Donald Trump’s stance on NATO, Ukraine and tariffs has significantly affected global politics and economic dynamics. This is one factor which has led to a notable shift in defence spending, particularly in AI.

• Global uncertainty and trade volatility under Trump-era policies have prompted nations to bolster defence capabilities, particularly through AI investment.
• Increased contributions to NATO’s civil, military, and security budgets have supported the development and deployment of advanced defence technologies.
• The US Department of Defense saw a nearly 1,200% increase in the value of AI-related federal contracts from 2022 to 2023. This reflects a strategic push for technological superiority.
• Previously hesitant tech firms are now embracing defence applications for their technologies, driven by both strategic relevance and commercial opportunity.
• There’s growing VC interest in defence-tech start-ups, accelerating innovation and expanding the ecosystem of AI-driven defence solutions.
• The UK government will shortly publish specific SME spending targets in addition to the recently announced SME Support Hub. This will offer greater support to businesses wishing to access the defence supply chain.

Given the landscape, it’s clear that the need for technology companies to engage with defence has never been greater. This is particularly true for those with innovative and novel capabilities powered by AI. The opportunity has never been greater either.

For more information on how technology is changing waste collection, read the original article on the HCR Law website.

If you need advice, contact me at +44 20 3824 9748 or fjennings@hcrlaw.com.