U.S. Marine Corps drone operators monitoring multiple screens at a control station for ISR and targeting operations
US Marine Corps personnel operate an unmanned aerial system control station during training. Photo: Sgt. DeMontae Stovall/DVIDS

The use of artificial intelligence in military operations is expanding faster than the rules meant to govern it, driven in part by the growing role of commercial tech providers embedded in defense systems.

A report by the International Institute for Strategic Studies highlights the expanding footprint of private-sector firms in military AI, warning that regulatory oversight has failed to keep pace.

Focusing on the Middle East, the report finds that AI-enabled systems are already in operational use, led by the US and Israel. Countries including Iran, Turkey, and the UAE are also building capabilities through domestic programs and external investment.

Private companies now play a growing role in supplying underlying infrastructure, including cloud services, data storage, and analytics tools that support intelligence, surveillance, reconnaissance, targeting, and battlefield decision-making.

However, the report notes that governance remains inconsistent, with firms sometimes able to adapt to or circumvent restrictions through policy changes and national-security exemptions.

It cites systems such as “Lavender” and “The Gospel,” which rely on commercial infrastructure to support targeting. It warns that weak oversight could undermine international humanitarian law, particularly in operations affecting civilians and infrastructure.

It also notes that companies could face increasing civil and criminal liability as their technologies become further integrated into military applications.

Commercial AI Guardrails Clash With Military Use

Tensions between governments and AI providers have also emerged.

In the US, reported disagreements between the government and Anthropic center on the company’s restrictions against mass surveillance and autonomous weapons use.

The dispute has prompted UK efforts to attract the AI firm, as Britain positions itself as offering a regulatory environment focused on AI safety and controlled deployment.

Public sentiment reflects similar concerns. A YouGov poll conducted for The Economist found that 44 percent of Americans believe AI companies should be able to limit how their technologies are used by the military.

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