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The Digital Imperative: Transforming Defence in an Age of AI

By Derek Dobson | Partner, IBM Consulting Canada
August 28, 2025

The global security landscape is undergoing unprecedented change, characterized by the resurgence of strategic competition and the rapid proliferation of advanced technologies. The messaging from our government and others is clear: geopolitical uncertainty demands higher levels of readiness from military forces.  

Canada can no longer rely on its geography for security, as threats now transcend physical boundaries and operate at speeds that negate traditional advantages. This volatile environment coincides with the Information Age and the Fourth Industrial Revolution, where data availability and computing power are driving a fundamental shift in how societies and militaries operate. At the heart of this revolution is the Age of Artificial Intelligence (AI), encompassing machine learning (ML), computer vision (CV), optical character recognition (OCR), natural language processing (NLP), and generative AI, which are becoming ubiquitous across various sectors. 

New capabilities are being developed and fielded at an incredible pace, with AI and automation becoming integral to modern military operations. It is crucial for militaries to have access to these dual-use technologies, safely experiment with them, and establish robust frameworks for their ethical use. 

The Core of Transformation: Pan-Domain Operations and Decision Advantage 

Pan-Domain Operations (PDC2) represent a fundamental shift in military thinking and capability, moving beyond traditional domain-centric approaches. This concept integrates capabilities from force elements across all operational domains—air, land, sea, space, and cyber—as well as the information environment, to deliver coherent and synchronized effects. The goal is to optimize the Sense, Make Sense, Decide, Act (SMDA) decision cycle, enabling faster, more precise, and nuanced decision-making. AI and automation are pivotal in this, bringing together disparate data and processing it at speeds beyond human capacity to close the "sensor-to-effector loop". 

This transformation necessitates the ability to share data seamlessly between force elements across the joint force. Historically, the Canadian Armed Forces (CAF) has faced challenges with data access and analysis due to legacy systems and stove-piped development. Recognizing data as a strategic enterprise asset, the Department of National Defence (DND) and CAF are implementing a comprehensive data strategy to formalize data governance, enhance data quality, and provide tools for data discovery, analysis, and visualization. Initiatives like the Naval Integrated Data Environment, RCN Data Lake, and Data Quality Management Program aim to improve data confidence and enable data-driven decision-making. 

Furthermore, the joint force must be able to work effectively in a combined (multi-national) environment. Most CAF operations emphasize the critical need for "Day Zero Interoperability"—integration into partner networks and systems before operations commence to ensure seamless coordination and data exchange.NATO Allies are rapidly modernizing their defence capabilities, and the CAF must keep pace to remain a relevant and valued partner. Collaborative efforts include participation in exercises like STEADFAST DEFENDER and Project OLYMPUS, as well as intelligence sharing with Five Eyes and NATO partners. The RCAF, for example, is leveraging cloud-based command and control (CBC2) systems that integrate over 700 sensor feeds and use AI/ML to provide a common operational picture for NORAD, highlighting the importance of integrated capabilities with the US. 

Achieving this requires a new approach to data-centric security. Moving away from perimeter-based security, DND/CAF is adopting concepts like data-centric security (DCS) and zero-trust security to protect sensitive data across all networks and classification levels. This is critical given the risk of cyber intrusion and the need to operate securely in contested environments. IBM and our commercial partners offer advanced cybersecurity solutions leveraging AI for threat detection, response, and automation. 

AI is enabling leaders in every element of the force and at all levels to achieve decision advantage by processing and analyzing large amounts of information at high speed. The CAF Digital Campaign Plan explicitly states its vision for improved decision-making effectiveness, speed, and accuracy in both the corporate and battle spaces through digital transformation. Examples include the RCAF's CBC2 system, which uses AI/ML to identify threats and suggest courses of action, and the Royal Canadian Navy's (RCN) exploration of AI/ML for predictive maintenance and optimizing logistics and scheduling. AI also augments human cognition, allowing personnel to focus on higher-value tasks by automating routine processes. 

This capability needs to be robust enough to operate in Denied, Disrupted, Intermittent, and Low Bandwidth (DDIL) environments, secure from cyber attacks, and meet national requirements for sovereign control of data without impeding interoperability. Tactical edge solutions are being explored to maintain connectivity in extreme environments. While there are concerns about data sovereignty when utilizing allied infrastructure or commercial cloud for classified data, data fabrics help overcome silos across the joint force.  The importance of containerization and portability of AI services across hybrid architecture is implicitly recognized through the adoption of cloud capabilities and the desire for device agnosticism and open, interoperable designs. 

Accelerating Towards a Digital Future 

The urgency for Canada to digitally transform its defence capabilities cannot be overstated; failure to do so risks obsolescence and irrelevance to allies. While the CAF has initiated significant digital transformation efforts, including developing comprehensive strategies and conducting numerous pilot projects, progress has been slow.  

Fortunately, AI solutions and services are readily available to militaries from commercial cloud providers. Leveraging these industry innovations and adapting them to military needs is the catalyst Canada needs to ramp up its capacities. The focus must be on the development of applications and solutions that leverage data across a hybrid infrastructure environment, rather than simply porting old analog processes to digital platforms. 

Digital transformation is not a one-time event but an ongoing journey towards continuous digital innovation. It requires a cultural shift towards experimentation, agility, and a willingness to embrace change and calculated risks. By prioritizing digital transformation, resolving policy barriers, and fostering strong partnerships with industry and academia, the DND/CAF can enhance its operational advantage in the battle space, improve stewardship in the corporate space, and reimagine its workforce for the digital age, ensuring Canada remains a credible and capable force for national and international security. 

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