The term ‘diplomacy’ originates from the ancient Greek word diplōma, meaning “an object folded in two,” referring to a document granting travel or special privileges to diplomats. Statecraft is defined as the art of governing state affairs, encompassing diplomacy, economic statecraft, military strategy, and intelligence. Economic statecraft is defined as “the use of economic means to pursue foreign policy goals,” including foreign aid, trade, sanctions, tariffs, and investment to achieve foreign policy goals. While diplomacy relies on negotiation and alliances to further foreign policy, economic statecraft, on the other hand, relies on economic power to achieve foreign policy objectives.

In early human history, relations between groups were often conflictual, with armed confrontation serving as the primary means for achieving strategic advantage. Yet, even in antiquity, diplomacy emerged as a vital tool for negotiation and conflict resolution. The rivalry between the United States and China, unlike ancient rivalries, did not evolve solely due to military power; rather, it is a hybrid of trade, investment, alliances, and military strength.

China has rooted its diplomacy in trade and economics, stretching its relationships from Asia to Africa and reviving the old Silk Road that was once a symbol of China’s economic dominance. By using economic diplomacy as its foreign policy tool, China can open new markets and build alliances. Elsewhere in the Western Hemisphere, China is becoming the most important trade partner, with the likes of Argentina, Brazil, and Colombia now shifting towards China despite being traditional allies of the United States.

The United States’ current diplomacy is evolving in the use of economic statecraft as well, through sanctions, tariffs, and foreign investment based on coercion and compliance. If that can be successful in achieving the U.S. foreign policy objective and the interest of the U.S. national security, it is apparent that the strategy is limited, as it does not have global reach. While states may comply with the U.S. policy based on fear of retaliation, success from this method can be limited; as in international relations, states can balance or bandwagon. By analyzing the global politics of small states in the south, the U.S. economic statecraft and boat diplomacy may push them towards balancing towards China.

Robert J. Art and Robert Jervis, in International Politics: Enduring Concepts and Contemporary Issues, argue that “force can be used to take or to bargain. If you can take what you want, you do not need your adversary’s cooperation and do not have to bargain with him. A country may use force to seize disputed territory just as a robber may kill you to get your wallet. Most of the things people and nations want, however, cannot be taken in this way. A nation may want others to stop menacing it; it may even want others to adopt its values. Brute force alone cannot achieve these goals.”

Coercion has been a tool of U.S. economic statecraft in foreign policy for a long time. However, history shows that it has clear limitations, especially in great power rivalry. In the U.S.-Japan rivalry leading to World War II, Japan achieved early military successes, but its overextension and limited industrial base prevented long-term strategic victory. Rather than deterring Japan, U.S. sanctions intensified its aggression, illustrating again that economic pressure can provoke escalation rather than prevent it. Coercive tools such as economic sanctions and tariffs, while a game-changer, cannot alone secure a strategic victory.

For deterrent purposes, economic sanctions historically have not prevented rogue states from changing their behavior. It did not prevent North Korea from developing long-range ballistic missiles, just as it was not successful in changing Iran’s human rights behavior and nuclear ambitions. Rather than punitive deterrence, what ultimately works in Iran is deterrence by denial, as initial punitive measures did not suffice highlighting the limitations of economic statecraft in power competition. Punitive deterrence will not prevent a new power from rising, as described by Alison in Thucydides’ Trap, nor will it prevent weaker states from balancing against strong ones. It did not prevent the rise of China, and it will not prevent the rise of other future powers. What has and will make deterrence effective is the innovation of the U.S. nuclear triad, extended deterrence, and international cooperation through diplomacy.

Contemporary politics reflects the same pattern. Russia’s military power has not secured a decisive victory in Ukraine, and economic sanctions, either targeted or sectoral, have not changed Russia’s posture. As noted by the Council on Foreign Relations, “The United States began its 2022 barrage of sanctions by freezing $5 billion of the Russian central bank’s U.S. assets, an unprecedented move to prevent Moscow from using its foreign reserves to prop up the Russian ruble.” While sanctions in other sectors, such defense and energy, have been seriously targeted, the war is still ongoing. In the same vein, the U.S.–China competition and tariffs imposed on Beijing have failed to change China’s behavior as described by Global Trade Magazine, “China’s annual trade surplus passed $1 trillion, a record high, with a GDP growth remained steady at around 5%.”

It is paramount that the United States develop a hybrid strategy, combining diplomacy and other tools of statecraft to keep its leadership on the global stage, as opposed to relying on power.

While coercion and deterrence are important in great power rivalries, the current global landscape does not favor such a posture. There is a need to consider economic diplomacy as the main tool of U.S. foreign policy and economic statecraft as a second, as a future war will not be determined by military strength but by the mixture of both economic and military might.

Hafiz Ibrahim is a Ph.D. student at Virginia Tech’s School of Public and International Affairs, specializing in political economy, global security, and African-U.S. affairs. His professional experience includes serving as a Defense Trade Analyst government contractor at the U.S. Department of State, as well as working previously at Deloitte Consulting as a Sanctions Analyst. Views expressed in this article are the author’s own. 

Diplomacy in Great Power Competition and the Limits of Economic Statecraft was originally published on Global Security Review.

The war was not won by overwhelming force—it was won by precision, persistence, and a new kind of visibility. This shift was not just tactical; it was existential. Drones lowered the cost of engagement and shattered the old logic of deterrence. Military planners who once relied on large arsenals and conventional firepower now face a battlefield defined by bandwidth, optics, and algorithms. Nagorno-Karabakh was not an anomaly; it was a preview of what is coming.

Drones Tilt the Balance of Power

Azerbaijan’s drone fleet, led by Turkish-made Bayraktar TB2s and Israeli loitering munitions, did more than support ground troops. These drones destroyed tanks, artillery, and air defense systems with surgical precision.

Drone footage flooded social media and state television, galvanizing public support and intimidating adversaries. The battlefield became a stage and drones the lead actors in a performance of technological supremacy.

This was not a remote skirmish; it was a full-spectrum demonstration of how drones can tilt the military balance. Azerbaijan used converted Soviet-era aircraft as bait to expose Armenian air defenses, then struck with precision-guided drones. Air dominance was no longer reserved for wealthy superpowers; it was achieved through strategy and innovation.

Deterrence No Longer Works the Way It Used To

Deterrence did not fail for lack of firepower; it failed because the rules changed faster than anyone could adapt. Armenia’s conventional forces, built on Cold War assumptions, could not withstand the precision and persistence of drone strikes. The belief that large-scale military assets could prevent escalation collapsed under the weight of smaller and smarter systems.

This was not just a tactical failure; it was a conceptual one. Drones lowered the threshold for engagement and allowed Azerbaijan to strike decisively without risking pilots or exposing vulnerable assets. Deterrence, once rooted in overwhelming retaliation, now faces a new reality: speed, precision, and deniability.

Hybrid Warfare Is the New Normal

The war was not fought only in the skies; it unfolded across screens, networks, and supply chains. Azerbaijan blended conventional ground operations with cyber tactics, information warfare, and economic pressure. This hybrid model reflects a broader shift in twenty-first century warfare, where victory depends as much on narrative as on firepower.

Azerbaijan’s goals were clear: reclaim a contested enclave and secure vital energy corridors. But its drone-led offensive carried a deeper message—technological capability is political will. The signal to adversaries was unmistakable: resistance will be met with precision, persistence, and total visibility.

Small States Can Now Challenge Big Powers

            For Armenia, Nagorno-Karabakh represents cultural survival and historical identity. Its defense relied on asymmetrical tactics and guerrilla resilience. But against a technologically superior adversary, these methods faltered. Civilians and soldiers alike were left exposed, sheltering under skies that no longer offered cover.

This vulnerability is not unique to Armenia. Small states with access to drones can now challenge larger powers. Taiwan, for instance, is rapidly scaling up domestic drone production to counter China and support Western allies. Its “Drone National Team” initiative aims to produce 15,000 drones per month by 2028, positioning the island as a global hub for secure, AI-enabled drones.

Deterrence Must Be Reimagined

Nagorno-Karabakh may be the first war won by drones, but it will not be the last. The conflict offers a sobering lesson; deterrence must evolve or risk obsolescence. Integrated deterrence—blending military, economic, cyber, and diplomatic tools—is no longer optional. Unlike nuclear weapons, drones are accessible, scalable, and deniable. Their proliferation is horizontal, not vertical, spreading across small states, insurgent groups, and private firms.

