The Chief Digital and Artificial Intelligence Office (CDAO) said its goal was to accelerate the Department of Defense’s (DoD) adoption of agentic AI capabilities to “address national security challenges.”

CDAO head Doug Matty said the Defense Department wished to tap into the best technologies developed by U.S. AI companies to support its troops and maintain a strategic advantage.

The U.S. military is no slouch when it comes to technological innovation. For example, the DoD’s R&D arm — Defense Advanced Research Projects Agency or DARPA — created Arpanet in 1969, a communications network that linked computers far apart. Arpanet later became the internet.

DARPA has contributed to the field of AI over the decades, backing everything from expert systems to autonomous vehicles. In 2023, it developed an AI system that autonomously piloted an F-16 and engaged in dogfighting scenarios with a human-piloted F-16. A year earlier, it debuted a Black Hawk helicopter piloted only by an AI system.

Commercially, enterprises are developing AI-powered products to sell to the military, including autonomous or semi-autonomous drones, surveillance and reconnaissance systems, targeting systems, signal intelligence, flight control and decision systems and the like.

AI is already being used across the military. Last month, the U.S. Air Force completed “Experiment 3,” which tested the pairing of human and AI systems to speed up responses to threats known as the “kill chain.”

One of the tools tested was the Maven Smart System, which used AI to give real-time suggestions to military teams about possible targets and actions. Humans still made the final call. The goal was to see if AI could enhance human decision-making — not to replace the people.

In March, the DoD’s Defense Innovation Unit kicked off “Thunderforge,” an AI-driven military planning effort co-developed with Google and Microsoft. The AI system integrates intelligence streams and battlefield sensor data to generate operational recommendations with humans in control.

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Risk Worth Embracing?

The military’s embrace of AI signals a realization that 21st century warfare is changing and the U.S. military must modernize to keep up.

“The U.S. ability to deter war in regions of critical interest is fading,” wrote Carol Kuntz, adjunct fellow at the Center for Strategic and International Studies, in a June 2025 report titled “Artificial Intelligence and War.”

“Adversaries — particularly China — have improved their own capabilities and could now threaten classic U.S. power projection.

“AI-enabled military capabilities, particularly sensor and firing networks, combined with other force and program improvements, would be among the most promising strategies for shoring up deterrence and defense capabilities in the near- and mid-term,” Kuntz wrote.

But alongside the realization about the necessity of AI for warfare is a concern that these systems could make mistakes in judgment.

“If AI is to be used in war, decisions in the command center or the Situation Room would need to rely on predictions about the effects of the use of algorithms, particularly in sensitive applications,” Kuntz said. “Absent such predictive tools, AI-enabled military capabilities could not be responsibly authorized in uses such as a sensor and firing network.”

According to a 2024 Stanford and Georgia Tech paper that tested five language models in military and diplomatic decision-making, researchers found that all models took actions that escalated the fight.

“We observe that models tend to develop arms-race dynamics, leading to greater conflict, and in rare cases, even to the deployment of nuclear weapons,” the authors wrote.

The models justified their actions by saying they wanted to deter enemy actions by taking the first strike, according to the paper.

Nonetheless, AI model developers are forging ahead to sell their technology to the military. They have created dedicated business units to cater to the needs of the military and U.S. government. There’s Microsoft’s Azure for U.S. Government, Google for Government, Amazon’s AWS GovCloud, OpenAI for Government, xAI’s Grok for Government, Anthropic’s Claude Gov, among others.

In the end, despite AI’s inherent risks when deployed in warfare, the U.S. may not have a choice but to embrace the technology, especially since adversaries are not standing still.

“The United States is confronting the rise of a peer competitor, as well as a host of other military dangers and problems,” Kuntz said. “China fields precision guided munitions, hypersonic missiles and fighter aircraft increasingly able to pierce U.S. air superiority, capabilities that pose risks to classic U.S. power projection forces.”

“There is a reasonable basis to believe that AI-enabled military capabilities could help rectify many deficiencies in U.S. combat power,” she added.

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Several banks offer premium credit cards that provide hotel-specific benefits to cardholders. These cards typically include free stays, room upgrades, dining discounts, lounge access, loyalty programme upgrades, and bonus points for spending at partner hotels.

Some cards are co-branded with hotel chains, while others provide broad travel benefits across multiple brands.

Cards with hotel benefits (as compiled by Paisabazaar)

HSBC Taj Credit Card offers 25% savings on Taj hotel stays, room upgrades, dining discounts, free night stays and Taj InnerCircle Platinum membership.

Marriott Bonvoy HDFC Credit Card provides Marriott Bonvoy Silver Elite status, free night awards based on spending milestones, and Marriott Bonvoy Points on hotel and travel spends.

American Express Platinum Charge Card includes memberships with loyalty programmes such as Marriott Bonvoy Gold Elite, Hilton Honors Gold Elite, Taj Epicure Plus and others. Cardholders get room upgrades, complimentary breakfasts, and special rates at luxury hotels including Oberoi and Lalit.

Axis Bank Reserve Credit Card offers memberships like ITC Culinaire, Accor Plus and Club Marriott. Benefits include free night stays, dining discounts, room upgrades, and exclusive offers at partner hotels.

HDFC Infinia Credit Card (Metal Edition) provides Club Marriott membership, discounts and offers at ITC Hotels, and higher reward points on travel bookings through SmartBuy.

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ICICI Emeralde Private Metal Credit Card gives Taj Epicure membership, reward points on hotel bookings via iShop, and options to redeem points for hotel vouchers.

