Indian defence companies are increasingly harnessing AI for modern warfare, with an annual allocation of Rs 100 crore for military AI projects under the Rs 6.81 lakh crore 2025-26 defence budget. This trend supports predictive analytics, autonomous systems, and cybersecurity, with predictions of exponential growth in AI-integrated platforms across all forces. Speculations point to enhanced private sector involvement, potentially leading to new joint ventures by late 2025.