As drone technology spreads, so does the risk of escalation, miscalculation, and asymmetric retaliation. The battlefield is no longer bound by geography; it is shaped by bandwidth, optics, and algorithmic intent.

Conclusion

            Nagorno-Karabakh was not just a battlefield; it was a turning point. It exposed how technological agility can dismantle legacy doctrines and how drones, once tactical novelties, now shape strategic outcomes. In this new era, deterrence is not about mass or might; it is about adaptability, integration, and speed. For nations still clinging to Cold War paradigms, the message is clear: evolve or be outmaneuvered. The future belongs to those who understand not just how to fight, but how to think in bandwidths, algorithms, and stories that shape the battlefield before the first shot is fired.

Evolution demands more than procurement; it requires imagination. Nations must rethink not only how they defend, but what they defend and why. As drones blur the line between war and surveillance, between deterrence and provocation, the strategist of tomorrow must be fluent in both geopolitics and code. The age of unmanned warfare is here and it is rewriting the rules faster than most doctrines can keep up.

Vikramaditya Shrivastava is a master’s student in international relations, security, and strategy at OP Jindal Global University.

Drones and the Death of Deterrence: Lessons from Nagorno-Karabakh was originally published on Global Security Review.

Meanwhile, the US Department of Defense (DoD) appears to be doing the opposite. The Chief Digital and Artificial Intelligence Office (CDAO) recently axed its Chief Technology Officer (CTO) directorate, a move many analysts view as strategic self-sabotage.

This directorate, responsible for overseeing more than $340 million in AI and digital integrations in fiscal year 2024, represented a critical nexus linking battlefield innovations with institutional infrastructure. Its elimination, justified under “efficiency” mandates, alarmed defense observers who fear it fractures continuity, erases institutional memory, and sends a dangerous signal to adversaries willing to exploit perceived American weakness.

The Strategic Misstep

The CDAO was formed in 2022 by fusing key functions from the Joint Artificial Intelligence Center, Defense Digital Service, Chief Data Office, and Advana analytics, aiming to unify policy, technology, and digital services. Embedded within CDAO, the CTO led cross-functional teams in AI, cyber, logistics, and command-and-control systems, ensuring that new technologies remained interoperable and aligned with warfighter requirements.

Abruptly dismantling this directorate not only removes a pivotal vision and coordination role but also creates a void with no clear replacement. The result is fragmented efforts, lost synergy across mission areas, and a battlefield advantage handed to adversaries.

Expertise Lost, Momentum Undermined

Leadership and expertise take years, even decades, to develop. Figures like Bill Streilein, former CTO of CDAO and veteran of MIT Lincoln Laboratory, carried institutional memory and high standards into Pentagon AI programs. But when top-tier professionals are sidelined under the label of “streamlining,” they often leave and seldom return.

This pattern has already occurred. The Defense Digital Service (DDS), once lauded as the Pentagon’s “SWAT team of nerds,” lost almost all of its members by May 2025, prompting its demise. Nearly every DDS member, citing bureaucratic pressure from the Department of Government Efficiency (DOGE), chose to depart rather than conform.

These departures are not benign transfers. They represent the scattering of core innovators and connectors whose insight and trust networks are irreplaceable. Without them, emerging AI systems risk becoming siloed projects rather than battlefield-enabling capabilities.

DOGE: Efficiency or Engineered Evisceration?

DOGE, instituted by a presidential executive order in January 2025, is authorized to slash perceived inefficiencies across federal agencies—often through AI-enhanced, automated assessments. Under the leadership of figures tied to Elon Musk and Vivek Ramaswamy, DOGE has repurposed its mandate to aggressively target leadership and innovation roles across the board—including in national defense.

DOGE has justified cuts using its proprietary AI systems to flag and eliminate “inefficient” programs, often without human oversight or contextual nuance. The CTO’s directorate was among its most high-profile targets, methodically identified and removed, despite its mission-critical nature.

To make matters worse, DOGE is reportedly comfortable with these decisions. One Pentagon official described it as a “theater of dominance,” not just cost-cutting, but deliberate erasure of institutional anchors to obfuscate the depth and breadth of the sacrifice.

The High-Stakes Fallout

Adversaries feast on the narrative that the US champions AI yet purges its own tech leadership overnight. “America cannibalizes its talent while claiming leadership in AI warfare,” such narratives go. These optics weaken American deterrence, erode allied confidence, and provide cover for Moscow, Beijing, and Pyongyang to reframe the battlefield narrative.

Domestic consequences are equally grim. The consistent removal of flagship tech roles projects a clear message to science, technology, engineering, and math (STEM) professionals; serve, and risk being discarded. That weakness is a recruitment boon for adversaries, national lab contractors, and tech-armed autocracies solving tomorrow’s warfare puzzles.

Real efficiencies lie not in gutting leadership but in fortifying it. Per the National Security Commission on AI, prioritizing disciplined recruitment and retention of technical talent, including a Digital Corps and AI fellowships, is key to American competitiveness. Instead, we witness the dismantling of precisely those anchor roles meant to shepherd AI innovation into combat-relevant systems.

The DOGE-Driven Dismantling of Tech Leadership

The concepts herein are alarming and reflect an institutional unraveling that directly undermines America’s global security posture and strategic deterrence in five critical ways. First, the elimination of the Chief Technology Officer (CTO) directorate from the Chief Digital and Artificial Intelligence Office (CDAO) strips away a core pillar of the Pentagon’s ability to adapt emerging technologies for battlefield advantage. This directorate was not redundant bureaucracy; it was the crucible in which ideas from national labs, industry, and warfighters were harmonized into operational capability.

By abruptly dismantling this team, the Department of Defense has extinguished a pipeline of institutional memory and strategic insight at the precise moment when rapid, informed, and integrated decision-making is needed. This brain drain parallels a historical pattern of self-sabotage and leaves adversaries uncontested in the tech talent race.

Second, the removal of high-level AI leadership is a propaganda gift to revisionist powers like China and Russia. These states are watching America voluntarily decapitate its own strategic leadership, an act they can now frame as proof of American decline. This strengthens their strategic messaging in influence campaigns aimed at allies, neutral states, and even American citizens.

“America cannibalizes its talent while claiming leadership in AI warfare” is not just a phrase, it is a weaponized narrative that demoralizes partners and emboldens adversaries to challenge American dominance in contested domains like cyberspace, space, and AI warfare.

Third, strategic deterrence hinges on credible capability and the perception of cohesion. DOGE’s algorithmic-driven targeting of leadership roles without contextual assessment introduces chaos into the acquisition and integration life cycle of military AI systems. Instead of creating synergistic effects across logistics, cyber, and command and control, the US risks building a fractured, siloed ecosystem that fails in joint operations.

By removing the very leaders who prevent stove piping, the US sabotages its ability to develop and field interoperable, scalable, and warfighter-ready AI tools. This systemic breakdown makes deterrence brittle, vulnerable to being cracked in future high-end conflicts.

Fourth, the US has struggled to compete with the private sector for AI and cybersecurity talent. By signaling that even elite government technologists are disposable under the guise of “efficiency,” this policy drives future talent away from public service. Those who might have joined a modern “Digital Corps” will instead seek stability and respect elsewhere, perhaps even abroad.

Strategic deterrence depends not only on weapons but on technologists who know how to deploy them. Gutting these roles ensures that tomorrow’s innovations will not make it past the lab, let alone onto the battlefield.

Fifth, DOGE’s use of automated assessments to eliminate “inefficiencies” without human oversight is a grotesque parody of reform. Its reliance on cold, context-blind algorithms to purge critical roles mimics adversary models of techno-authoritarianism, not democratic accountability. If allowed to continue, this will hollow out innovation across government agencies and military branches.

Efficiency is not the enemy, misapplied efficiency is. Strategic deterrence requires smart investments, not cost-cutting theater that sacrifices our warfighting edge on the altar of political optics.

Strategic Self-Sabotage Must Be Reversed

This is not merely streamlining, it is full-blown surrender. The dismantling of the CDAO’s CTO directorate and the broader DOGE initiative represents an engineered unraveling of the very leadership needed to project U.S. strategic deterrence in the AI era. Leadership is the vector through which technology becomes capability. Remove it, and you hand your adversaries not only the advantage, but the narrative.

Unless reversed, these concepts and actions will echo through wargames, deterrence failures, and battlefield losses. The US must stop cannibalizing its competitive edge and re-center its national security strategy on strengthening, not sidelining, its AI leadership.

Conclusion

Leadership is not just overhead on the funding spreadsheet; these leaders are our ammunition in the fight for global AI dominance. Removing them during a strategic inflection point is not reform, it is a self-made vulnerability, and as the US disables its own leadership of advanced technologies, it is dismantling future readiness.

