As commercial drone flights increase, Unmanned Traffic Management (UTM) systems are adopting artificial intelligence to coordinate low-altitude airspace. This report details recent regulatory shifts, including the FAA’s Part 108 proposal, and reviews real-world trials in Europe aimed at reducing collision risks.

Facing record-breaking barrages of Russian loitering munitions, Ukraine has accelerated the production of low-cost, AI-assisted interceptor drones. Systems such as STING and Octopus are now being fielded to protect airspace and conserve high-value missiles, addressing the critical cost imbalance of modern air defense.

Quantum-Systems, a German drone maker founded in 2015, has grown from agricultural and mapping missions to supplying AI-enabled ISR systems for European and Ukrainian defence forces. With valuation discussions nearing €3 billion, the company reflects Europe’s accelerating investment in dual-use autonomous drones.

Shield AI has revealed the X-BAT, an AI-driven VTOL fighter jet capable of operating without runways. Valued at $5.3 billion and backed by major investors, the company plans first flight trials in 2026 as part of efforts to expand autonomous combat operations in high-risk environments.

DJI’s Mini 5 Pro has entered a regulatory grey zone as many production units weigh slightly above the 250g threshold that exempts hobby drones from stricter requirements. While the EU continues to allow the model under its C0 class through a manufacturing tolerance rule, authorities in the US, UK and Canada apply the limit strictly, meaning some pilots must now register the drone and follow additional operational rules. The situation highlights ongoing challenges in aligning drone standards across regions.

China has introduced a new autonomous military vehicle known as the P60, developed by defence manufacturer Norinco and powered by the homegrown DeepSeek AI system. Capable of supporting reconnaissance and combat logistics with minimal human oversight, the P60 reflects a wider strategy to advance AI-enabled military operations and reduce dependence on foreign technology.

Amazon has launched its latest drone delivery initiative using the MK30 model and advanced artificial-intelligence systems to deliver eligible items weighing up to five pounds within 60 minutes or less in select U.S. regions. The service builds on regulatory clearances, digital mapping and perception technologies, as Amazon advances its use of autonomous logistics in urban settings.

A research team from TU Delft and CWI has shown a quadrotor drone flying stably without an inertial measurement unit, relying instead on visual data from a downward-facing event camera. A compact neural network processes event streams in real time to estimate orientation and rotation rates, marking a step toward lightweight, AI-driven drone navigation inspired by insect flight.

DroneShield has expanded its counter-drone portfolio with SentryCiv, a subscription-based system bringing AI-powered detection to civilian airspace security. Using passive RF sensors and the company’s RFAI engine, SentryCiv offers real-time monitoring, threat prioritization, and quarterly AI updates—making advanced drone detection more accessible to airports, utilities, prisons, and other high-risk sites.

Dropla Tech ApS, founded in 2023 in Denmark with Ukrainian partners, is developing Blue Eyes, an AI platform that enables drones to detect landmines and unexploded ordnance in real time without GPS or cloud reliance. Backed by €2.4 million in pre-seed funding, the company seeks to cut demining costs and timelines, supporting Ukraine’s recovery and advancing global explosive threat detection.

Hong Kong and Brazil are reshaping drone regulations to support AI-driven applications across sectors. Hong Kong’s amendments create a new category for heavier drones and enable sandbox trials, while Brazil’s proposed RBAC-100 framework adopts risk-based oversight to expand agricultural and commercial drone use.

Japan’s Maritime Self-Defense Force has selected Shield AI’s V-BAT drone as its first ship-based ISR platform. The AI-powered system supports autonomous operations in GPS-denied environments and is part of Japan’s broader effort to modernize its defense capabilities in response to regional challenges.

During Drone Show Korea 2025, Bo-Hyung Lee, former commander of South Korea’s Drone Operations Command, emphasized the growing role of artificial intelligence in civilian drone applications. The event showcased AI innovations supporting agriculture, infrastructure, and disaster management, as South Korea advances its position in the global autonomous technology landscape.

On June 6, 2025, President Donald Trump signed two executive orders—“Unleashing American Drone Dominance” and “Restoring American Airspace Sovereignty”—aimed at advancing drone technology across the United States. The initiatives focus on AI-powered regulatory reform, expanded Beyond Visual Line of Sight (BVLOS) operations, and enhanced airspace security, with significant implications for public safety and domestic innovation.

Ukraine’s push to integrate artificial intelligence into combat drones has drawn global attention. While AI offers potential to counter jamming and reduce operator risk, real-world limitations in terrain, cost, and reliability persist. With Russia advancing its own AI-guided systems, the battlefield has become a proving ground for the future of autonomous warfare.

Hong Kong will host AI+ Power 2025 on June 5-6, spotlighting advances in artificial intelligence and drone technology. The exhibition will present practical AI applications in culture and urban development, reflecting the city’s push toward global tech leadership.

The MQ-28 Ghost Bat, Australia’s first domestically developed combat aircraft in over five decades, showcases the nation’s advances in AI-driven unmanned aviation. Developed by Boeing and the Royal Australian Air Force, the Ghost Bat is designed to work alongside manned aircraft, offering new capabilities in autonomous military operations.

BigBear.ai and Hardy Dynamics have joined the U.S. Army’s Project Linchpin to develop AI-powered drone swarm systems for military use. The project will focus on secure coordination for unmanned aerial systems and is set for field testing at Exercise Talisman Sabre 2025 in Australia, involving AUKUS and allied forces.

UK Defence Secretary John Healey has announced that the upcoming Strategic Defence Review will place a central focus on integrating artificial intelligence and emerging technologies into the armed forces. The review, led by Lord Robertson and Fiona Hill, aims to strengthen the UK’s position in NATO through targeted investments and procurement reforms.

DoorDash and Wing have introduced an AI-driven drone delivery service in Charlotte, North Carolina, offering fast food deliveries from local restaurants to select neighborhoods. The initiative aims to increase convenience, reduce emissions, and test the potential for broader adoption of autonomous delivery technology in the U.S.