.4 billion in 2023 and is forecasted to grow to $298.5 billion by 2028, representing a CAGR of 9.4%.

4. Intelligence, Surveillance, and Recon 

Intelligence, Surveillance, and Reconnaissance (ISR) is one of the top applications of artificial intelligence (AI) in military. AI-powered ISR (Intelligence, Surveillance, and Reconnaissance) systems utilize advanced technologies like computer vision, machine learning, and autonomous platforms to analyze extensive imagery and video data. These systems enhance target identification, tracking, and object recognition. For example, AI can process data from various sources, including social media, to improve situational awareness.

A notable real-world application is seen in the Ukrainian war, where AI tools assist in translating and analyzing intercepted communications. This use of AI speeds up intelligence analysis, allowing military personnel to focus on the most critical information.

Financially, there is substantial investment in AI for military applications. The U.S. Department of Defense (DOD) is significantly funding AI research and development to maintain technological superiority. The Department of Defense’s fiscal 2024 budget request includes $1.8 billion for AI and machine learning to boost decision-making and enhance unmanned systems. Similarly, China is investing heavily in AI to modernize its military capabilities by 2035.

3. Combat Simulation 

Combat simulation is one of the most significant applications of artificial intelligence (AI) in military operations which offers transformative potential in training and operational preparedness.  Combat simulations play a crucial role in military strategic planning and training. They allow US military analysts to explore potential outcomes of conflicts with nations like Iran, Russia, and China, providing insights into strategic implications and logistical challenges without real-world risks. These simulations offer a virtual battleground for testing various strategies and understanding the consequences of different scenarios.

The U.S. Army employs AI-driven simulation software to create virtual combat environments that closely mimic real-life scenarios, tailoring training exercises to individual needs. Companies like Sentient Digital, Inc. are developing advanced AI military training software that uses reinforcement learning to improve combat readiness. Additionally, generative AI has advanced military simulations by producing realistic imagery and adaptive scenarios, enhancing both realism and challenge in training programs. The global market for AI in military applications is experiencing significant growth. According to Market.us, the AI military market is projected to grow at a compound annual growth rate (CAGR) of 12.4%, reaching a value of USD 24.7 billion by 2032, up from USD 7.9 billion in 2022.

2. Cybersecurity 

AI in cybersecurity is implemented through various techniques, including anomaly detection, predictive analytics, and automated response systems. The U.S. Department of Defense (DoD) has integrated AI into its cybersecurity operations to enhance protection for critical infrastructure and sensitive data. AI tools are employed to continuously monitor networks, detect anomalies, and respond to cyber incidents in real-time, helping to defend against espionage and cyberterrorism.

Secondly, DARPA’s Cyber Grand Challenge aims to develop autonomous systems that can detect and patch software vulnerabilities without human intervention. This initiative showcases AI’s potential to automate cybersecurity tasks traditionally handled by humans. Lastly, Project Maven which is also known for its drone surveillance applications, also uses AI for cybersecurity. It leverages machine learning algorithms to analyze large datasets and identify potential security threats and vulnerabilities.

1. Autonomous Vehicles (Drones, Ground Vehicles, and Vessels) 

Autonomous vehicles, including drones, ground vehicles, and vessels, represent one of the top applications of artificial intelligence (AI) for military use in 2024.  In the modern battlefield, autonomous vehicles are revolutionizing military operations. Drones that are also known as unmanned aerial vehicles (UAVs), are at the forefront, enhancing intelligence, surveillance, and reconnaissance (ISR) missions. These drones can form swarms that work together like insect colonies, efficiently sharing information and coordinating actions for tasks like target identification and battlefield assessment.

On the ground, autonomous ground vehicles (AGVs) are making their mark. These AI-powered machines tackle dangerous terrains and perform logistical support and reconnaissance roles with minimal human oversight, easing the burden on soldiers. In the maritime domain, autonomous vessels—both surface and underwater—play crucial roles in surveillance, mine detection, and anti-submarine warfare. They operate in hostile environments, providing vital data and maintaining a strategic presence. AI enhances their decision-making and data-processing abilities, crucial for maritime security.

The U.S. military is heavily investing in these technologies. Drone swarms are being developed for coordinated ISR missions, while autonomous ground vehicles are improving logistics and reconnaissance. Similarly, autonomous vessels are enhancing maritime operations. The market for these unmanned vehicles is booming, expected to hit $100 billion by 2025, with drones making up the largest share.

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Disclosure. None: The Top 10 Artificial Intelligence (AI) Applications for Military Use in 2024 is originally published on Insider Monkey.