The nation must insist on accountability. Cost-cutting means nothing if it costs the technological coherence to compete in tomorrow’s battles. In the strategic competition unfolding now, leadership is the weapon, and ceding it is surrender. This page out of the DOGE handbook should be shredded and burned. Remember, Iranian nuclear scientists were not dismantled by their own regime, they were destroyed by US and Israeli bombs.

Greg Sharpe is Marketing Director at the National Institute for Deterrence Studies. He is retired from the US Air Force. The views expressed are his own.

The Quiet Dismantling of America’s AI Warfighting Edge was originally published on Global Security Review.

This was not an isolated incident. Civilian-grade drones and other dual-use technologies are increasingly being used to survey or target public infrastructure. From energy grids to airports, the connective tissue of modern life is exposed to risks once confined to traditional warzones. These developments are reshaping global security policies and blurring the boundary between civilian and military domains.

Civilian Tech, Strategic Impact

Cheap unmanned aircraft systems (UAS) are now accessible worldwide. While drones were initially developed for military use, the most commonly deployed platforms today, such as DJI’s Mavic series, were originally built for civilian applications like aerial photography and videography. Their affordability, portability, and high-spec cameras made them commercially popular, but those same features have made them easy to repurpose for military contexts.

In particular, first-person view (FPV) drones, designed for immersive recreational flying, were rapidly adapted for frontline use in conflict. These drones are now routinely deployed with improvised explosives or used for precision reconnaissance. In Ukraine, both sides repurposed off-the-shelf drones in vast numbers; nearly two million were produced in 2024 alone. Many of these are equipped with AI-enabled navigation and targeting, underscoring how quickly civilian tech can be weaponised.

Non-state actors are following suit. Armed groups are using FPV drones for low-cost, high impact strikes on infrastructure, blurring the lines between military and civilian threats. This second drone age shows that national security vulnerabilities now stem as much from consumer technology as from conventional arsenals.

The broader implication is clear: private-sector innovations, often created without any defense intent, are shaping the battlefield. These companies bring novel use cases, technical advantages, or agile design processes that legacy defense contractors may overlook. Civilian tech is not just a risk; it is a potential strategic asset. Tapping into this ecosystem, especially among start-ups and experts, could redefine how the country protects critical infrastructure in an era of hybrid conflict.

Infrastructure in the Crosshairs

Modern infrastructure is a key target in modern conflicts or hybrid attacks, just like military bases traditionally were. In 2022, after the sabotage of the Nord Stream pipelines, over 70 drone sightings were reported near Norwegian offshore oil platforms. Oslo feared Russian-linked hybrid operations targeting Europe’s energy supply and deployed naval assets and invited NATO allies to assist in patrols.

Meanwhile, Ukraine’s energy grid suffered repeated drone and missile attacks, with waves of low-cost Shahed drones used to disable power plants. By spring 2024, roughly half of Ukraine’s electricity capacity was destroyed, forcing nationwide blackouts.

Outside conflict zones, attacks on infrastructure are also rising. In Sudan, a drone strike on a power station caused regional outages, and other drone attacks on water purification stations left the country on the brink of a significant Cholera outbreak. In the US, federal officials stopped an attack on a power grid by a man using an explosive-carrying drone.

Transportation hubs are vulnerable, too. In January 2025, drone activity shut down Riga Airport, disrupting dozens of flights.

 Gaps in Governance

 Despite growing risks, legal and operational frameworks remain fragmented. Drones and AI-driven surveillance systems often fall outside traditional arms control regimes. As a recent executive order put it, “Criminals, terrorists, and hostile foreign actors have intensified their weaponization of drone technologies, creating new and serious threats to our homeland.”

Jurisdictional confusion is common. In many countries, local authorities lack legal authority to respond to rogue drones above critical sites. Aviation safety rules and privacy laws create hesitation, giving bad actors a head start.

Even when threat awareness exists, coordination is inconsistent. The Cybersecurity and Infrastructure Security Agency warns that drones are used for surveillance and sabotage, yet they lack the comprehensive tools to oversee private-sector resilience or cross-border response.

 A Global Security Challenge

 Drone and AI threats are not confined by borders. In 2023, the European Commission launched a new counter-drone strategy, urging member states to harden infrastructure and coordinate airspace protections. NATO has added counter-UAS exercises to its joint drills, while AUKUS partners are beginning to share emerging drone and AI tactics.

But international law is lagging. There is still no global treaty governing the use of armed drones or autonomous surveillance. Export control regimes struggle to manage proliferation of AI-enabling components. At the UN, efforts to establish binding norms on autonomous weapons are stalled. Ad hoc coordination is, however, slowly improving.

When Norway’s oil platforms were threatened, NATO allies were called in within days. After drone sightings near Dutch and Belgian ports, neighboring governments exchanged countermeasure plans. These models suggest a path forward: rapid and collective responses based on shared tools, shared doctrine, and shared threat intelligence.

The future of civilian dual-use technologies will not be defined by innovators alone. Whether drones or AI software, these tools are already reshaping how adversaries threaten public safety and economic continuity. What is at stake is not just national security, but the resilience of infrastructure that supports daily life.

The Crucial Role of Start-ups in National Defense

 Civilian-origin technologies are now driving the next wave of defense capability. From FPV drones to AI surveillance tools, some of the most disruptive military applications today are emerging not from traditional defense primes but from commercial markets, often developed by start-ups with no military background.

A coordinated international framework is urgently needed, one that does not just support innovation and infrastructure protection but actively integrates civilian tech into defense planning. This means lowering the barriers for experts and start-ups to meaningfully contribute alongside legacy contractors. The United Kingdom’s recent Defence Review hinted at this shift, recognising that smaller firms are vital to national resilience, particularly when civilian infrastructure is under threat.

What is truly needed is a NATO-wide or broader allied framework that enables cross-border collaboration, streamlines regulation, and opens up procurement pathways.

Today, many start-ups working at the intersection of security and technology face steep hurdles: limited access to capital, opaque compliance regimes, and procurement processes designed around, and for, large incumbents. Yet by creating space for their innovation, we can modernize collective defense from the ground up, using the very same civilian tools that adversaries are already turning into weapons.

A coordinated international framework is urgently needed, one that not only supports innovation and infrastructure protection but also lowers barriers to experts and start-ups to contribute more meaningfully alongside traditional defense primes. The UK’s recent Defence Review hinted at this shift, recognizing the value smaller firms bring to national resilience. It is time to take similar action at home.

Harry Geisler is the CEO of YAVA.

How Civilian Dual-Use Technologies Are Reshaping Global Security Policies was originally published on Global Security Review.

Golden Dome is focused on specific missile threats to the American homeland. AUKUS pillar two is designed to reduce the significant lead China has in dual-use emerging technologies. An “extended” Golden Dome approach that produces strong and resilient allies may provide greater strategic deterrence than an America alone approach.

As stronger allies contribute more to collective defense through burden sharing, this can reduce the financial and military burden on the United States. Capable allies can deter aggression and manage local conflicts, promoting regional stability without constant American intervention.

If allies are seen as weak and easily overrun, it may undermine the credibility of alliances and security guarantees, thereby emboldening adversaries. Strong allies often bring advanced technologies and capabilities that enhance joint operations through interoperability and innovation.

Defeating fractional orbital bombardment system (FOBS), intercontinental ballistic missiles (ICBM), submarine-launched ballistic missiles (SLBM), hypersonic glide weapons, and land-attack cruise missile threats is the focus of Golden Dome, which “proposes a multilayered defense network capable of intercepting threats during the boost, midcourse, and terminal stages of missile flight.” Some analysts argue that it is easiest to target these threats in the boost/ascent phase.

Targeting the boost phase can either occur from allied territory, targeting North Korean missiles from South Korea, or the homeland. The boost phase can also be targeted from space. However, targeting from space is not without its own unique set of challenges. Either way, it will not be solved by America without its allies.

Arguably, five-eyes countries (Australia, Canada, New Zealand, United Kingdom, and United States) are already entangled in American nuclear command, control, and communications (NC3). Furthermore, the US operates in coordination with other military forces as part of broader coalition operations. Hence, extending Golden Dome to allies is not only possible, but can further leverage the AUKUS pillar two effort. Moreover, a missile defense system consists of sensors, interceptors, and command-and-control systems that work together to detect, track, and intercept incoming missiles.

