AI on Drones: A New Edge in Warfare

A NATO-backed startup, Scaleout Systems, is at the forefront of integrating artificial intelligence into small military drones. Originally founded in 2018 by Uppsala University researchers, the company pivoted to defense applications following Russia's full-scale invasion of Ukraine in 2022.

Scaleout Systems focuses on developing leaner AI models capable of running on edge hardware, such as drone onboard computers or field command posts. This approach ensures operational effectiveness even with limited computational resources. Their work is part of NATO's DIANA Challenge Program, specifically the Federated Aerial Intelligence for Recon project.

This AI integration aids drone operators in target identification and data analysis. The system intermittently shares selective updates, enabling decentralized retraining of AI models with aggregated battlefield data. This federated learning strategy allows models to adapt to diverse environments and continuously improve their performance.

The technology offers a critical advantage by allowing AI models to operate independently of centralized servers, a significant benefit in contested electronic warfare environments. Scaleout Systems has demonstrated this capability in live exercises, including a public demonstration in Sweden and participation in the BAE Systems Bofors ALMA project for an autonomous kamikaze drone.

Further testing occurred in June at a Swedish Air Force base, proving the AI's ability to perform inference and active-learning processes even when disconnected from central nodes. This decentralized learning model has the potential to scale across NATO member states, fostering collaboration and a shared strategic advantage.