A strategic global move for Shield AI

Shield AI opens international sales office in Abu Dhabi

San Diego-headquartered AI and robotics defence systems startup Shield AI announced the opening of a new Abu Dhabi office this week, to drive international operations. Of course, there are AI-related companies opening up offices in the region all the time these days, and so it's perhaps not surprising that the news of yet another company - little known outside of the US defence sector - has so far received relatively little media attention. However, it's noteworthy, because Shield AI is primarily a software developer and one of a growing number of startups that are trying to disrupt the defence sector, innovating for military customers in ways that challenge the sector's long established contractors.

Formed to develop autonomous technology for US military aircraft, Shield AI's Hivemind software platform allows military customers to manage a variety of unmanned aircraft systems (UAS) enabling autonomous navigation, intelligent teaming and swarming. The platform equips unmanned systems with the intelligence to read and react to their environment, giving them the ability to complete tasks autonomously.

Shield AI's choice of location is strategic. Abu Dhabi is a growing defence production hub at the centre of one of the world's largest defence markets - and, of course, the home of IDEX, the largest defence exhibition and conference in the Middle East. The UAE itself spent about $20 billion on defence in 2020, while its neighbour - the third largest defence buyer in the world - Saudi Arabia spent about $48.5 billion in the same year. Whilst it's true that the GCC states ideally want to cut 50% of their military spending by 2030, it is also true that they have aggressive plans to develop more military production at home. Saudi Arabia alone plans to invest more than $20 billion in its domestic military industry by 2030.

One of the fastest growing defence production segments is that of military drones and Middle East investors are keen to invest in local production. Defence departments in the region are increasingly prioritising UAVs (unmanned aerial vehicles), changing both investment and battlefield strategies in the process. Due to the relatively low capital expenditure required, UAV / UAS (unmanned aircraft systems) present an affordable area for local defence companies to expand production. For example, Abu Dhabi defence conglomerate Edge Group, demonstrated half a dozen new prototypes for vertical take-off and landing (VTOL) drones of various sizes over the past 18 months.

So, aside from providing a location conveniently located between African, Asian and European markets, Shield AI's Abu Dhabi operation positions the company well as a potential partner for GCC UAV developers, investors and potential defence customers. This could be a significant win for both the region's military drone business and their customers.

Find out more about this story:

• Read the FT's recent report on Shield AI.

• Check out my Linkedin post on this announcement.

• Visit the Shield AI website.

• Read my recent roundup of the Middle East military drone market (Linkedin)