These necessary components exist in AUKUS pillar two working groups like the cyber capabilities, artificial intelligence (AI) and autonomy, quantum technologies, undersea capabilities, hypersonics and counter-hypersonics, electronic warfare capabilities, innovation and information sharing, and the deep-space advanced radar capability program (DARC).

AUKUS pillar two leadership should prioritize the development of technologies and supporting systems for an effective extended Golden Dome architecture. America is unlikely to solve the problem in isolation by building a “tightly integrated system of low Earth orbit (LEO) satellites, terrestrial radar stations, directed-energy platforms, and kinetic interceptors” that senses, decides, and neutralizes incoming missiles. The linkages and opportunities for the prioritization of advanced technology development for missile defense can be found in the following summaries.

Cyber capabilities encompass both offensive and defensive operations for missile defense. Offensive cyber tools are used to deter adversaries and disrupt their operations through tactics such as cyber-reconnaissance, communication isolation, targeted strikes, and network intrusions. Defensively, military forces can prioritize robust network protection, active threat disruption, and seamless coordination across units to safeguard critical systems. Cyber operations can enhance intelligence gathering, command and control, and information warfare to shape public perception and the broader information environment. As conflict evolves, training personnel in cyber tactics and integrating machine learning for threat detection and analysis can maintain strategic advantage.

AI and autonomy can transform missile defense and military operations by enhancing efficiency, precision, and decision-making. Autonomous weapon systems are used for reconnaissance, surveillance, and combat missions. AI-driven wargaming platforms simulate real-world combat scenarios to help strategists test tactics and improve readiness. In command and control, AI supports real-time data processing and analysis. AI optimizes logistics by improving resource allocation, supply-chain management, and transportation.

In intelligence and surveillance, AI analyzes vast datasets to detect patterns and identify threats. Additionally, AI monitors threats and predicts future events. Human-machine teaming allows AI systems to collaborate with human operators, combining strengths and minimizing errors.

Quantum technologies transform missile defenses through enhanced security, operational efficiency, and advanced training. In cybersecurity, quantum-resistant cryptography is being developed to protect against the threat quantum computers pose to traditional encryption. Quantum key distribution offers highly secure communication by transmitting encryption keys through quantum channels, making interception nearly impossible.

In military operations, quantum algorithms can optimize logistics, supply chains, and battlefield strategies by analyzing complex data in real time. Quantum computing could process data in real time, enabling missile defense systems to rapidly analyze incoming threats, allowing for quicker decision-making and more effective interception. Additionally, quantum computing could enable highly accurate simulations of complex systems like nuclear reactions and weapon designs.

Undersea capabilities encompass a wide range of offensive and defensive functions that contribute to missile defense. Offensively, submarines and other undersea platforms can strike surface vessels, submarines, and land-based targets. They are also instrumental in inserting special forces into hostile territory for reconnaissance or sabotage missions. Undersea vehicles play a key role in mine warfare, either by laying mines or clearing minefields. On the defensive side, these platforms are vital for anti-submarine warfare, enabling the detection and neutralization of enemy submarines. They also support surveillance and reconnaissance efforts, gathering intelligence on enemy naval movements. Undersea systems help protect vital infrastructure such as pipelines and communication cables and help ensure safe navigation.

Hypersonic weapons and counter-hypersonic systems are vital to missile defense operations. Hypersonic glide weapons and hypersonic cruise missiles are designed to strike targets with exceptional speed, maneuverability, and precision while evading traditional defenses. Counter-hypersonic capabilities include advanced sensors and tracking systems like radar and satellite imaging to detect and monitor hypersonic weapons. Hypersonic interceptors aim to neutralize threats mid-flight, while high-power lasers and microwave weapons can disrupt their guidance systems. Effective command-and-control systems are essential for coordinating these defenses, and soft-kill measures such as cyberattacks offer additional means to interfere with hypersonic weapons.

Electronic warfare is fundamental for gaining military advantages in cross-domain missile defense. Electronic attack includes jamming enemy communications, radar, and navigation systems. It also includes spoofing—sending false signals to enemy forces. Electromagnetic or directed-energy weapons disable or destroy enemy assets. Electronic protection ensures secure communication through encryption and satellite links and employs electronic countermeasures (ECM) to defend against attack. Electronic counter-countermeasures are used to overcome enemy ECM and maintain operational effectiveness. Electronic support can be focused on gathering intelligence through signals interception, using sensors for surveillance and target acquisition, and detecting threats in the electromagnetic spectrum.

            In short, under the auspices of AUKUS pillar two, Australia and the United Kingdom can contribute to Golden Dome in ways that many may not be thinking about. As longtime allies with a shared culture, history, and values, working together on Golden Dome just makes sense.

Natalie Treloar is a Senior Analyst at the National Institute for Deterrence Studies (NIDS), a Non-Resident Fellow at the Indo-Pacific Studies Center (IPSC), the Australian Company Director of Alpha-India Consultancy, and a cohost of the NIDS Deterrence Down Under Podcast.

Extending the Golden Dome: AUKUS Pillar 2 was originally published on Global Security Review.

These unmanned and precision attacks targeted strategic locations, ranging from early warning radar sites to critical military installations. They did not provoke the feared nuclear response. Instead, these operations exposed a new threat calculus where persistence, precision, and the power of perception are paramount.

Recent analyses suggest that such drone operations contributed to shifting risk assessments within adversary states, where even a 10 percent to 15 percent error in perception could lead to miscalculation. American nuclear strategists now contend with an urgent need to rethink deterrence as the boundary between conventional and nuclear erodes.

Spectral Shifts: Rethinking Strategic Assumptions

For decades, American nuclear strategy hinged on the assumption that any conventional attack on nuclear command and control assets would inevitably trigger a nuclear counter-response. Data from Cold War–era exercises and subsequent real-world incidents reinforced this mindset among defense planners. Ukraine’s repeated drone strikes on sensitive Russian assets, including radar installations integral to Russia’s early warning systems, force a reconsideration of long-held assumptions.

The Kremlin’s response is notably restrained, treating these incursions as manageable costs rather than triggers for nuclear escalation. This strategic restraint, observed in multiple public and classified communications from Moscow, signals that deterrence may now rely less on the brute force of nuclear capability and more on the sophistication of targeting and intent. The takeaway for modern policymakers is that deterrence must now incorporate a broader array of factors, including technology-driven precision and the adversary’s threshold for escalation.

Phantom Impact: Redefining Strategy Beyond Nuclear Might

The era when the primary measure of strategic impact was synonymous with nuclear firepower is ending. Ukraine’s innovative use of low-cost, high-precision drones demonstrates that small platforms can disrupt traditional security calculations. Recent reports from defense think tanks estimate that the unit cost of drone operations is less than 1 percent of what a conventional fighter aircraft mission might cost, yet their operational impact in terms of intelligence and tactical disruption is comparable in key areas.

These drones infiltrate deep into adversary territory and strike high-value military and economic assets once presumed invulnerable. Such operational dynamics challenge the long-standing monopoly of nuclear-armed states over credible homeland threats. American planners must now recalibrate their threat models to integrate non-nuclear options, recognizing that the future of strategic impact is both more economical and more technologically complex than ever before.

Haunted Homelands: The Crumbling Illusion of Sanctuary

During the Cold War, vast distances, natural barriers, and the geographic isolation provided by oceans created the comforting illusion that major powers could enjoy an impenetrable sanctuary. Today, that illusion is crumbling. Ukraine’s drone operations are a vivid demonstration that even regions thought to be well-protected can be penetrated. Attacks targeting Russia’s early warning networks, critical oil infrastructure, and military bases reveal that no area can rest on its laurels.

American infrastructure, ranging from energy grids to communication systems and early warning radars, face elevated risks in an age of highly agile autonomous systems. Consider that the global market for unmanned aerial vehicles is projected to reach nearly $50 billion by 2030. Considering this, there is an immediate imperative to overhaul homeland defense strategies. Rapid response protocols, increased situational awareness, and investment in counter-drone technologies are no longer optional. They are emerging as essential components of modern deterrence.

Phantom Signals: How Optics and Intent Drive Escalation

One of the most remarkable aspects of Ukraine’s campaign is its ability to secure tactical advantages without spiraling into uncontrolled escalation. The success of these drone strikes lies in their careful timing, precision, and measured execution. Ukrainian forces consistently space out operations and meticulously choose targets that convey national resolve without risking mass casualties. This dual messaging, delivering a tangible operational effect while sending a clear political signal, underscores a critical evolution in deterrence thinking.

