Brian Schimpf, co-founder and CEO of Anduril Industries, discusses lessons from the Ukraine war shaping his company's strategy, changing Pentagon acquisitions, managing supply chains and partnering with major contractors, DoD's approach to AI in autonomous systems, and the company's growth prospects.
Arming and supporting partners and allies is crucial, but providing suitable systems is a challenge.
Defense procurement is shifting towards innovative companies that can reduce costs and accelerate system fielding.
Deep dives
Lessons from the war in Ukraine
The war in Ukraine has served as a laboratory for testing autonomous surveillance and strike systems, prompting the US Department of Defense to send teams to study the tactics used. The main lesson learned is the importance of arming and supporting partners and allies to defend their own interests. However, the challenge lies in providing the right systems to allies, as the US tends to invest in higher-end systems that may not be suitable for partner nations. Another important trend is the shift towards smaller, more autonomous and independent forces due to the difficulty of defending large massing and critical infrastructure targets. This trend highlights the need for lower-level units to have the capability to run information and ISR systems independently.
The changing landscape of defense procurement
A major shift is taking place in defense procurement, favoring companies that are willing to invest their own resources to develop systems and deliver them to the government and allies. The traditional model, which rewards companies with deep pockets and often leads to delays and high costs, is starting to change. The government is now showing more openness to working with new entrants and embracing novel technologies that can significantly reduce costs and accelerate the fielding of systems. While the change may take time to fully permeate the system, there is a growing recognition that innovative companies can bring new ideas and valuable capabilities to the defense industry.
Scaling and supply chain management
Scaling and supply chain management are critical factors in successfully delivering defense systems. Rather than relying solely on vertical integration, companies can take advantage of the commercial industrial base and leverage existing technology and components. By working with commercial suppliers and taking advantage of their expertise and capabilities, companies can ramp up production and deliver systems more quickly. Additionally, embracing low-cost systems and finding ways to adopt new technologies and innovation can help drive down costs, increase flexibility, and accelerate fielding timelines. Collaboration and partnerships with established players in the defense industry can also lead to mutually beneficial arrangements and facilitate the adoption of new technologies.
Navigating the ethical and practical challenges of AI
Artificial Intelligence (AI) holds tremendous potential for advancing autonomous systems, but it also poses ethical and practical challenges. The US has been investing in AI technologies and weapon systems, and has existing policy frameworks to ensure responsible and accountable use. The challenge lies in keeping up with the rapid pace of AI development and adopting new technologies in a timely manner. The US aims to balance predictability and human agency in the operation of AI-enabled systems, allowing for defensive autonomy while maintaining a high bar for offensive applications. The goal is to harness the power of AI for precision, accuracy, and increased situational awareness while adhering to ethical guidelines.
On this episode of the DefAero Report Daily Podcast, sponsored by Bell, Brian Schimpf, co-founder and CEO of Anduril Industries, discusses lessons from the Ukraine war that are shaping his company’s strategy, how the Pentagon is changing the way it acquires capabilities, how the company is managing its supply chains to ensure responsiveness on demand and at scale, partnering with major contractors, DoD’s approach to the artificial intelligence that’s critical to increasingly autonomous systems, and a look ahead at the company’s growth prospects with Defense & Aerospace Report Editor Vago Muradian.
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