Emerging Technologies in Defense: What Skills Will Be in Demand by 2027

The Shift Toward a Tech-First Defense Force

The defense landscape has changed dramatically as global geopolitical dynamics and rapid technological progress reshape military priorities. A Deloitte report shows U.S. defense spending on AI and generative AI will reach $5.80 billion by 2029. This represents a 3.5 times increase from 2025 levels. Such massive investment points to a fundamental change in how defense organizations build warfare capabilities.

Why Traditional Roles are Evolving

Defense industrial base faces mounting pressure to adapt as the battlefield becomes more digital. The Department of Defense (DoD) has found that outdated, hardware-centric processes slow down advanced software delivery to warfighters and leave critical systems vulnerable. Military capabilities that once depended mainly on physical platforms now rely on software integration, data processing, and network connectivity.

Military budgets worldwide reflect this changing priority. Global military spending has increased for ten straight years. It hit a record $2.70 trillion in 2024, marking the sharpest yearly increase since the Cold War ended. NATO allies plan to raise defense spending targets from 2% to 5% of GDP by 2035.

The Rise of Software-Defined Warfare

Software-defined warfare marks a transformation in military operations. The Atlantic Council’s Commission on Software-Defined Warfare defines it as “the continuous integration and delivery of cutting-edge technology and leading interoperable software into legacy and future defense systems to drive a software-centric, hardware-enabled approach to warfighting”. Militaries now focus on information advantage rather than just firepower.

The DoD has introduced modern software acquisition pathways and flexible contracting tools to reduce red tape and speed up capability delivery. These new approaches match modern software development practices and help deliver minimum viable products in under a year, unlike traditional acquisition with its rigid, hardware-focused timelines.

How Commercial Innovation is Influencing Defense

Tech companies entering the defense sector challenge traditional contractors. These neoprimes—companies like Anduril Industries (valued at $30.50 billion), SpaceX, and Palantir Technologies—operate faster and leaner with a software-first mindset. They build solutions that help close “critical technology gaps that are really important to national security”.

U.S.-based defense tech startups received about $38 billion through the first half of 2025. This funding could exceed its 2021 peak if the current pace continues. Such investment surge shows strong confidence in commercial technology’s potential to solve defense challenges.

The defense industry puts more money into digital transformation. Budgets now favor Research, Development, Test, and Evaluation (RDT&E) over traditional procurement. The Pentagon wants $179.00 billion for RDT&E in fiscal year 2026—a 27% increase from last year. This strategic shift focuses on research-intensive technologies that can give asymmetric advantages in future conflicts.

Top Emerging Technologies Reshaping Defense

Breakthroughs in technology continue to alter the defense map. Several groundbreaking capabilities will determine military superiority in the years ahead. These technologies fundamentally change how military forces operate, communicate, and work in all domains.

AI and Agentic AI in Command and Control

Agentic artificial intelligence has become a transformative capability for defense applications. These agents can analyze data, make decisions, and act with minimal human intervention, unlike traditional AI. “Agentic warfare” represents a change from isolated AI tools to integrated systems built for strategic, operational, and tactical applications. The Defense Innovation Unit’s Thunderforge Project implemented this approach through INDOPACOM in 2025, marking a vital step toward AI-enabled command structures. Agentic AI boosts the processing and interpretation of sensor data while it provides predictive decision support through forecasting and scenario generation.

Autonomous Systems Across Land, Sea, and Air

Defense organizations now deploy autonomous systems at unprecedented levels. Unmanned aerial vehicles conduct up to 80% of all fire missions in modern conflicts. The U.S. Army’s Robotic Combat Vehicle serves as scouts and escorts to protect mechanized units on land. Unmanned surface vessels have logged over 2,100 hours without human intervention at sea. These systems operate as coordinated swarms rather than individual platforms, which multiplies their effectiveness across domains and reduces human exposure in combat zones.

Cybersecurity and Zero-Trust Architecture

Zero Trust Architecture (ZTA) represents a transformation in military cybersecurity. Defense systems now focus on users, assets, and resources rather than static perimeters. The Department of Defense plans to implement 91 of 152 target ZTA activities by fiscal year 2027. This approach grants no implicit trust based on network location or asset ownership. ZTA protects warfighters by delivering secure, immediate mission data while it denies adversaries access to critical systems.

