In future conflicts, it will be essential for warfighters to maintain a robust and data-driven operational decision-making process. Supporting this capability, artificial intelligence (AI) is critical to enabling action at the speed of the digital battlespace, which will be far faster than the human ability to process and act on data. Practically, AI is being applied to bring forward defense programs that would provide an edge against opponents. This is why the use of AI in building powerful defense technologies is picking up pace in the Middle East. AI catalyzes changes in modern battlefield needs at various domains and concepts of operation. This study provides an overview of AI for military utilities and applications among Middle East defense markets and industries. It covers five use cases and market trends, common and emerging applications, recent regional contracts, and growth opportunities for military applications. This updated report covers recent AI trends in the most modern countries in the region, particularly Israel, Saudi Arabia, and the United Arab Emirates, while discussing specific AI military programs as a genuine part in their effort for military modernization amid emerging threats from Iran. The report elaborates on specific AI defense use cases on regional bases, such as advanced AI application for UAVs, for military intelligence analytics, or as part of growing digitalization trend among regional armed forces. The analysis considers local and global industry participants that operate AI-related military activities and leading software/technology providers, and presents market drivers and restraints for the market, such as regulatory and ethical constraints regarding the use of AI. Author: Avi Kalo