Written evidence submitted by the Ministry of Defence.
I welcome the Defence Sub-Committee’s inquiry “Developing Artificial Intelligence capacity and expertise in UK Defence”. AI technologies have enormous potential to transform every aspect of Defence activities, from the back office to the front line. The rapid, safe and responsible development and adoption of these game-changing technologies is therefore a key strategic priority for the MOD. As you will be aware, we set out our overall goals, vision and approach through the Defence AI Strategy (2022), highlighting the critical importance of developing strong collaborative relationships with partners across the UK’s AI ecosystem. I am pleased to submit the following written evidence in response to the Sub-Committee’s questions.
How clearly has the Ministry of Defence set out its priorities for the kind of
AI capacity and expertise it believes the UK defence sector should have, what priorities has it identified, and are these deliverable?
- The Ministry of Defence (MOD) works closely with partners across UK industry and academia to ensure that we have access to the cutting-edge skills, capabilities and systemic capacity necessary to modernise and sustain the UK armed forces. In particular, the UK’s thriving technology sector is a national asset, with world leading capabilities in many areas that are relevant for Defence. Through the Defence AI Strategy (2022)[1] we set out our intent to forge a more dynamic and integrated partnership with this sector, seeking to address barriers to frictionless collaboration, incentivise engagement and co-creation, and broaden our reach into sectors of the
economy that may not have previously considered working with the MOD. More generally, as set out in the Defence Command Paper Refresh (DCPR, 2023),[2] we are working to ensure that the UK’s defence industry is geared and incentivised to accelerate the development of new technologies with potential military applications, while also exploring ways to increase productivity and supply chain modernisation through investment in digitisation, automation and skills.
- We recognise that our partners in industry and academia require clear demand signals to plan against and ensure that their businesses and programmes are effectively structured to support Defence requirements and priority national objectives. Given the breadth of Defence business and the complexity of our operating domains, it is necessary to communicate our requirements, intent, and expectations in a number of different ways.
- At a strategic pan-Defence level, the MOD signals its overall ambition and intent for the adoption of new technologies through publications such as the DCPR and the Integrated Operating Concept (2022).[3] R&D priorities for AI and other technologies are set out through the Defence Technology Framework (2019),[4] Areas of Research Interest (annual),[5] the MOD S&T Strategy (2020)[6] and, of course, the Defence AI Strategy. We engage directly with partners in industry and academia through established channels like the Defence Suppliers Forum and are establishing a Defence and Security AI Ecosystem through the Defence AI Centre (DAIC). We also communicate more tactical requirements through specific channels, such as Hackathons sponsored by the DAIC or regular themed Innovation Calls through the Defence and Security Accelerator (DASA). We will continue to build on these engagement pathways, working with government partners and – where appropriate – international partners, to communicate a scaled demand signal to encourage civil sector investment in defence-relevant AI R&D.
- Defence’s overall objectives and ‘Priority Outcomes through AI’ were set out in the Defence AI Strategy. These outcomes were developed in consultation with industry stakeholders to provide broad guidance, noting the extremely broad range of potential use cases for AI within Defence. They are:
- Decision Advantage – increase operational tempo and agility through better-informed and distributed decision-making and machine-speed responses to threats;
- Efficiency – improve flexibility, productivity and availability through intelligent automation;
- Unlock New Capabilities – secure operational advantage by developing novel ways to operate, deliver enhanced military effect and protect our people from harm;
- Empower the Whole Force – reduce burdens and focus human talents on higher value functions requiring ingenuity, contextual thinking and judgement.
- These high-level priorities are fleshed out through the Defence AI Playbook that was recently launched at the DAIC Connect industry event. The Playbook provides an overview of the areas in which AI could be applied within Defence, dividing the problem space into six broad categories for AI capacity:
- Recognise – detecting subjects of interest by matching patterns in the vast volumes of sensor data that the MOD collects;
- Comprehend – deriving insight from unstructured and semi-structured datasets;
- Predict – anticipating likely outcomes of future events, based on historic data;
- Simulate – running scenarios and generating data to inform planning, including alternative courses of action;
- Generate – creating new and original content from the patterns and structures within existing data;
- Decide – creating autonomous or automated behaviours by selecting the actions to achieve a goal.