Axis Atlas Credit Card allows cardholders to earn EDGE Miles that can be converted into hotel loyalty points with partners like Accor, Wyndham, ITC and Marriott.

Hotels say these co-branded card tie-ups help build guest loyalty.

KB Kachru, Chairman, South Asia, Radisson Hotel Group, says, “Co-branded credit card partnerships are a powerful lever in enhancing guest loyalty and encouraging repeat stays. These collaborations extend the reach of our loyalty program beyond the hotel stay, allowing members to earn points on everyday purchases—making engagement with the brand more frequent and meaningful.”

He adds that Radisson has partnered with American Express and is exploring more local tie-ups to expand its base in India.

Arjun Baljee, Founder of Iconiqa and President of Royal Orchid Hotels, says, “Co-branded card partnerships help hotels remain top of wallet by allowing guests to earn points not only during stays but also through everyday spends, strengthening their transactional connection with the brand.”

Both hotel groups note that guests are redeeming more points and free night vouchers than before.

According to Kachru, redemption rates have increased, especially for leisure trips and festive stays. Baljee says guests often use points and vouchers on weekends and staycations.

Such premium hotel credit cards are generally used by frequent travellers and high spenders who stay at partner hotels and spend enough to benefit from loyalty rewards. Whether to use one depends on how often a person travels, their spending habits and if they can make full use of the perks relative to the annual fee, experts say.

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South Korea’s internet pioneers, Kakao Corp. and Naver Corp., are ramping up overseas investments in artificial intelligence startups, shifting focus to North America in a move that is raising concerns among domestic startups over tighter funding at home.

After a two-year lull, both companies have resumed active startup investing but with a markedly global tilt.

The pair, which respectively backed about 20 startups annually during 2021–2022, have since cut that pace by more than half, according to Seoul-based tracker The VC.

Now, their investments are skewed toward US-based companies developing next-generation AI technologies in hopes of tapping innovations that align with their core platforms or open up new growth paths.

AI IS A MUST FOR ANOTHER LEAP  

According to the investment banking industry on Tuesday, Naver Cloud Corp., a cloud computing arm of Naver, recently led a Series A funding round for Urban Datalab, the developer of an AI medical platform, MeDiAuto, with its own investment of 3.5 billion won ($2.5 million).

Naver’s newly launched Naver Ventures also made its debut investment in TwelveLabs, a Silicon Valley-based startup with an unrivaled multimodal AI technology that has already attracted big-name backers, including Nvidia, Samsung Electronics Co. and Intel Corp.

“We are open to collaboration (between Naver and TwelveLabs) next year or later,” said Kim Sung-ho, head of Naver’s Immersive Media Platform team.

Naver’s renewed push into AI investing has gained further momentum since its founder Lee Hae-jin returned as chairman earlier this year.

“If David wants to beat Goliath, he must aim well with the right stone,” said Lee at a ceremony celebrating the opening of Naver Ventures, the company’s first dedicated overseas venture capital in Silicon Valley, last month. “We are in the middle of picking the right stone.”

In this analogy, Naver is the underdog battling US tech giants in the AI race.

Naver’s in-house corporate venturing (CV) team, D2SF, has also made a series of AI-focused investments this year.

It has invested in AI-powered logistics platform startup Techtaka; AI game developer Anchor Node; AI-supported autonomous driving technology developer whereable.ai; and multi-modal commerce AI startup Studio Lab.

Kakao has been similarly active in investing in AI companies.

According to The VC, Kakao Investment Co., Kakao’s venture investment arm, has recently invested 3 billion won in Seoul-based AI chip startup FurisosaAI Inc.

Its another venture capital company, Kakao Ventures Corp. has joined early-stage funding rounds of AI agent developer Tzafon and large language model startup Trillion Labs.

NORTH AMERICA EMERGES AS A NEW BATTLEGROUND

While the uptick in tech investment is a welcome shift after years of slowdown, Korean startups now worry they may be left behind.

Historically reliant on Kakao and Naver for early-stage capital, domestic startups fear the funding tide may be turning westward – just as global AI interest is surging.

Of five startups Naver D2SF has invested in 2024, three are US-based, including 3D content developer Claythis and YesPlz AI, a fashion-focused multimodal AI developer.

Kakao Ventures has also invested in FS2, a 3D AI chip design company led by MIT engineers; Oligo Space, an automated spacecraft design and production toolchain developer; and medTech startup Kompass Diagnostics.

To deepen its reach in the North American venture capital ecosystem, Naver opened D2SF’s US office in Silicon Valley last year and launched Naver Ventures in the global tech hub to scout growth-stage firms.

Kakao Ventures’ officials regularly visit the US once every two to three months to build ties with local VCs, engineers and researchers.

Investors see more room for upside in US startups than in their Korean counterparts, offering greater synergy.

“The ecosystem for tech-based startups is more mature in the US, and top US universities generate stronger pipelines of investable early-stage companies,” said an official from a Korean VC company.

The trend also reflects a strategic calculus, said industry observers.

Korean tech giants face less public scrutiny abroad compared to frequent domestic criticism over big tech firms’ aggressive M&A moves with startups after investment.

That’s prompting concern that capital could increasingly flow to overseas startups instead of bolstering the local tech scene.

“Startup funding is borderless,” said an official in the VC industry. “Without competitiveness to appeal globally, any startups won’t survive.”

Write to Eun-Yi Ko at koko@hankyung.com
Sookyung Seo edited this article.