Today, the optics and perceived intent behind an action can be as decisive as the physical impact. One analysis points out that misinterpretations of strategic intent now pose as much risk of inadvertent escalation as traditional force-on-force scenarios. For the United States, this means that developing clear, well-articulated signaling frameworks is crucial. Such frameworks must enable policymakers and military leaders to assert credible force while avoiding actions that might be misread as provocative by adversaries. In a world where every action is scrutinized and the margins for error are thinning, clarity in communication becomes a cornerstone of modern deterrence.

Ghosts in the Arsenal: Integrating Drones into Deterrence

Drones are transcending their traditional role on the battlefield and are emerging as indispensable strategic assets. Modern unmanned systems serve multiple roles, from surveillance and intelligence gathering to direct precision strikes against key targets. Their integration is revolutionizing how military operations are conducted without risking human life. Moreover, these systems have the added benefit of being less politically charged than manned strike platforms. However, their growing prominence also introduces the potential for miscalculation.

With investments in drone technology doubling over the past decade in many leading militaries, the United States must swiftly incorporate these assets into its overarching deterrence framework. This requires the formulation of robust policies that define the operational limits and acceptable contexts for drone employment, comprehensive training programs for commanders in escalation management, and public messaging that reinforces strategic resolve without escalating tensions. The rapid pace of technological adoption means that the window for effective integration is short, and strategic agility is paramount.

Phantoms of the Future: Recasting Deterrence in the Drone Age

Retaining U.S. strategic credibility in the coming decades will demand an evolution beyond a deterrence model solely anchored in nuclear might. Although nuclear forces remain critical, they are no longer the exclusive instruments that shape adversary behavior in today’s multidomain conflicts. The future of deterrence depends on a seamless strategy where nuclear and non-nuclear capabilities are coherently integrated. This entails developing a comprehensive national doctrine for drone utilization that explicitly defines clear thresholds for action, acceptable target sets, and robust escalation-management protocols. In parallel, efforts must focus on modernizing homeland defenses to counter the threat of long-range, autonomous drone attacks, especially in sectors such as space-based assets, energy, and telecommunications. Data from defense budget analyses show that if every NATO member met the 2 percent gross domestic product defense spending target, the alliance’s budget would increase by over $100 billion annually. Such investments, along with analogous U.S. initiatives to enhance technological resilience, are crucial if deterrence is to remain credible and effective in this new operational environment.

Final Haunting: Embracing the Ghostly Evolution of Deterrence

“Ghosts in the Skies” is not just a metaphor; it encapsulates the profound transformation underway in modern deterrence. Ukraine’s innovative use of drone technology is forcefully redefining the conventional wisdom that has long informed global security policy. This paradigm shift challenges entrenched assumptions and demands a rapid evolution of U.S. military strategy. In an era of hybrid threats and rapid technological change, our global security environment is more complex and interdependent than ever before. The future of deterrence will rely on the capacity to adapt swiftly, integrate non-linear threat responses, and build flexible defense systems that are as agile as the adversaries they are designed to deter. The message for policymakers is clear: embrace this ghostly evolution now, for in the emerging multidomain battlefield every misstep carries the risk of destabilizing not only regional security but also global order.

The transformation in deterrence prompted by Ukraine’s drone operations is a stark reminder that innovation in warfare can render old paradigms obsolete. As nations invest in cost-effective, high-precision autonomous systems, the calculus of deterrence will continue to shift, compelling the United States and its allies to rethink both doctrine and defense spending. In this new era, where even the faintest ghost can upend strategic balance, the ability to adapt and respond with agility will be the true measure of national security.

Brandon Toliver, PhD, serves on the A4 staff of Headquarters Air Force. The views expressed are those of the author alone.

Ghosts in the Skies: How Ukraine’s Drone Tactics Recast Modern Deterrence was originally published on Global Security Review.

As great powers become entangled in trade disputes, the spillover effects threaten to undermine the cooperative spirit essential for effective arms control. These economic conflicts erode bilateral relationships, making it even more challenging to negotiate future agreements on critical and emerging domains such as artificial intelligence, cyber warfare, and the militarization of outer space.

Tariffs can disrupt trade, increase prices, stifle innovation, and agitate the supply chain. Moreover, it can weaken American global leadership as long-term allies face an American president unwilling to accept high tariffs on American exports while guaranteeing low tariffs on imports. American efforts to counter China are disrupted by tariff disputes as well, as allies and foes coordinate their strategies for countering President Trump’s effort to reduce tariffs on American exports. The president’s actions erode the confidence of allies in extended nuclear deterrence because allies begin to question whether the United States will continue to subsidize security, if they are demanding an end to protective tariffs.

The tariff dispute between China and the US, two large trading partners, severely affects arms control and strategic stability. It exacerbates crisis, heightens mistrust, undermines confidence-building measures, and curtails the possibility of a constructive arms control framework. It is, however, not unexpected. The United States long tolerated protective tariffs and poor intellectual property protections by the Chinese. Thus, rebalancing should not come as any surprise, even if it is disconcerting.

American technological superiority, innovation, cutting-edge military and civilian technology, and significant soft-power influence are the key components of its hegemonic status. Central to this dominance is access to rare earth minerals, which are critical for producing advanced weaponry, including missiles, drones, artificial intelligence (AI)–driven systems, and cutting-edge civilian technologies. However, the US faces a growing vulnerability in this domain, as China currently controls approximately 70 percent of the global supply of rare earth elements. This strategic dependency seriously challenges American innovation and military effectiveness.

However, the American military is already in decline according to a report from the US Army Science Board, which reveals the limitations of the American industrial base. The report warned that the US may be “incapable of meeting the munitions demand created by a potential future fight against a peer adversary.”

The conflict in Ukraine underscores this concern, as the US struggles to maintain adequate production levels of artillery shells, drones, rockets, and missiles primarily due to insufficient stockpiles of critical components. Furthermore, structural deficiencies are increasingly evident within the US Navy. As of 2023, less than 68 percent of surface fleet ships were rated “mission-capable,” with only 63 percent of attack submarines meeting the same standard. Compounding these challenges, American shipyards are currently unable to produce more than three destroyers annually. By contrast, China possesses 13 shipyards capable of constructing large and deep-draft vessels one of which reportedly surpasses the entire US shipbuilding capacity.

The ongoing US-China tariff dispute reflects a zero-sum strategic mindset, intensifying hostilities and reducing incentives for restraint or cooperation. This economic confrontation has already narrowed the space for meaningful arms control dialogue. The imposition of sanctions on each other’s officials and entities alongside increasingly provocative rhetoric from senior officials risks further erosions of the fragile trust necessary for future diplomatic engagement, particularly in arms control and emerging domains such as AI, cyber warfare, and outer space.

Traditionally, China rejects arms control as the US had far more weapons than China. Tarriff disputes reinforce the narrative that the US is using economic means to contain China’s rise, making China less likely to engage in future arms control discussions. Moreover, diplomatic relations and multilateralism will weaken and increase mistrust—leaving no room for constructive future arms control talks.

Arms control forums are increasingly fragile as mutual trust and respect for arms control and disarmament among the great powers declines. Tariff disputes create mistrust, which complicates the verification process, and the supply chain supporting the global cooperative arms control verification limits the ability to enforce or verify compliance with arms control agreements.

Trade disputes deepen mistrust and normalize confrontation over cooperation, secrecy over transparency, and arms racing over arms control. This leads to proliferation while making accountability less relative and paves the way for a fragmented world order with little or no hope for future arms control.

Moreover, it increases the chances future administrations face a backlash for rolling back policies that demand equitable treatment of American trade goods, fearing internal backlash for being soft on China. This will permanently lock both states into an adversarial stance, reducing any flexibility in arms control. Moreover, if the US wants to reconsider any future arms control discussion, political costs may prove too high, leaving fewer options to prevent an arms race.

In 2019, President Donald Trump withdrew the United States from the Intermediate-Range Nuclear Forces (INF) Treaty, after Russian cheating became too hard to ignore.  Meanwhile, the future of New START remains uncertain and fragile.

At such a critical juncture, President Trump’s demand that American exports sent to foreign markets receive equal treatment to those foreign imports entering the United States, penalizing both allies and adversaries who enact punitive tariffs, may be unsettling for recipients of increased tariffs, but it should come as no surprise that an American president elected to stop the outflow of American wealth would seek equal treatment for American exports.

Many Americans are willing to see the subsidies to foreign nations—that are brought about by high tariffs on American exports and American extended deterrence—come to an end. This may lead to an erosion of confidence in American benevolence by some states.

