The military lacks the "creative destruction" of the private sector and is constrained by rigid institutional boundaries. Real technological change, like AI adoption, can only happen when intense civilian leaders pair with open-minded military counterparts to form a powerful coalition for change.

Related Insights

The Ukrainian conflict demonstrates the power of a fast, iterative cycle: deploy technology, see if it works, and adapt quickly. This agile approach, common in startups but alien to traditional defense, is essential for the U.S. to maintain its technological edge and avoid being outpaced.

The critical national security risk for the U.S. isn't failing to invent frontier AI, but failing to integrate it. Like the French who invented the tank but lost to Germany's superior "Blitzkrieg" doctrine, the U.S. could lose its lead through slow operational adoption by its military and intelligence agencies.

Unlike nuclear energy or the space race where government was the primary funder, AI development is almost exclusively led by the private sector. This creates a novel challenge for national security agencies trying to adopt and integrate the technology.

AI is a 'hands-on revolution,' not a technological shift like the cloud that can be delegated to an IT department. To lead effectively, executives (including non-technical ones) must personally use AI tools. This direct experience is essential for understanding AI's potential and guiding teams through transformation.

Luckey reveals that Anduril prioritized institutional engagement over engineering in its early days, initially hiring more lawyers and lobbyists. The biggest challenge wasn't building the technology, but convincing the Department of Defense and political stakeholders to believe in a new procurement model, proving that shaping the system is a prerequisite for success.

Navigating technological upheaval requires the same crisis management skills as operating in a conflict zone: rapid pivoting, complex scenario planning, and aligning stakeholders (like donors or investors) around a new, high-risk strategy. The core challenges are surprisingly similar.

The Department of Defense (DoD) doesn't need a "wake-up call" about AI's importance; it needs to "get out of bed." The critical failure is not a lack of awareness but deep-seated institutional inertia that prevents the urgent action and implementation required to build capability.

The defense procurement system was built when technology platforms lasted for decades, prioritizing getting it perfect over getting it fast. This risk-averse model is now a liability in an era of rapid innovation, as it stifles the experimentation and failure necessary for speed.

Relying solely on grassroots employee experimentation with AI is insufficient for transformation. Leadership must provide a top-down motion with resource allocation, budget, and permission for teams to fundamentally change workflows. This dual approach bridges the gap from experimentation to scale.

The most significant hurdle for businesses adopting revenue-driving AI is often internal resistance from senior leaders. Their fear, lack of understanding, or refusal to experiment can hold the entire organization back from crucial innovation.