- In addition to the overview provided by the Playbook, the DAIC also plays an important facilitating role, holding regular engagement events which bring together MOD teams and a wide variety of Industry Stakeholders. As examples:
- DAIC Connect (November 2023) provided an opportunity for representatives from over 70 companies to learn about Defence requirements and network with senior staff and AI teams from across Defence to share how their innovations can enhance Defence’s current and future capabilities. The first of these events targeted small and medium sized enterprises (SMEs); planning for the next
DAIC Connect event is underway.
- Every 18 months, the Defence Science & Technology Laboratory (Dstl) and the DAIC host AI Fest to bring together the AI community across government, industry, academia and international partners. At these events, world-leading experts share their experiences, including the challenges of military adoption of AI, and discuss how to build an effective AI capability for the UK Defence sector. AI Fest was last run in April 2023 on a theme of Human Centric AI, featuring over 1000 AI experts, 40 stands, and 30 expert speakers across two days at Exeter University.
- The Dstl AI Programme has also held several events to inform potential suppliers of Defence research funding priorities, including AI technology areas of interest. Examples include the Supercharging Science supplier event and the Dstl searchlight webinars and events designed to help small and medium-sized enterprises work with the Defence sector.
- Individual Front Line Commands (FLCs), Top Level Budget (TLB) organisations and Enabling Organisations are responsible for developing and owning their own plans for AI-enabled capability and services.[7] These plans align with the overall ambition set out in the ‘Priority Outcomes for AI in Defence’ set out above and are maturing rapidly as Defence AI Strategy implementation proceeds.
- Finally, the MOD is preparing a Joint Service Publication (JSP936) on ‘dependable AI’ which will set out the overall policy and procedural framework that Defence AI programmes (both internal developments and those developed by suppliers) will need to work within. This will include guidance on legal and ethical considerations, risk frameworks and quality & assurance arrangements.
What strengths and expertise does UK industry currently have in the field of Artificial Intelligence with defence applications?
- As noted in the National AI Strategy,[8] the UK is recognised as a thriving, world-class centre for tech start-ups, research, innovation, and digital industries, and as a top tier global power in AI. Areas of particular strength for UK industry include fintech, biotech, digital marketing & advertising, and security. The UK’s position as a global AI leader is further strengthened by our respected legal system, well-developed regulatory approaches, and influential Government bodies such as the Centre for Data Ethics and Innovation.
- Most new and emerging technologies like AI are inherently dual use; Defence exploits the same fundamental technologies that could be developed for civilian applications. Defence applications for AI stretch from the corporate or business space to the frontline, enhancing capabilities right across Defence. The broad range of potential applications include helping enhance the speed and efficiency of business processes and support functions; increasing the quality of decision-making and tempo of operations; improving the security and resilience of interconnected networks; enhancing the mass, persistence, reach, and effectiveness of our military forces; and protecting our people from harm by automating ‘dull, dirty, and dangerous’ tasks. The UK’s AI sector is well placed to support the development of game-changing solutions and capabilities across these use cases.
- The strengths and expertise of UK industry were recently demonstrated by the Defence and Security Accelerator (DASA) Innovation Focus Area, which attracted proposals from a range of organisations, including small and medium sized enterprises. Funded projects included proposals to automate change analysis from synthetic aperture RADAR measurements, capture and exploit data from operational radio traffic, derive economic insight using AI, and use Large Language Models to translate outputs from complex computer models of warfare into a simple narrative.
- The UK’s higher education system strengthens industry by nurturing a diverse skills-base, attracting elite global talent and spinning out countless innovative start-ups, complemented by a network of centres of excellence, innovation catapults and business accelerators, including the Alan Turing Institute, the Digital Catapult, Hartree Centre, Centres of Doctoral Training and Digital Research Infrastructures. Expertise on issues like AI ethics and safety is provided by organisations such as the Ada Lovelace Institute, Cambridge University’s Centre for the Study of Existential Risk and Leverhulme Centre for the Future of Intelligence, the Centre for Long-Term Resilience and Oxford University’s Centre for the Governance of AI.
