Artificial Intelligence (AI) is fundamentally reshaping global defense, moving beyond a mere tool to become a core enabler of new paradigms in military operations. This report from Strategy& Germany (PwC) highlights AI's transformative potential in strategic decision-making, surveillance, autonomous systems, and logistics, asserting that it is "central to maintaining military superiority in an increasingly complex and interconnected global environment." The adoption of AI is no longer optional, and early adopters are poised to dominate AI-driven defense, creating a global divide.