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A boom in the U.S. defense budget is expected to accelerate AI, robotics and military innovation, panel says
Charlotte Economics Club president Michael Blanco (left) led a discussion on defense spending with (left to right) Jeff Harrick of Huntington Bank, Erik Berdy of Michael Best Strategies and retired Lt. Gen. David Beydler of Academy Securities. (Photo: Tony Mecia/The Charlotte Ledger)
by Tony Mecia
A panel of defense and business leaders told a Charlotte audience that a sharply higher defense budget will probably lead to more artificial intelligence and autonomous systems that will bring about a new approach to warfighting.
Speaking at the Charlotte City Club uptown, the panel said that the U.S. is entering a new era in which national security, economic policy and private investment are becoming increasingly intertwined. They said the Trump administration's budget proposal to spend an unprecedented $1.5 trillion on defense reflects a shift toward preparing for long-term competition with China while replenishing weapons stockpiles depleted by conflicts in the Middle East and support for Ukraine.
And they likened the coming shift toward AI and autonomous weapons to historical transitions, such as bulking up nuclear stockpiles after World War II and focusing on precision weapons in the 1980s.
“We're entering an era of mass autonomous robotic warfare,” said retired Lt. Gen. David Beydler, the former commander of U.S. Marine Corps Forces with Central Command. “Our robots have got to do better than their robots. And I think that we're going to spend a lot of money on unmanning military equipment that we have right now, and that's going to require a lot of autonomy and a lot of AI.”
Beydler was one of three panelists at a lunchtime discussion hosted by the Charlotte Economics Club on June 24.
The panel predicted that traditional weapons will be enhanced by AI, robotics, drones, cyber capabilities and advanced manufacturing, and panelists said that companies hoping to compete for defense dollars should align their products with those priorities rather than pursue technologies disconnected from the Pentagon's strategic goals.
The speakers said the economic effects of stepped-up defense spending extend beyond major defense contractors. While large companies receive the biggest contracts, they said much of the spending ultimately flows to smaller suppliers, manufacturers and veteran-owned businesses.
“There's definitely a trickle-down effect of those big dollars,” said Jeff Harrick, an Army veteran and head of the aerospace and defense group at Huntington Bank.
Harrick said private equity firms and other investors are pouring increasing amounts of money into defense-related companies. Panelists agreed that public-private partnerships and private investment will be needed to expand production and accelerate innovation.
North Carolina ranks in the middle of the pack as a recipient of defense spending. It was No. 17 in the country in 2023, with about $12.5B spent in the state – most of it on military personnel. North Carolina is No. 4 in the country for military personnel, with major Army and Marine Corps facilities such as Fort Bragg, Camp Lejeune and Cherry Point.
The Charlotte Economics Club holds monthly luncheons and other events on economic policy, business trends, regional growth issues and global economic themes. The Ledger is the club’s media partner.