AI’s greatest defense value may lie in intelligence, not combat

By Arjay L. Balinbin, Associate Editor

MADRID — Artificial intelligence (AI) is already being used in military drones and defense planning, but industry executives said it may be most valuable for intelligence gathering and decision-making rather than autonomous weapons.

The discussion comes amid heightened geopolitical tensions that have accelerated investments in defense technologies, cybersecurity, and AI.

Miguel M. Acosta, founder of Utmost Capital Research and former Airbus Defence and Space executive, cited AI applications already being deployed on the battlefield.

“You can see the example in Ukraine,” he said during a roundtable discussion at South Summit Madrid 2026 last month, co-organized by IE University. “The drones that they are now using are using artificial intelligence in order to identify targets. And they have autonomous capability based on artificial intelligence.”

However, he said AI’s role in defense extends beyond drones and weapons systems.

“Artificial intelligence has been used in defense — not recently, but for several years,” he said. “For example, for maintenance of military assets, in communications, and for cybersecurity.”

Nicolás Hornillos, co-founder of OBUU, a Spanish aerospace engineering company focused on advanced aerodynamics and aircraft technologies, said the technology’s greatest contribution may lie in helping military and government leaders make informed decisions.

“The best or most important part is strategic decision-making — AI in terms of data analysis.”

He added access to information remains critical for defense planning.

“For the guys that make decisions to know in advance all the information, that’s key,” he said. “And that’s where it’s been applied from the beginning.”

The focus on intelligence gathering and analysis was echoed by Carlos Pérez de Jáuregui, founding partner of Nazca Capital, a Spanish private equity firm that invests in mid-market companies, who cited investments in companies using AI to transform satellite imagery and cybersecurity data into actionable insights.

Mr. Pérez said one portfolio company is developing an Earth observation constellation that combines satellite imagery with AI.

“What they are doing is they are watching … the Earth at the same time, and that acts on the exploitation with artificial intelligence to give you insight, not only an image.”

He said the technology can provide information on infrastructure conditions and activity patterns rather than simply delivering pictures.

“They can tell you … the traffic in a specific part of the world, the situation of infrastructures in any part of the world,” he added.

Mr. Pérez also highlighted the growing role of AI in cybersecurity.

“Now all devices are connected, and you can develop models based on artificial intelligence, which can allow you to predict what’s going to happen,” he said. “So, it’s what they call cyber intelligence now.”

Beyond surveillance and cybersecurity, companies are also using AI to improve manufacturing processes in the aerospace sector.

Mr. Hornillos said OBUU is applying AI-aided techniques to improve quality and production rates in industrial fabrication processes.

“We are gathering data from different stages of the fabrication of flight surface components in order to be able to eventually predict if the component is going to have a laminar flow performance or not,” he said.

The goal, he said, is to achieve “better and faster fabrication processes.”

“This is not something that will impact now but will impact the fabrication of new aircraft … in 10-15 years’ time.”

While they expressed confidence that AI capabilities will continue to advance, they also drew a distinction between technological possibilities and political or ethical limits.

“If you speak about technology, I’m totally sure in 20 years we’re going to have fully automated systems,” Mr. Acosta said.

At the same time, he said Europe maintains limits on fully autonomous weapons.

“We are not going to develop [fully] autonomous striking systems or autonomous weapons… At least some people behind the system are going to make the decision.”