How can the UK Government best develop capacity and expertise within domestic industry in sectors such as engineering and software to support the development and delivery of Artificial Intelligence applications in defence?
- In March 2023, the UK Science and Technology Framework identified AI as one of five strategic technologies that will be critical to the nation’s future security, prosperity and global influence (along with Quantum, Engineering Biology, Future Telecommunications, and Semiconductors).[9] The Department for Science and Technology (DSIT) is leading cross-cutting initiatives to implement the Framework and enhance domestic abilities to develop, incubate and exploit these technologies. This includes ambitious national strategies to catalyse the ecosystem and set clear demand signals for innovation, leveraging government’s buying power to support economic growth, and crucial interventions to strengthen the UK's skills base. This national effort will also help to ensure that technology issues are treated coherently, conscious of synergies and interdependencies at all levels of the technology stack and across UK technology sectors.
- The MOD closely supports these initiatives, working with partners across government to ensure that Defence interests and requirements are understood and that the Department can access the talent, innovations and industrial capacity that are critical to the development of future military capabilities. This is particularly important for challenges that can only be properly addressed at a national level by exercising all the levers available across government, such as critical skills shortages. However, there are also some areas where Defence’s unique requirements and operating context may necessitate slightly divergent approaches. For example, we strongly support the proposal set out in DSIT’s AI Regulation White Paper (August 2023)[10] for a pro-innovation, sector-specific approach to AI regulation that encourages consistency while recognising that a one size-fits-all regulatory framework could unintentionally frustrate or constrain R&D in some sectors.
- As highlighted above, the MOD’s overall approach and objectives for AI were set out through the Defence AI Strategy and the DCPR. As part of a wider programme to develop a digital response to the Defence and Security Industrial Strategy (2021)[11] for the Defence Technology (‘DefTech‘) sector, we are developing more sophisticated and strategic relationships across the UK technology sector; driving research, supporting skills and professional development, promoting innovation, and encouraging joint investment to develop and sustain the industrial capability Defence needs, including through export and international collaboration opportunities. In respect of AI, much of this work is driven through the Defence S&T Portfolio or through the Defence AI Centre. As examples:
- Funding to develop talent: in 2022/23 Dstl spent £489 million on extra-mural S&T research across the whole of its research base through a diverse supplier base of industrial and academic partners and estimates that up to 10,000 jobs are supported by the programme funding.
- Increasing industry engagement: the MOD is actively seeking to broaden collaborations across the UK AI industry, particularly with Small and Medium-sized Enterprises (SMEs) and companies that may not have previously considered working with Defence. This includes through establishment of a new Defence and Security AI ecosystem, attendance at major industry events such as the annual UK AI Summit and delivering MOD-run events like ‘AI Fest’, ‘DAIC Connect’ and themed hackathons.
- Partnering with Big Tech: recognising that talent in areas like AI, software development and related engineering disciplines is in very high demand, the MOD actively partners with major technology companies like Microsoft and Google to access key skills, enable greater AI and Data Science research collaboration and help us to broaden our supply chain ecosystems.
- Seeking out talent: regional hubs such as the new Dstl AI and Data Science campus in Newcastle are important to increase our geographic reach and harness the skills of scientists, engineers, and academics across the country to develop cutting edge data science and AI to support our national security.
- Establishing ways of working to implement AI ethics principles: the MOD is currently carrying out a survey on AI Ethics Implementation in the Defence Industry to understand from the participants how the five MOD AI Ethics principles are already being met; either through existing engineering processes or
governance structures, what the barriers might be and how we can address them. This builds on earlier work in partnership with Team Defence Information, which consulted 70 industry experts over several months to provide an industry perspective on AI production models and associated Assurance regimes. Analysis from these and further industry engagements will inform our Dependable AI Joint Services Publication later in the year.
