The international system is undergoing a profound global power shift characterized by the resurgence of great power competition and a broad diffusion of technical capabilities. This environment is intensifying security competition across all domains. Concurrently, the proliferation of artificial intelligence (AI) and other disruptive technologies has fundamentally transformed espionage and defense. The traditional landscape of counterintelligence (CI) is obsolete and requires rapid, systemic overhaul to address the increasingly amplified, technologically enabled threats posed by state and non-state actors.

Specifically, the shift to great power technological competition has expanded CI’s mandate from protecting military secrets to securing critical infrastructure, intellectual property (IP), and the integrity of the information domain. The dual-use nature of AI functions as both in support of automated espionage and a critical mechanism for preemptively anticipating and mitigating threats. The failure of the United States to strategically integrate AI into CI methodologies will result in the systemic erosion of national technological and economic advantage.

The Expanded Mandate of Modern Counterintelligence

CI functions to protect a nation’s secrets, personnel, and systems from foreign intelligence entities (FIEs). Yet today, CI must also confront a threat matrix dramatically enlarged in scope, sophistication, and velocity. The current geopolitical climate has necessitated a significant expansion of the traditional CI mission. In the context of great power competition, the most significant threat has shifted from the theft of classified military and diplomatic secrets to the large-scale acquisition of IP, trade secrets, and technological data, as highlighted in the recently released Annual Threat Assessment.

FIEs are aggressively targeting the private sector, academia, and research institutions, the very engines of national innovation through sophisticated economic espionage. Their strategic goal is not merely to obtain information, but to erode a nation’s competitive advantage and accelerate the adversary’s technological timetable, thereby shifting the global balance of power. CI must establish robust protective mechanisms that extend deep into the non-governmental technology and research ecosystem.

The dissolution of a clear distinction between peacetime competition and active conflict has resulted in a continuous state of confrontation known as the ‘gray zone’. This strategic domain is characterized by persistent, non-lethal, yet tactically damaging activities designed to achieve political objectives without triggering traditional military responses. CI must now defend against a spectrum of subtle subversion, including large-scale cyber operations, persistent penetration of networks for reconnaissance and preparatory measures, and covert attempts to manipulate political discourse and decision-making.

The globalization of commerce and technology has created intricate, interconnected supply chains. These networks present significant CI risks, as adversaries seek to compromise the integrity, trustworthiness, and authenticity of products and services. By inserting “backdoors” or creating exploitable “choke points” at various nodes, adversaries establish capabilities for future exploitation. CI efforts are essential to conduct comprehensive due diligence and risk mitigation, securing these complex networks against both hardware and software compromise.

Artificial Intelligence: The Dual-Use Catalyst

AI and emerging technologies are not merely targets of modern espionage; they are simultaneously the most potent tools and the most necessary defenses in the counterintelligence battleground. This dual-use dynamic creates a challenging “AI vs. AI” scenario that demands immediate, radical adaptation. Adversaries are leveraging AI to dramatically enhance the speed, scale, and sophistication of their intelligence operations:

Automated Espionage and Big Data Analysis: AI-powered tools can automate and scale the processing, translation, and analysis of vast, heterogeneous datasets (Big Data), vastly increasing the volume and velocity of intelligence collection from both open-source intelligence and classified sources.

Adaptive Cyberattacks: Machine learning (ML) algorithms enable the development of more elusive and adaptive cyber threats. This includes automated exploitation of vulnerabilities, dynamic creation of polymorphic malware, and rapid penetration of defenses, operating at speeds that effectively outpace traditional, human-centric cybersecurity responses.

Generative AI for Influence: Generative AI can create highly realistic deepfakes (synthetic videos and audio) and synthetic narratives at scale. This facilitates sophisticated disinformation and propaganda campaigns to manipulate public opinion and conduct advanced social engineering, severely compromising the ability of institutions to discern truth from falsehood.

Three interconnected factors fundamentally redefine the scope of CI responsibility: target expansion, the blurring of conflict lines, and supply chain vulnerabilities. To effectively counter these technologically enabled threats, CI must aggressively embrace and integrate these same technologies, transforming them into proactive defensive tools:

Threat Anticipation and Predictive Analysis: AI can process and analyze massive amounts of threat data, identifying subtle, non-obvious patterns, trends, and anomalies. This capability allows CI to transition from merely reacting to threats toward predictive modeling, allowing one to forecast adversary actions before they materialize and enabling preemptive defense.

Enhanced Surveillance and Anomaly Detection: ML algorithms are crucial for the detection of subtle anomalies in network traffic, user behavior, and physical security systems that a human operator would miss. AI-driven monitoring provides real-time, large-scale pattern-of-life analysis that significantly exceeds human cognitive capacity.

Counter-Disinformation and Integrity Checks: CI requires AI-driven tools to effectively identify, analyze, and flag AI-generated propaganda, deepfakes, and synthetic media. Systems designed for content provenance and authenticity verification are essential to safeguard the integrity of the information domain and maintain public trust.

Insider Threat Mitigation: Defensively, AI can monitor internal networks to flag anomalous user behaviors such as unusual data access attempts, large data transfers, or deviations in an employee’s digital pattern-of-life. As such they assist in identifying potential insider threats before significant compromise occurs.