South Korea, for example, was shocked that the United States took offense to the very protectionist policies that allowed South Korea to become the third largest auto producer in the United States, all while effectively preventing American automobile sales in South Korea. Thus, South Korea is reconsidering their non-nuclear status and exploring an independent nuclear deterrent. As President Trump seeks to level the playing field by forcing down the tariffs of trade partners, under the threat of higher tariffs on imported goods, allies should come to understand that the United States is increasingly unwilling to subsidize others. While this may be a jarring fact, it is not a purposeful effort to destabilize arms control.

Thus, trade disputes may cause allies and adversaries to reconsider American willingness to accept unequal trade and disproportionate burden sharing. In the long run, equilibrium will return. It is just a matter of what that equilibrium may look like.

Muhammad Shahzad Akram is a Research Officer at the Center for International Strategic Studies, Azad Jammu Kashmir. He holds an MPhil in International Relations from Quaid-i-Azam University, Islamabad. He is an alumnus of the Near East South Asia (NESA) Center for Strategic Studies, National Defense University (NDU), Washington, DC. His expertise includes cyber warfare and strategy, arms control, and disarmament.

How Trade Disputes Threaten the Future of Arms Control was originally published on Global Security Review.

This digital divide is not just about access to technology but also about the ability to harness AI’s potential for economic, social, and global political empowerment. The implications of the AI divide are leading to a tech race that impact geopolitical power dynamics, exacerbating competition major powers like the US, China, France, and India. Depending on how the race ends, it could swing the balance of power in a negative direction.

AI Paris Summit

The recent AI Action Summit held in Paris emerged as a pivotal event that highlights both the opportunities and challenges associated with this evolving AI tech race. This summit serves as a beacon of innovation, encouraging France and India to collaborate more closely, while also exposing the complex interplay of international reactions, particularly from major powers like the United States, United Kingdom (UK), and China.

The summit focused on expanding AI’s boundaries while respecting environmental and ethical obligations. France’s President Emmanuel Macron reaffirmed his nation’s commitment to AI innovation, while maintaining high regulatory standards that draw parallels to Notre Dame Cathedral’s restoration. Such a strategy will likely accelerate AI ventures and foster innovation.

However, the regulation proposed was also a noose around the neck of the summit’s emphasis—deregulation. It is worth considering whether drastic deregulation will lead to genuine advances or the weakening of certain crucial safety nets as the world grapples with how to handle ever expanding data and the fragmentation that result from the intersection of geopolitical interests and the private ownership of data and capability. The US and China approach the issue differently than Europe, whose adoption of the AI Act (2023) will see the first comprehensive AI regulation in the world.

Many wondered how agentic AI will impact the balance of power. Whether AI will have a net positive or negative effect is uncertain. The rate at which agentic AI is developed and adopted in the three main economic blocs of China, Europe, and the United States will determine much.

India-France AI Alliance

India and France are forming a partnership to leverage AI’s full potential globally, sharing knowledge, resources, and best practices to create a robust framework for AI initiatives and global dialogue. During the summit, leaders from both countries addressed how their alliance could facilitate joint ventures, research collaborations, and talent exchange programs. Prime Minister Narendra Modi and President Macron foresaw great potential for future cooperation in 2019 when they endorsed the Indo-French Roadmap on Cybersecurity and Digital Technology. India and France, founding members of the Global Partnership on Artificial Intelligence, aim to develop a safe, open, secure, and ethical AI for human development and global commons.

Global Reactions

As the world watches the developments in Paris, reactions from other global powers, notably China and the United States, added another layer of complexity to the conversation around AI regulation and collaboration. In recent years, both states have invested heavily in AI research and development, seeing it as critical to their national security and economic competitiveness.

China’s approach to AI governance contrasts significantly with that of France and India. While the Chinese government prioritizes rapid innovation with minimal regulatory oversight, this led to concerns about privacy, surveillance, and ethical implications. The US, on the other hand, grapples with debates around data privacy, corporate responsibility, and the potential for AI misuse. As a result, the responses from these two states illustrate differing philosophies about how best to harness AI’s potential while safeguarding public interests.

The US and UK declined to sign a declaration on “inclusive and sustainable” artificial intelligence at the Paris summit, in a blow to hopes for a concerted approach to developing and regulating the technology. The document was backed by 60 other signatories on February 11, 2025, including France, China, India, Japan, Australia, and Canada.

The reactions from the relevant stakeholders highlight the urgent need for international cooperation and dialogue. As AI transcends borders, creating harmonized standards and frameworks could mitigate risks associated with its deployment.

Opportunities and Challenges Ahead

The summit concluded by emphasizing the need for proactive state engagement in AI regulation, prioritizing innovation while protecting individual rights and societal values. This, participants believed, would allow the world to fully capitalize on AI’s benefits.

As the world grapples with the realities of increasingly AI-driven technology, the voices of diverse stakeholders, including technologists, ethicists, policymakers, and civil society must be heard in shaping the future of AI. Under the flag of the AI Paris Summit, the India-France AI alliance is entering into a new and more unpredictable phase. By defying red tape and cultivating a spirit of cooperation, states are setting the pace for unlocking unprecedented opportunities while highlighting the inherent challenges of this transformative technology.

Huma Rehman is a project consultant, consultant, and defense and foreign affairs analyst. She can be reached at X @HumaRehman1.

AI Paris Summit and Emerging Paradox of AI Haves and Have-Nots was originally published on Global Security Review.

In the UK, under Prime Minister Keir Starmer, gross domestic product (GDP) growth has stalled. PM Starmer committed to spending at least 2.5 percent of GDP on defense. However, funding has not materialized. A clear plan for future UK defense may not emerge until the Summer of 2025.

In Germany, left-of-center Chancellor Scholz dissolved his coalition, and the Christian Democratic Union’s Friedrich Merz is expected to take over with a right-of-center coalition after snap elections in the first quarter of 2025. However, the rise of the Alternative for Germany (AfD) party, whose leader recently chatted with Elon Musk, remains a wild card. Germany has yet to define and fund its defense budget at the 2 percent of GDP threshold.

Chancellor Scholz, who paid a last visit to Ukraine in early December 2024, committed to deliver Patriot systems in 2025. Merz wants to up the ante with the delivery of Taurus medium-range missiles to Kyiv. While the Ukraine dossier is being used as a political football, a root cause of the problem is that NATO’s defense math just does not add up.

In France, the downfall of the Barnier government stems from rejection of his budget. The new centrist prime minister François Bayrou now faces the same budgetary dead-end and parliamentary gridlock. Barnier was punished for trying to reduce the French deficit to 5 percent of GDP in 2025. The European Union (EU) rule is 3 percent as the maximum.

France’s current deficit is over 6 percent of GDP and might end up closer to 7 percent. France is in third place for debt-to-GDP ratio at 111 percent. Only Greece and Italy have a worse situation.

The EU average is 82 percent, with Germany maintaining a healthy 62 percent. There is a looming debt crisis, and it will not be possible to kick the can down the road forever. France already passed its 2024–2030 Military Programming Act (Loi de Programmation Militaire).

President Macron is committed to seeing it through until the 2027 presidential election. Yet the funding needs to be in place for France to remain the top European spender in civilian and military space.

At the other end of the spectrum is Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. These Nordic and Baltic states clearly lead the way, as they are all becoming increasingly significant players in European security. In particular, Sweden and Finland’s membership in NATO plays a central role in securing the High North and deterring Russia, as these two countries continue to supercharge NATO’s deterrence.

Meanwhile, Russian President Vladimir Putin placed his economy on a war footing. His defense budget steadily increased over the past two years. Of course, this strains society’s resources and patience after nearly three years of war. The vast majority of Russian society is wired to bite the bullet and take the pain for as long as necessary until an endgame pans out. And for good measure, Putin will maintain his nuclear swagger at the highest level.

For the West, it is time to think deeply about deterring the use of low-yield theater nuclear weapons. This is a capability that not only Russia but China has deployed in great numbers and is in the process of augmenting.

The latest uncertainty comes from NATO member Romania. The courts unexpectedly nullified the results of the first round of presidential elections—deeming them unlawful because of alleged Russian interference.

The establishment candidate, who favors EU and NATO, is likely to win. But blaming the surge on an alleged TikTok-driven Russian conspiracy misses the deeper picture: across Europe, from France to Germany to Austria to Hungary to Romania, there is a rising wave of discontent with the current European order. Thus, “extremist” parties are supported in disrupting mainstream left-of-center politics.

