"First, defense contractors selling AI products or services may revert to an earlier tendency to re-package AI technologies under more palatable monikers, like "data analytics." Second, national defense organizations in the United States and elsewhere may take up the mantle of basic AI research & development suitable for their own ends, capturing the value left in the bubble's wake."
"The most impactful breakthroughs in AI research & development over the past fifteen-odd years were made by private actors operating within the commercial domain. These breakthroughs have allowed AI to be applied to a wider range of applications. While most of these applications are commercial - meant to increase the productivity of a company's workforce and, with it, its marginal gains - defense organizations have accelerated existing efforts to identify use-cases for AI models and apply them in compliance with existing or new organizational standards."
An AI financial bubble could reorient defense-sector engagement with AI. Defense contractors may repackage AI offerings under names like "data analytics" to maintain market access. National defense organizations may assume greater responsibility for basic AI research and development to secure capabilities and capture residual value. Reduced private capital would force contractors to focus product development on mitigating specific shortcomings in commercial AI for defense uses. The dual-use nature of AI means commercial breakthroughs have driven recent advances while defense entities accelerate efforts to identify use-cases and apply models under organizational standards. Many investors surveyed by Bank of America in October believe AI stocks are currently in a bubble.
Read at Nextgov.com
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