The Strategic Imperative

The shift of global powers and the proliferation of disruptive technologies have thrust counterintelligence into an even more important aspect of national security. The stakes of this technological arms race transcend traditional security concerns, encompassing the integrity of a nation’s innovative ecosystem, its economic competitiveness, and the resilience of its democratic institutions.

CI must rapidly evolve its strategies to prioritize the defense of economic and technological assets, and it must integrate AI as a foundational defensive technology to achieve predictive, scalable threat mitigation. Failure to aggressively master and deploy AI defenses against technologically augmented adversaries risks the systemic erosion of national advantage in a world where technological leadership is increasingly synonymous with global power. The future success of great power competition hinges directly on the adaptive capacity and technological sophistication of CI’s function.

Joshua Thibert is a Senior Analyst at the National Institute for Deterrence Studies (NIDS) with over 30 years of comprehensive expertise. His background encompasses roles as a former counterintelligence special agent within the Department of Defense and as a practitioner in compliance, security, and insider risk management in the private sector. His extensive academic and practitioner experience spans strategic intelligence, multiple domains within defense and strategic studies, and critical infrastructure protection. The views of the author are his own.

Redefining Espionage: The Unseen War for Technological Dominance was originally published on Global Security Review.

Focusing on information operations is critical. Drones, for example, use artificial intelligence capabilities, as do defensive systems. However, conflict between near-peer adversaries and competitors is still unlikely as gray zone and hybrid conflict are the dominant avenues for competition. With the information environment transcending all domains of warfare, artificial intelligence capabilities become the go-to capability to ensure and maintain information advantage.

China’s AI-enhanced information operations are becoming increasingly sophisticated. For example, the Chinese advanced persistent threat actor Spamouflage Dragon uses generative AI to create online personas to influence public opinion. China and its proxy companies seek to develop or compete for AI supremacy within the information environment.

Of course, China will use anything within its arsenal to shape strategic, operational, and tactical levels of war to its advantage, expand its influence, and create an ecosystem that is dependent on its technologies. For example, Baidu, known as the “Google of China,” invested billions into AI capabilities, creating the proprietary ERNIE model, which has been trained on billions of parameters, increasing the output’s quality and complexity.

However, China is also leveraging open-source AI models to shape the information environment. With the recent release of open-source large language models such as DeepSeek and Qwen, Chinese-linked subsidiaries, High-Flyer and Alibaba Group created a way to expand their influence, revise history, and likely create a dependent ecosystem for target countries. Unlike the much more expensive ChatGPT, for which the more basic model is free, China’s investment in generative AI models is free for the public and even surpasses ChatGPT’s in some respects.

There is a debate about how China’s proxy state companies were able to create these advanced models without US-based critical components. China allegedly did not have access to the advanced critical Nvidia chips for which most AI models are dependent. China seems to have created generative models just as suitable or even better than that of ChatGPT, but allegedly at a fraction of the cost and free of charge to the public. The US limited Nvidia chip exports to China, a market predicted to top $1 trillion in revenue within a decade. Still, the accusation is that the Chinese subsidiary leased or bought the more advanced Nvidia chips from Singapore, circumventing restrictions, and used ChatGPT to train its model.

Regardless of how China secured these critical technologies, the cat is indeed out of the bag. China has shown that it has the capability to develop new and emerging AI technologies. From the capabilities already built, it now has a baseline to create even more capabilities to develop its own AI chip ecosystem. With such capabilities, China will become more active within the information environment with the help of AI capabilities, and its motives are far from benevolent.

Why is the Chinese model free? China has several motives, but it is likely in hopes that data and information across the globe are the price tag for using the model while lessening a dependency on Western technologies and becoming a global leader in AI by 2030. Whatever data is obtained by the United States is icing on the cake. The West is not the primary target audience. Both models have servers in Singapore and China, where information is likely subject to Chinese laws, and terms and conditions are meaningless.

The Chinese will use AI technologies to gain an advantage in the information environment and seek to expand influence by creating an ecosystem for which other countries are dependent on their models. The incentive is to give countries this technology to foster dependency. The idea is similar to China’s debt-trap diplomacy—the Belt and Road Initiative. While ChatGPT’s basic model is free, China seeks to develop better models at a cheaper price to serve as leverage over countries that cannot afford the higher-end US-based models.

The United States is taking the right approach to maintaining its information advantage through AI development and investment. The billions pouring into creating AI data centers will play an important role in ensuring the United States has the edge in AI.

These data centers remain critical for identifying and countering any malign information operations against the United States, its partners, and its allies. When Iran attempted to influence the 2024 presidential election using the generative model GPT, OpenAI detected and shut it down. Without this expansive investment in AI data centers that keep information within the letter of US law and oversight, these interventions would be out of reach, and information operations may be even more challenging to detect.

However, this approach is insufficient without incorporating artificial Intelligence into all aspects of military operations. The DoD uses artificial intelligence within some branches, but given the expansive nature of AI, this is not enough. AI is expected to touch nearly all aspects of military operations, especially information operations, and may not have time to wait for its major AI initiative, Project Maven, to fully develop.

