How Small States Can Outpace Giants in the AI Era

APRI Armenia Senior Advisor Leonid Nersisyan moderated a panel at the 2026 Yerevan Dialogue on “Defense Industrial Cooperation: Supply Chains, Talent, and the Role of Smaller States” with illustrious speakers from Armenia, India, and Poland. The panel explored how the shift toward software-based systems and AI is leveling the playing field for countries that prioritize agility over scale.

Here are key takeaways from the discussion:

  • Small states and specialized companies should focus on “niche” sectors—like AI, drones, and electronics—as they can innovate faster and more effectively than traditional industrial giants.
  • In modern warfare, governments should introduce agile procurement practices, enabling them to stay attuned to technological developments.
  • High defense budgets don’t have to be a burden on the taxpayer. With the right research and development regulations, defense innovation creates high-tech jobs and develops dual-use technologies that boost the entire national economy.
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