- Reducing barriers to entry for SMEs: by leveraging initiatives developed by CommercialX including simplified Terms and Conditions, establishing commercial routes to market focused on exploiting dual-use capability, and developing eco-systems of non-traditional Defence SMEs, we are making Defence easier to do business with and increasing our engagement with niche and innovative suppliers.
What can the Government do to help embed UK AI companies in defence supply chains, both domestically and internationally?
- Consultations with partners across the UK AI sector have highlighted the following key factors to incentivising engagement and co-creation with UK AI companies:
- Understanding and reflecting market forces: Defence must understand – and be seen to understand – the market forces and processes which incentivise companies in the AI sector. Having consulted with a range of AI stakeholders, the MOD is building a dedicated industry engagement team within the DAIC. Since the launch of the Defence AI Strategy, the DAIC have run a number of engagements, alongside working with existing initiatives such as CommercialX and the Defence and Security Accelerator, to help the MOD become increasingly attuned to the AI needs of our industry and academic partners.
- Talent exchange: Defence must strengthen links with UK universities, providing clear information for the benefit of academics interested in working with us on issues like information handling. The MOD and Dstl are strategic partners in the Defence and security research programme run by the Alan Turing Institute who conduct world leading research in a wide number of areas related to Defence’s needs. We also partner with the AI Council and other stakeholders and forums to communicate a better appreciation of our skills requirements from the AI industry and Tech Sector generally, while holding competitions and hackathons to identify and attract emerging talent.
- Simplifying access to Defence assets: the MOD must take steps to unlock Defence data in line with Government’s wider approach set out in the National Data Strategy.[12] The Digital Strategy for Defence[13] outlines how the Defence Digital Function will enable seamless access to our data by delivering a secure, singular, modern Digital Backbone. With continued investment a modern Digital
Backbone will deliver data-driven, interconnected digital systems that integrate across domains, partners, allies and suppliers. Effective management, coherence and standardisation of data pan- Defence is central to the success of the Digital Backbone and a critical enabler of Multi-Domain Integration.
- Open system architectures: the MOD must champion open systems architectures to provide opportunities for AI companies to contribute to our Defence objectives, avoiding vendor lock-in and allowing the best AI within our often-complex military systems.
- Promoting co-creation: Defence must increasingly diffuse our world-class technical expertise into specialist regional co-creation spaces across the UK to enhance engagement and collaboration with the AI sector, drive prosperity and support Levelling Up and the Union. One example of this is the new Dstl AI and Data Science campus based at the National Innovation Centre for Data in Newcastle, opening new local opportunities for individuals and institutions to work with defence.
- Business support services: the MOD should help AI companies access trusted sources of business development advice, equity finance and investment, through programmes like the Defence Technology Exploitation Programme and Defence Supply Chain Development; while exploring options to expand the Defence and Security Accelerator’s Access to Mentoring and Finance service to provide greater support for small-to-medium sized AI companies. In addition, the MOD has:
- Created CommercialX to disrupt traditional procurement processes to drive end-to-end fast-paced acquisition of innovative capability into defence. CommercialX specifically targets Small and Medium-sized Enterprises (SMEs) to reduce the barriers to entry. Small businesses are a vital part of the UK AI ecosystem, so this initiative is a critical enabler to bring AI into defence faster. CommercialX has already implemented a simplified set of terms and conditions specifically for SMEs and are challenging MOD procurement process to be more agile and less risk averse.
- Utilised Dstl Commercial to support and engage with industry partners. To ensure that the supply chain is accessible, Dstl are approaching the market using a category management market facing process, meaning that the contracting method will be more reflective of the market sectors and organisation with whom Dstl are dealing. In addition, Dstl runs a series of Searchlight webinars, which have previously included AI, designed to help SMEs work with the defence sector by explaining funding priorities and areas of interest.
