How Indian Defence Companies Are Harnessing AI for Modern Warfare!
DSIJ Intelligence-6 / 10 Sep 2025/ Categories: General, Knowledge, Trending

AI adoption by Indian defence companies is transforming the nation’s military capabilities.
Artificial Intelligence (AI) is revolutionizing defence globally, and India is rapidly advancing in this domain. With the government’s push through Atmanirbhar Bharat and initiatives like iDEX (Innovation for Defence Excellence), listed Indian defence companies are leveraging AI to strengthen national security and modernize warfare capabilities. From autonomous drones to predictive maintenance systems, AI is redefining how India’s defence forces operate.
Major Defence PSUs Leading AI Integration
Bharat Electronics Limited (BEL)
BEL is spearheading AI adoption with the establishment of an AI Incubation Centre in collaboration with the Indian Army. Its innovations include:
- AI-enabled Voice Analysis Software (AIVAS) for advanced speech transcription and monitoring
- Sandarbh.AI, a document management system for the Indian Navy
- AI-based predictive maintenance for fire control systems
Hindustan Aeronautics Limited (HAL)
HAL has embedded AI in aerospace systems:
- Combat Air Teaming System (CATS), where AI enables drones to follow voice commands from fighter jets
- AI-based Snag Disposition System for automated aircraft defect detection
- AI-enhanced maintenance and carbon recognition tools for aircraft parts
Private Sector Leaders in Defence AI
Data Patterns (India) Limited
This Chennai-based firm integrates AI in radar and avionics, developing object detection tools for surveillance and partnering with DRDO and ISRO on advanced AI-enabled systems.
Zen Technologies Limited
Zen is a pioneer in AI-driven anti-drone systems, using machine learning for detection and neutralization. Its combat simulation platforms also employ AI for realistic battlefield training.
Paras Defence and Space Technologies
Paras has invested in Logic Fruit Technologies to enhance AI-driven embedded solutions. It has launched PARAS.AI for drone data analysis and is working on AI-powered radar and electronic warfare systems.
MTAR Technologies
Known for precision engineering, MTAR is integrating AI in manufacturing processes and AI-driven quality control through collaborations with global defence firms.
Emerging AI Defence Players
- Solar Industries: Creator of Bhargavastra Counter-UAV system, AI-powered smart mines, and drones.
- DCX Systems: Focused on AI-based electronic warfare and surveillance systems.
- Avantel Limited: Developing AI-enhanced satellite communications and software-defined radios.
Government and DRDO Initiatives
The Defence Research and Development Organisation (DRDO), through its Centre for Artificial Intelligence and Robotics (CAIR), has developed over 75 AI-based defence products, covering autonomous platforms, cybersecurity, and surveillance. Additionally, the Indian Army’s AI Incubation Centre with BEL supports indigenous innovation in AI-driven systems.
Market Outlook
India has allocated Rs 100 crore annually for AI in military projects, backed by a Rs 6.81 lakh crore defence budget for 2025-26. With over 1,000 defence-tech startups in AI, the sector is poised for exponential growth.
Conclusion
AI adoption by Indian defence companies is transforming the nation’s military capabilities. From PSUs like BEL and HAL to private innovators such as Zen Technologies and Paras Defence, these listed companies are driving self-reliance and ensuring India’s preparedness for future warfare. The integration of AI not only boosts national security but also opens significant opportunities for investors in this rapidly evolving sector.