Conference Presentation, Panel, Fireside Chat
International Security: Innovation, Investment, and Partnerships | Global Conference 2026
- Transformation of Warfare: The conflict in Ukraine has demonstrated a fundamental shift toward autonomous, low-cost, high-precision drone technologies (naval, air, and ground) that are effectively countering traditional, expensive assets like ships, tanks, and manned jet fighters.
- Strategic Implications: The panel argues the U.S. must pivot from investing in "antiquated systems" (estimated at hundreds of billions) to funding robotic solutions and AI-driven networks to secure the Indo-Pacific and Europe.
- Economic Efficiency: Eric Schmidt highlights a "kill ratio" efficiency gap where U.S. tech companies can produce interceptors (e.g., $10,000 list price) that are significantly cheaper than adversary equivalents (e.g., $30,000), contrasting with the Pentagon's historical preference for requesting increased budgets over optimizing existing spending.
- Fiscal Constraints: Representative Adam Smith notes that U.S. interest on the national debt now exceeds the entire defense budget, necessitating cost-effective solutions to meet deterrence needs without a $1.6 trillion defense budget.
- Acquisition Reform: The Senate passed the "SPEED Act" (Speed, Innovation, and Delivery for Defense Excellence) in a bipartisan manner to incentivize faster innovation and scale, though implementation still faces cultural resistance within the Pentagon.
- Alliance Partnerships: Senator Chris Coons advocates for "co-production" with allies (e.g., AUKUS members, Germany, Japan) to scale munition production and reduce barriers like ITARs and MTCRs, acknowledging the U.S. cannot build the defense industrial base alone.
- Competitive Environment: The panel observes that the entry of venture-funded small companies (e.g., Andral, Palantir, SpaceX) is forcing major defense primes (Lockheed, Boeing, Northrop) to innovate competitively rather than relying on monopolistic structures.
- AI and Agents: Eric Schmidt predicts the rise of "agentic" AI systems that can autonomously plan, execute tasks, and engage in scenario planning (reinforcement learning) to outperform human planners, necessitating U.S. leadership to prevent adversaries like China from gaining dominance.
- Talent Pipeline: The discussion identifies a need to shift workforce development away from traditional four-year degrees toward specific career and technical education (CTE) and problem-solving skills, citing programs like the "Hacking for Defense" initiative at Stanford as models.
- Cultural Barriers: A primary hurdle remains the Pentagon's bureaucratic culture, which treats software as maintenance rather than a primary asset, suffers from "color of money" accounting issues, and lacks the urgency required to match the pace of private sector AI development.
- Job Market Shifts: While the transition to automated warfare will require fewer traditional assembly jobs, the panel emphasizes the creation of new roles in software engineering, data science, and advanced manufacturing, warning against the fear of job loss in favor of reskilling.
- Legislative Focus: Senator Coons highlights recent successes in pushing for multi-year procurement authority for critical munitions and pressing the Pentagon to reduce total costs while expanding private sector investment partnerships.
- Deterrence Strategy: Representative Smith argues that technology should be leveraged to strengthen deterrence and avoid "escalate to de-escalate" postures, ensuring the U.S. possesses the capability to win conflicts rather than engaging in unnecessary combat.
- Future Risks: Senator Coons warns that the current 19th-century political decision-making framework is incompatible with 21st-century technological acceleration, creating risks of miscommunication and misunderstanding in a world where algorithmic deterrence becomes dominant.