- Championed enhanced global market access for the UK AI sector so that innovative UK tech companies can secure that growth capital and consumer scale necessary to compete internationally. On behalf of UK industry, the MOD, through its membership of the U.S. National Technology and Industrial Base (NTIB), is working closely with partners in the US Department of Defence, the Department of Defence of Australia, the Department of National Defence of Canada, to strengthen and build resilience in our respective industrial bases, enhance innovation and reduce barriers to the flow of knowledge, goods and services.
How can the UK Government ensure that it champions the UK AI sector in the context of Pillar 2 of the AUKUS Partnership?
- AUKUS Pillar II provides the UK Government an opportunity to enable international partners to access and purchase world-leading capabilities within the UK's AI sector. Through joint development and experimentation with AUKUS partners, the MOD has demonstrated the strength of UK industry capabilities to our trilateral partners. Under AUKUS Pillar II, the UK Government, in collaboration with our trilateral partners, has created new channels through which we can champion the UK AI sector.
- The UK is collaborating with its AUKUS partners to deliver AI algorithms and machine learning to enhance force protection, precision targeting, and intelligence, surveillance, and reconnaissance. This effort builds on joint work demonstrated in the UK in April 2023 and in South Australia in October 2023. The AUKUS nations aim to integrate Resilient and Autonomous Artificial Intelligence Technologies (RAAIT) into national programs in 2024, to pursue the rapid adoption of these technologies across land and maritime domains. This is an ambitious trilateral programme of work which clearly demonstrates the UK’s commitment to championing the AI sector. In 2024, the MOD will convene the AUKUS Industry Forum, which will bring together trilateral government and industry representatives to help inform policy, technical and commercial frameworks.
- There is already significant UK industry contribution to AUKUS AI initiatives, through both the AI & Autonomy and the Undersea Warfare Working Groups, including support to trials with AUKUS partners. The AI & Autonomy Working Group has delivered multiple AUKUS trials with the support of UK SMEs capabilities. By testing UK industry offerings alongside those of our AUKUS partners, the MOD has been able to demonstrate some of the unique strengths of the UK AI sector. The Undersea Warfare Working Group has worked in partnership with industry across all three nations to develop algorithms that have recently been used to process data on US Maritime Patrol Aircraft for the first time.
- As AUKUS Pillar II continues to develop, the MOD and its partners will be seeking greater engagement from industry to support AI and other advanced capabilities. The Defence Ministers Meeting held on 1 December 2023 endorsed a range of announcements and initiatives which seek to continue our commitment to streamlining defence trade controls and information-sharing while minimising policy and financial barriers across public and private sectors. The meeting announced the creation of new mechanisms like the AUKUS Advanced Capabilities Industry Forum and AUKUS Defence Investors Network, which will facilitate cooperation between government and UK industry in crucial sectors like AI. The announcement of the Defence Trade and Industrial Base Collaboration initiative will further increase private-sector cooperation across the AUKUS partners in emerging technologies and strengthen resiliency across our supply chains.
- We are backing up this intent by working with industry to promote and facilitate AUKUS opportunities. To date there has been significant outreach from the UK Government with national industry, including through a series of classified briefing sessions providing direct access to government decision makers and delivery teams across the priority areas of engagement under Pillar II. This year, an AI and Autonomy classified brief was delivered to UK suppliers through the Capability Management International & Innovation (CMI&I). This built on the collaboration the AUKUS AI & Autonomy Working Group had already conducted with UK industry in support of the inaugural AUKUS AI and autonomy trial that was supported by two UK industry partners. It also provided an opportunity for two-way communication on capability priorities and readiness of the sector to respond. These sessions have been incredibly valuable, covering a range of issues from sovereignty and IP protection to production capacity and cooperation. UK Defence Solutions Centre are supporting the UK MOD on our sustained effort to build awareness across key sectors.
I am grateful to the Committee for its interest in this important subject. It is essential that Defence is able to work seamlessly with the brightest and the best minds across the UK AI sector to realise our ambitions to modernise and transform the UK Armed Forces at pace and scale. I look forward to reading the conclusions and recommendations from the Committee’s Inquiry, though please do let me know if you require more information about any of the themes that I have set out in this letter.
I look forward to hearing from you as the inquiry progresses.
2nd February 2024