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BAE Systems bolsters UK defense with strategic AI partnership

Michael Hill | 08/12/2025

BAE Systems is seeking to bolster UK defense with a new artificial intelligence (AI) partnership. BAE Systems has made a strategic investment in Oxford Dynamics as part of its ongoing drive to identify and harness innovative AI technologies for rapid deployment.

The collaboration will see BAE Systems combine its defense and security knowledge with Oxford Dynamics’ AI driven data expertise to explore ways to deliver next generation advantages to the UK and its allies across all domains of the modern battlespace spanning air, land, sea, space and cyber.

Founded in 2020, Oxford Dynamics, develops intelligent autonomous systems that collaborate to interpret data, coordinate action and make real-time decisions. Its technology is designed to help defense and security organizations improve mission planning and respond to threats faster.

Enhancing security and defense with AI

The first stage of this work will embed the Oxfordshire-based company’s AI technology into BAE Systems’ Prophesea platform, a digital solution that enables defense organizations to maintain operational readiness of critical assets such as warships, armored vehicles and combat aircraft, according to a press release.

In the longer term, the collaboration will enable the integration of Oxford Dynamics’ capabilities across BAE Systems’ extensive portfolio. This will deliver sovereign, AI-enabled real time capability, empowering UK and allied forces with rapid decision-making support, operational autonomy and greater resilience in contested environments.

“The landscape of warfare is rapidly evolving and embracing emerging technology is vital to keeping the UK safe,” said Andrea Thompson, group managing director of BAE Systems’ digital intelligence business. “By working with companies such as Oxford Dynamics, we can help ensure that the nation is ready to unlock the advantages that innovation brings and help strengthen the UK’s sovereign defense and security landscape.”

The equity stake BAE Systems has taken in Oxford Dynamics, which will remain an independent entity, will support its next phase of growth, contributing to the UK Government’s ambition to bolster the nation’s defense industry and create skilled jobs.

“Our shared mission at Oxford Dynamics is to bring trusted AI to the front line and working with BAE Systems gives us the platform to quickly scale our technology into systems that will make a real difference to our armed forces,” added Dr Edward Jackson, Oxford Dynamics.

How AI is transforming warfare

AI is transforming modern military strategies, according to a recent research report. The report examines how AI is changing the way military operations function, from automating routine tasks to strengthening cyber security and optimizing combat strategies. According to the study, the North American AI in military sector is expanding as defense forces adopt cutting-edge AI systems.

AI is also revolutionizing military intelligence by analyzing vast amounts of real-time data, improving threat detection and enhancing decision-making. AI-driven cyber security solutions are playing an equally vital role, protecting sensitive military networks from an increasing number of cyber threats.

As AI becomes embedded in military strategies, defense agencies are increasingly partnering with private companies to drive innovation. Startups like Anduril Industries are attracting significant venture capital to develop autonomous weaponry and AI-driven defense technologies, giving military forces the technological edge they need in modern conflicts, reported the Wall Street Journal.

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