The grapes of wrath stem from stalled economies, unwanted immigration from Africa and the Middle East, growing crime and social disruption, and a welfare state that cannot afford both native born citizens and the influx of immigrants. Europe’s wealth level gap with the United States is 30 percent and growing.

By culture, Europe disdains billionaires and even taxes or tries to interdict their free speech, as exemplified in a recent exchange on X (Twitter) between former European Commissioner Thierry Breton and Elon Musk. Not wired for animal instinct, creative destruction, freedom of innovation, entrepreneurship, and disruptive capitalism, European socialism loathes wealth creation as a positive value.

Even though history shows that socialism only leads to failure, or, in the words of Lady Thatcher, “running out of other people’s money,” Europeans tend to shrug and call that state of things “Venezuela without the sun.”

As long as this does not change, the best and the brightest will keep flocking to the US, be it from India, Latin America, or South Africa. To say that it is time for Europe to get its act together would be an understatement. Europe needs to understand that it can never develop into an autonomous power without the free creation of wealth, which is required to fund the defenses Europe requires.

Christophe Bosquillon is a Senior Fellow at the National Institute for Deterrence Studies. He has over 30 years of international experience in general management, foreign direct investment, and private equity and fund management across various industries in Europe and the Pacific Basin. The views expressed in this article are the author’s own.

More Political Uncertainties Affecting Europe’s Defense Build-up was originally published on Global Security Review.

Too few Americans contemplate the role of digital currency volatility in acting as a barrier or an enabler to nuclear deterrence. The reality is that there are opportunities and risks that volatile cryptocurrency plays in the strategic calculus of nuclear states.

Cryptocurrency and Geopolitical Shifts

Cryptocurrencies are decentralized and borderless, challenging traditional financial systems and reshaping how states interact economically. Their volatility stems from market immaturity, speculative trading, regulatory uncertainties, and evolution of these ever-changing technologies. Essentially created to prevent intermediaries, like banks and financial institutions, cryptocurrencies lay the foundation for trustless transactions for illicit activities.

This volatile mix of person-to-person transactions and zero oversight introduces both unpredictability and opportunity, raising questions about their implications for nuclear deterrence, which now must deal with a domain that includes ungoverned access to financial streams that can be used by state and non-state actors to engage in elicit behavior that undermines deterrence stability.

Nuclear deterrence relies on a delicate balance of power, with states maintaining assured second-strike capabilities to dissuade adversaries from initiating conflict. This balance hinges on credibility and capability. Cryptocurrencies, with their volatile swings in value, could serve to undermine stability within a country or enable elicit actors to engage in a range of nonnuclear actions that undermine strategic stability.

The Risks of Cryptocurrency Volatility as a Barrier

Cryptocurrency volatility can act as a barrier to nuclear deterrence by creating financial instability and undermining a state’s ability to project economic power. Traditional nuclear powers depend on stable economies to maintain robust defense capabilities, fund deterrence strategies, and support diplomatic efforts. Sharp and unpredictable fluctuations in digital assets can undermine financial stability, weakening a state’s capacity to fund critical defense initiatives.

For the United States, crypto is not a major issue currently. But, for North Korea, who funds its nuclear program through elicit activities, crypto is important. Proliferators also use crypto to conduct activity. Instability in crypto makes illicit activity even more high stakes and unpredictable.

Instability creates advantages for state and non-state actors to exploit cryptocurrency markets for nefarious purposes, such as evading sanctions, financing proliferation, and bypassing traditional financial controls. The decentralized nature of cryptocurrencies complicates efforts to monitor, track, and regulate illicit activities, potentially undermining efforts to prevent the spread of nuclear weapons or restrict financing for state and non-state actors pursuing destabilizing weapons programs.

Cryptocurrency instability also presents a challenge to strategic stability through cyber threats. If critical financial systems or exchanges are disrupted, or if adversaries manipulate markets to harm a nation’s economy, it could create economic shocks severe enough to destabilize deterrence relationships, increase miscalculation risks, or fuel insecurity-driven arms build-ups.

The Darknet and Conflict Escalation

Darknet cryptocurrency markets empower bad actors by offering anonymity and decentralized financial tools, enabling a wide range of conflict-escalating activities. These markets facilitate the purchase of illegal arms, military-grade technology, and hacking tools, often used to destabilize regions and target critical infrastructure (command-and-control systems) through cyberattacks.

Terror organizations leverage cryptocurrencies for anonymous funding, allowing them to finance operations, recruit globally, and expand their influence. Sanctioned entities exploit these markets to bypass international restrictions and acquire resources that fuel aggressive actions.

The ability to transact anonymously with cryptocurrencies also shields organized crime, including narcotics and human trafficking, whose revenues often fund conflict zones and insurgent groups. Covert exchanges on the darknet can increase espionage, destabilize international relations, and provoke hostilities to serve a radically motivated agenda.

In parallel, extremist groups utilize these platforms to spread propaganda, incite violence, and radicalize populations, further destabilizing fragile regions. The combination of anonymity, decentralized systems, and hidden economies presents a formidable challenge for global security efforts aimed at conflict prevention and stability.

Cryptocurrency as an Enabler of Nuclear Deterrence

On the other hand, cryptocurrency volatility also opens new avenues for strengthening nuclear deterrence through financial resilience and innovation. The decentralized nature of digital assets can enable states to diversify their financial resources and reduce dependency on traditional systems that might be vulnerable to adversarial influence or geopolitical tensions. In times of economic crisis or sanctions, cryptocurrencies can provide states with alternative means to maintain fiscal stability, thus supporting their deterrent capabilities. Countering bad activities with good can be as challenging as the reliance on traditional financial stability for positive security assurance.

Furthermore, blockchain technology, which underpins cryptocurrencies, offers potential for transparency, accountability, and verification mechanisms in arms control agreements. By leveraging blockchain, states can create tamper-proof records for tracking nuclear materials, enhancing verification regimes, and building trust between adversaries. The volatility of digital assets may fuel innovation and drive investment into these applications, ultimately strengthening nuclear stability and deterrence structures.

Balancing the Risks and Opportunities

While the volatility of cryptocurrencies poses undeniable risks, it is essential to approach them with a nuanced perspective to find the right balance between risk and reward. Policymakers must strike a balance between leveraging the opportunities that digital assets present and mitigating their risks to global security. Collaborative efforts to regulate and stabilize cryptocurrency markets can reduce the likelihood of financial instability while harnessing the potential of decentralized systems.

In addition, enhanced cybersecurity measures must accompany any state or multilateral effort to integrate cryptocurrency into the financial systems that underpin deterrence capabilities. Protecting digital infrastructure against malicious actors will ensure that the advantages of decentralized assets are not overshadowed by their exploitation for destabilizing purposes.

A New Strategic Frontier

The volatility of cryptocurrency markets is both a challenge and a frontier for instability of nuclear deterrence. While it poses risks through financial instability, illicit use, and cyber threats, it also offers opportunities for financial resilience, innovation, and transparency. In today’s evolving digital environment, nations must adapt to this dual-edged sword, developing strategies that incorporate the volatility of digital assets into a comprehensive approach to deterrence.

Ultimately, whether cryptocurrencies become a barrier or enabler of nuclear deterrence depends on how nations, regions, and regulators in the broader international community respond to this evolving challenge. By advocating cooperation, innovation, and regulation, cryptocurrencies can strengthen global security architectures and contribute to a stable nuclear order—turning volatility into a force for strategic stability and peace.

Greg Sharpe is the Marketing and Communications Director at the National Institute for Deterrence Studies. The views expressed in this article are his own.

The Volatility of Cryptocurrency: Barrier or Enabler of Nuclear Escalation? was originally published on Global Security Review.

The recent passage of the Framework Convention on Artificial Intelligence by the Council of Europe marks a significant turning point in the quest for effective and long-lasting control of AI. The document is a statement about how European states will harness AI, a relatively new and powerful technology, to empower humanity while limiting its abuses.

The March 2024 adoption of a US-led United Nations General Assembly resolution on seizing the opportunities of safe, secure, and trustworthy artificial intelligence systems for sustainable development also highlights the common ground the United States shares with Europe and democracies around the world. While the US differs in some important areas with Europe, the significant agreement is valuable. This convention provides a foundation for others to build on.

Although new technologies often appear benign at first glance, there are many ways AI, in particular, can negatively impact the values held dear by so many around the world. From facial recognition systems interfering with privacy to machine learning that amplifies injustice, the potential cost of AI’s misuse is high.

Until now, there was not an effort at global governance of AI. This fostered a string of national laws that lack the capacity to address the transnational nature of AI adequately. A system of fractured development silos creates a wide gap wherein technological advancement is prioritized over ethics.