Space-Based Systems and Satellite Networks

Space plays a central role in defense operations. Satellite constellations provide vital capabilities for early warning, communications, and intelligence. Defense satellite launches will grow by 160% in the decade to 2034. Space-Based Infrared System (SBIRS) satellites in geosynchronous orbits use infrared sensors to detect missile launches, which provides critical early warning capabilities. Government space defense budgets reached USD 58.40 billion in 2023, with the U.S. share at USD 38.90 billion.

The Most In-Demand Skills by 2027

Modern technologies are reshaping defense capabilities, creating demand for new specialized skills among military personnel and defense industry professionals. The Department of Defense needs experts in technical domains to stay ahead technologically through 2027 and beyond.

AI and Machine Learning Engineering

The Pentagon’s growing investment in AI needs professionals who know Python, deep learning, and reinforcement learning techniques. AI engineers should master frameworks that process military data across systems. The Air Force Institute of Technology now provides specialized courses in autonomy and data science.

Cybersecurity and Ethical Hacking

DoD Directive 8570/8140 sets clear certification requirements for cybersecurity roles. Certifications like Certified Ethical Hacker (C|EH) now apply to 28 Defense Cyber Workforce Framework job roles. These credentials matter more as the DoD works to implement 91 of 152 target Zero-Trust Architecture activities by 2027.

Systems Integration and Data Fusion

Multi-sensor data fusion experts who combine information from different platforms into clear tactical pictures are crucial now. These specialists need to understand sensor integration across domains to get the most value from overlapping sensor capabilities.

Autonomous Systems Design and Testing

Testing autonomous military vehicles needs expertise in verification and validation processes that handle challenges in unstructured environments. The DT&E of Autonomous Systems Guidebook highlights the need for professionals who can review systems in their operational environments.

Defense Engineering and Rapid Prototyping

Engineers who can design, fabricate, and test prototypes within days instead of months are valuable assets. The Booz Allen team showed this value by creating a Synthetic Weapons Attachment prototype in just 5 days.

Digital Sustainment and Predictive Maintenance

The Army’s predictive logistics strategy needs specialists who can build evidence-based models that spot equipment failures early. These professionals must know both maintenance processes and machine learning algorithms to extend military asset lifecycles.

How the Defense Industry Is Building the Talent Pipeline

The defense industry just needs to build strong talent pipelines to handle unprecedented workforce demands in critical technology areas.

Defense Technical Excellence Colleges

Five Defense Tech focused Colleges will launch in 2026 to provide specialized training for defense sector careers. Students will prepare for priority roles including aerospace engineering, cyber security, and programming. Their eligibility depends on having strategic collaborations and connection with priority defense clusters.

Short Courses and Upskilling Programs

Beyond formal education, the industry invests heavily in targeted short courses. These help defense employers train new hires and existing staff faster. Technical skills for submarine engineering, specialized welding, and cyber warfare are the primary focus.

Defense Skills Passport and Career Mobility

The innovative Defense Skills Passport concept helps professionals move smoothly between armed forces, defense industry, and related sectors. This digital system tracks individual’s skills and experience effectively. It enhances career opportunities throughout the defense ecosystem.

Partnerships With Universities and Startups

Universities serve a vital role through initiatives like the Defense Science, Technology, Engineering, and Mathematics Education Consortium (DSEC). Organizations like Saab represent this approach through collaborations with Purdue University, MIT, and Syracuse University. Their projects span AI, autonomy, and radar technologies.

Conclusion

The defense world stands at a turning point as we look toward 2027. Software-defined warfare has become the life-blood of modern military strategy during this tech revolution. This has changed how nations show their power and guard their interests. The massive move to AI, autonomous systems, and zero-trust architectures means more than just using new tools—it shows a complete rethinking of defense abilities.

Defense groups must quickly adapt to this new reality. Commercial innovation speeds up defense tech growth, while old buying models can’t keep up. The skills gap might be the biggest challenge the sector faces. AI engineers, cybersecurity specialists, and systems integration experts will become the backbone of future defense teams.

Bold talent pipeline projects are now running. These include special tech colleges and skills passports that show how the industry sees this urgent need. Success depends on government agencies working well with schools and private sector innovators. Tomorrow’s defense sector will look very different—quick to move, driven by tech, and built on highly skilled technical talent.

Countries and groups that can direct this skills change will have big advantages in future battles. Experts who build knowledge in these key areas will find themselves at the vanguard of national security work. The defense tech revolution isn’t coming—it’s here now. It changes how we fight wars and creates new chances for those ready to step up.