Some military scholars have called something like this a revolution in military affairs, but perhaps, given the impact of war, it could be classified as such. The concept is somewhat antiquated and outdated without some context, but it remains the best way to describe what should take place within the DoD. The foundation is already in place through the conceptual framework of multidomain operations.

Artificial capabilities are widely available through graphical user interfaces in deployable, ready-to-use form, such as ChatGPT or even internal large language models. The joint force should use these capabilities to the broadest extent possible. If anything, artificial intelligence, including large language models, will make joint and combined forces more lethal and accurate as they counter Chinese efforts within the information environment.

The DoD must adopt incentives for service members to understand the capabilities of AI and incorporate them in all training environments. These incentives can include bonuses for taking AI-driven courses. The DoD can also increase awareness and accessibility of AI courses on its education platforms which now have a paucity of artificial intelligence courses.

The DoD must also improve the training environment. With proprietary or off-the-shelf software, the DoD can incorporate AI offensive and defensive platforms within all training and mission-critical tasks. Even simply assisting with identifying generative outputs, e.g., deepfakes, will counter Chinese influence within the information environment, especially during hybrid conflict. Furthermore, military doctrine should recognize the importance of AI, especially information operations, with an emphasis on psychological operations.

While AI investment is critical to countering Chinese influence within the information environment, the only way to truly embrace multidomain operations is to ensure service members have the AI technical competency necessary to maneuver within the information environment deterring Chinese aggression.

US Army Lieutenant Colonel Matthew J. Fecteau is a PhD researcher at King’s College London studying how artificial Intelligence will impact conflict. He can be reached at matthew.fecteau.alumni@armywarcollege.edu.

China’s AI-Driven Information Operations Are Here: The US Needs an AI RMA was originally published on Global Security Review.

Contacts with foreign sources were not very informative. The Chinese Ministry of Defense denied any use of drones over American or other territory, and their spokesperson added, “We get all the information we need from hacking into US government and industry sources.” They referred Americans to the Russians.

The Russian Security Council denied any involvement in flying drones over the East Coast. “Iran provides most of our drones, go talk to them,” was the only response we could get from officials. They added that President Putin has his own personal drone for use when he is hunting while riding bare chested in the Far East.

Iran’s Foreign Ministry was no more helpful on the issue saying, “Any drones we have will be used for surveillance of Israel or sent to the Russians for the Ukrainians to shoot down.”

Having exhausted foreign sources, Americans turned to domestic agencies. The Department of Homeland Security had no information about drones. “We are fully challenged to cope with unprecedented illegal border crossings, a meltdown of the Secret Service, and a FEMA fiasco in North Carolina to worry about drones,” said one agency official, on background.

The Department of Defense was not any more helpful. They denied having any information about drones, other than to say that there was no evidence of aliens being connected to drone activity in the United States. On the other hand, there was no evidence that the drones were not connected to aliens. They referred Americans to past episodes of The X Files.

The State Department reported that they had no contact with drones other than some foreign ambassadors who were posted to the United States and predictably uninformed about their activities.

The intelligence community said they did not necessarily know anything about drones, but even if they did, it would be classified and could not be shared with the media. This was an understandable reply.

A Republican member of Congress from New Jersey claimed that Iran had launched drones from a “mother ship” somewhere off the coast of the United States and that this information came from highly classified sources. This was corroborated by some boardwalk vendors of pizza in Ocean City and Wildwood, New Jersey. Their credibility was not challenged.

Some residents of New Jersey thought that tourists from Pennsylvania who visit New Jersey beaches during the summer are retaliating for exorbitant rental charges paid in previous years. Given prices, this is certainly an option worth exploring.

Others claimed that the drones were the work of environmentalists angered by shore communities’ wars against sea gulls, including the importation of hawks to chase gulls away from their natural habitats. Recent destruction of irreplicable works of art by environmentalists makes the illicit flying of drones over New Jersey easily conceivable.

Residents of New York suggested that New Jersey was seeking publicity to compensate for its comparative insignificance in national and regional affairs. “New Jersey is simply a suburb of New York and otherwise has no reason to attract news coverage,” was the explanation provided by one New Yorker.

But a New Jersey native came to her state’s defense. New Jersey residents, she said, were mentally exhausted from driving around in their infamous traffic circles until their brains boiled over; aliens or foreign enemies would be a welcome distraction.

An expert in artificial intelligence (AI) suggested that the drone swarms might be the result of an AI experiment gone awry, given the widespread use of “deepfakes” pervasive in social media and other sources. “The Jersey drone swarm could be the opening scene in the next Hollywood spectacular mixing fictitious events (alien invasions) with real events (military drone attacks) in order to smash box office records,” he noted.

Whatever the case may be is still undetermined. Needless to say, the longer it takes to find an answer, the more numerous the conspiracy theories will become. They will also grow increasingly more interesting for sure.

Professor Steve Cimbala, PhD, is a Senior Fellow at the National Institute for Deterrence Studies and Professor of Political Science at Penn State-Brandywine.

Drones on the Loose was originally published on Global Security Review.