Israel's Ministry of Defense has bought dozens of EdgeUAV systems from Israeli company Axon Vision, which use AI to detect nearby air threats, sources familiar with the matter have told "Globes." The systems accomplish this by analyzing and classifying data collected by cameras mounted on armored fighting vehicles or stationary installations. The systems are part of the Ministry of Defense's total order from Axon Vision, which this year totals over $2.5 million.
In the current war, the importance of the technological response to protection from drones has been critical, and detection using EdgeUAV allows forces to defend themselves in time and intercept the threat before it strikes. The system is effective day and night, and therefore the IDF is considering installing it on a variety of armaments. Use of AI in general and EdgeUAV system in particular stems from the amount of data and decision-making that fighters and their commanders are required to make in a battlefield full of threats. AI processes the large amount of data for them, and automatically categorizes it.
The aerial threat is substantial and challenges Israel's security forces, as demonstrated both in the attack by the Houthis in Tel Aviv in July and the drone strike on a building in Nahariya last week. An Iranian-made Shahed 136 loitering munition that is used by Hezbollah and other Iranian proxies, has a speed of 185 kilometers per hour.
Another well-known challenge in the northern region is the number of false alarms but the AI embedded in EdgeUAV can distinguish between a bird and a genuine threat, and can identify different types of drones and estimate the distance of the threat. Axon Vision chairman Raz Roditti tells "Globes," "The battlefield has changed completely in recent years. We have seen and still see this in the Russia-Ukraine war. Due to technological developments, ready-made drones can be bought at low costs, equipped with a grenade or a payload and launched. 20 years ago, it would have cost many millions, but today you can take a DJI drone, attach a payload to it, and the cost is negligible to damage an enemy's army. When these drones are used in swarms, defense capabilities can become problematic."
What Iron Dome misses
Israel has a multi-layered air defense system that has proven itself in the short range with Iron dome, which is relevant for drones, and Rafael's David's Sling. But these systems are challenged by UAVs even more than by rockets because drones can maneuver and fly at a low altitude where radars are less effective. At the same time, they are relatively small, and consist of materials from which reflection of radar waves is low.
"In large numbers and on difficult terrain route like in the north, you see that it is difficult to achieve total protection," explains Roditti. "AI comes in to identify not only through radar, which is a tool with advantages, but has difficulty in mountainous areas, and may be confused by flocks of birds. Also, our systems are also activated in air by their own means, and therefore we need to be certain before doing any harm."
AI is able to extra data gathered from radar and from cameras and fuse them together. Roditti says that the aim in equipping EdgeUAV was to give combat forces the ability to defend themselves, assuming that all layers of defense have failed. "When you equip with AI, it scans 24/7, can detect the threat and provide an alert. The alert is worth a lot, because it allows the fighters to protect and save themselves. One of the reasons soldiers have been killed has been the lack of an alert, because Iron Dome does not identify the drone in every instance."
"A fundamental change in the market"
Axon Vision was founded in 2018 by Roditti with CTO Ido Rozenberg and Michael Zolotov. The company specializes in developing and implementing AI-based software solutions for defense platforms and following demand from the IDF has received orders from the US and European armies. The company is now in talks with additional customers.
Roditti says, "Since the outbreak of the Russia-Ukraine war the number of contracts has grown by hundreds of percentages. Since October 7, due to operational experience, the wave has strengthened. This combines with the fundamental change in the market, which understands the need to buy AI from startups as well as the tech giants, which are advancing in a traditional way at a slower pace."
Axon Vision is developing AI capabilities based on optics for the3 defense market and works closely with the Ministry of Defense directorate of defense research and development (DDR&D) (MAFAT), which is responsible for weapons R&D and technology infrastructure. "When we founded the company, people told us, 'Why found a defense company? The market is slow and it will be impossible to sell.' Part of the reason was Zionism. As time passed we understood that defense-tech was moving forward. US startups received opportunities and in Israel MAFAT was pushing."
First funds raised from Elbit
The company has 30 employees and for the past 18 months, Brig. Gen. (res.) Roy Riftin, a former chief artillery officer, has served as CEO. Including the EdgeUAV system, total orders that Axon Vision has received from the Ministry of Defense this year has amounted to more than $2.5 million, equaling the total company revenue in 2022, which this year has reached $5.5 million. Roditti says that the company's expectation is to end the year with orders totaling $10 million. In its early years, Axon attracted an initial investment from Elbit Systems, and subsequently the founders bought back their stakes. However, that buy back strengthened cooperation between the companies until today. The company is currently raising a $15 million financing round. "Since October 7, venture capital funds have been prepared to consider defense tech, and we are in talks with funds. There are not many mature companies, you can count them on one hand. Before the war, it was not like that," Roditti points out. "The openness of the funds stems from the fact that it makes business sense to invest in the defense tech to maintain the technological leadership of the IDF. If you look three years ahead, the openness of the venture capital funds will lead to startups that will become major players. Moreover, in another five years, I believe that a new large defense industry will grow here, arising from venture capital."
He adds, "A tectonic change is taking place in the military world through assimilation of artificial AI. In the past, it was difficult to convince the IDF and others, but we have connected up with MAFAT, which encourages the introduction of technology. Since the outbreak of the war, there has been an acceleration in the adoption of technology. If 3-4 years ago we had presented to the US Army and they would have said 'interesting, but not in the plans,' now you see that AI has become a requirement in almost every tender."
Published by Globes, Israel business news - en.globes.co.il - on September 15, 2024.
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