There are a few AI regulatory developments  around the world for AI management worthy of note. First, the US House of Representatives debated the Digital Services Oversight and Safety Act of 2022 (H.R.6796) and the Algorithmic Accountability Act of 2023 (H.R. 5628). The AI Disclosure Act of 2023 (H.R. 3831) was also introduced before the House of Representatives.

Canada saw the introduction of the Artificial Intelligence Data Act (AIDA). The European Parliament began discussing the EU Artificial Intelligence Act in 2023, which represents a shift toward “hard law.” China is also addressing the issue and undertook the Interim Administrative Measures for the Management of Generative AI Services, which was enacted in 2023.

Recently, the United States passed the 2024 National Defense Authorization Act, which included a five-year implementation plan to adopt AI applications to accelerate decision advantage for both business efficacy as well as warfighting capability.

China also released the Global AI Governance Initiative, “calling for all countries under the principles of extensive consultation, joint contribution, and shared benefits to enhance exchanges and cooperation, work together to prevent risks, and develop an AI governance framework based on broad consensus, to make AI technologies more secure, reliable, controllable, and equitable.”

The Council of Europe’s Framework Convention, discussed above, provides a comprehensive legal structure to protect human rights, democracy, and the rule of law, besides promoting innovation. This strikes a balance where the use of technology should not be limited but society must ensure that development is in the right direction—with most of the technologies promoting ethical usage.

The Convention offers a set of guidelines for the advancement of AI that include respecting human dignity and upholding the idea that one should not infringe upon the rights and liberties of others. There is a significant urge to pursue explainability, which requires an explanation for each decision an AI makes and highlights how these systems have the power to significantly impact people’s lives in fields like criminal justice and healthcare. Additionally, the Convention calls for fairness in the creation of AI by considering prejudice in learning systems.

The Convention clearly aspires to international cooperation, which is important because it is a central element of the liberal international order. Numerous states agreed to the treaty, realizing that artificial intelligence is not a local problem. Such collaboration is required since artificial intelligence affects all states, and its advantages and disadvantages can only be addressed jointly. The agreement’s openness to other parties is crucial because it enables people from different backgrounds and cultures to voice their thoughts, enhancing and leveling the playing field.

As AI advances, concerns will grow about the agreement’s direction, applicability, and resource allocation. It implies that ethically right deeds now might turn unethical as technology develops, highlighting the necessity of a progressive framework for a code of ethics.

Since the development of AI must be accompanied by its ethical application, the Convention on Artificial Intelligence represents an important accomplishment in European regulation of the technology. Therefore, this treaty serves as a guide for how human rights, accountability, and openness should be upheld when integrating AI into society. The journey has only just begun. However, the political will and spirit to act, observe, and adopt the proper approach to governance can serve to achieve the benefits of AI.

Nevertheless, it will probably be difficult to put these rules and policies into foolproof practice. It will certainly be a work in progress. The European Council is certainly providing a road map for managing global mutual technology advancement concerns.

Huma Rehman is Director of Research at the Islamabad Policy Institute (IPI) and a Defense & Foreign Affairs Analyst. The views expressed are her own.   

Paving the Ethical Route for AI was originally published on Global Security Review.

The recent surge in OSINT intake is driven by the exponential growth of digital information, the proliferation of social media, and the increasing availability of online data. These factors have expanded the volume and variety of accessible information, enabling intelligence agencies to glean valuable insights from a vast array of sources, ranging from news articles and social media posts to academic publications and government reports. However, this influx of data necessitates advanced tools and techniques to manage, analyze, and extract actionable intelligence efficiently.

Artificial Intelligence (AI) and Machine Learning (ML) applications are being implemented across the American intelligence community to enhance capabilities, resulting in a significant increase in OSINT intake. Managing this surge requires leveraging advanced technology, enhancing analytical capabilities, and ensuring efficient collaboration. AI and ML algorithms automate data collection, filtering, and initial analysis. The development of natural language processing (NLP) tools to process large volumes of text data in multiple languages will mature over time with appropriate investment. Additional investment in scalable big data platforms that can handle OSINT data will be critical, utilizing cloud-based solutions for storage and processing to ensure scalability and flexibility.

Human capital enhancement is crucial for any strategic intelligence strategy. There must be an increased focus on recruiting and developing specialized training for intelligence analysts in OSINT techniques, tools, and methodologies. Continuous education programs will keep analysts updated on the latest technologies and trends. Expanding hiring efforts to identify experts in data science, cybersecurity, linguistics, and regional studies will increase the talent pool capable of enhancing the analytical capabilities of the intelligence community. By fostering an environment that promotes continuous learning and expertise in emerging technologies, the intelligence community can stay ahead of adversaries and ensure that their analysts have the necessary skills to leverage advanced tools effectively.

Interagency collaboration within the American intelligence community and with trusted allies is vital. Creating joint OSINT task forces involving multiple agencies fosters collaboration and information sharing, leveraging unique capabilities and expertise. Developing standardized protocols and best practices for OSINT collection and analysis enhances situational awareness and reduces duplication of efforts.

By establishing clear lines of communication and cooperation, intelligence agencies can ensure a more unified approach to addressing emerging threats and challenges. This collaboration also extends to international partners, creating a robust intelligence-sharing network that provides a broader perspective and pools resources to counteract the strategic moves of adversaries.

From a strategic perspective, developing secure and user-friendly platforms for sharing OSINT findings across different agencies is essential. Implementing interoperable systems for seamless data exchange, supported by comprehensive policies and guidelines aligned with legal mandates, builds trust between agencies and the public. Ensuring the security and integrity of data and communication channels is paramount, as it protects classified information from cyber intrusions and ensures the resilience of supply chains and critical infrastructure against cyber threats. Enhanced cybersecurity measures are essential for maintaining the trust and operational effectiveness of intelligence operations.

Reversing concerns about the expanding influence of the technology industry is necessary for the defense industry and intelligence community to embrace a collaborative environment that encourages growth, innovation, and trust. The technology industry already has expertise in these domains, which can be leveraged for public-private partnerships to access cutting-edge innovations. By fostering partnerships, the intelligence community can benefit from rapid advancements in technology and stay ahead of emerging threats. Collaboration with the technology industry also provides access to a pool of highly skilled professionals who can contribute to enhancing the capabilities of intelligence agencies.

The intelligence community must embrace public-private partnerships to foster a collaborative environment that encourages innovation. Establishing feedback mechanisms, conducting regular reviews, and setting up innovation labs within intelligence agencies ensures they stay ahead of emerging threats. Feedback mechanisms can include regular debriefings, user surveys, and performance metrics to assess the effectiveness of OSINT strategies. Review processes might involve periodic audits, peer reviews, and after-action reports to identify gaps and areas for improvement. Innovation labs can foster a culture of experimentation and rapid prototyping of new technologies and methodologies. By creating a space for testing and developing new ideas, innovation labs can drive significant advancements in intelligence operations and ensure that agencies are equipped to handle evolving threats.

Continuous improvement and adaptation will be key to maintaining a competitive edge in a dynamic and ever-changing global threat landscape. Establishing feedback mechanisms to continually assess the effectiveness of OSINT strategies and make necessary adjustments is essential. Conducting regular reviews and audits to identify gaps and areas for improvement will ensure that the intelligence community remains agile and responsive to emerging threats and challenges. Enhancing all-source analytical techniques for integrating OSINT with other intelligence sources (HUMINT, SIGINT, etc.) will provide a comprehensive view of the intelligence landscape, bridging the knowledge and awareness gaps that often plague the intelligence community.

To further support these advancements, the intelligence community must also embrace public-private partnerships to leverage the technology industry’s expertise and foster a collaborative environment that encourages innovation. Establishing feedback mechanisms, conducting regular reviews, and setting up innovation labs within intelligence agencies will ensure they stay ahead of emerging threats and challenges. By fostering a culture of experimentation and rapid prototyping, innovation labs can drive significant advancements in intelligence operations and ensure that agencies are equipped to handle evolving threats.

Managing the surge in OSINT requires a holistic approach that combines technological innovation, enhanced human capital, effective interagency collaboration, and robust policy frameworks. By adopting these strategies, the intelligence community can maintain its edge in an increasingly complex and dynamic world.

Joshua Thibert is a Senior Analyst at the National Institute for Deterrence Studies (NIDS). With nearly 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 risk management in the private sector. Views expressed are his own. 

AI Overload: Navigating the US Intelligence Community’s Data Deluge was originally published on Global Security Review.