Defence secretary pushes AI-driven overhaul of armed forces' financial systems

Defence Secretary Rajesh Kumar Singh highlighted the importance of enhancing outcome-oriented mechanisms, promoting emerging technologies, and foster collaboration across the departments to enhance operational efficiency of the armed forces. He was speaking at the two-day Integrated Financial Advisors Conference 2025, organised by Defence Accounts Department (DAD) of the Ministry of Defence recently.

Singh said DAD achieved 100 per cent capital budget utilisation in 2024–25, which was a first in the last five years.

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Further, he highlighted the importance of Project SAMPURNA (System Automation for Procurement, Payment and Uniform Raksha Accounting), which integrates AI, machine learning, and data science into financial management which is expected to make the department more efficient.

Emphasising Defence Minister Rajnath Singh’s directive for DAD to become a centre of excellence in defence finance and economics, the defence secretary called for research-based policy inputs, cost-benefit analysis in procurement, and AI-driven financial analytics.

According to the defence ministry, the conference featured six focused business sessions under which the role of financial advisors was highlighted to enhance capital acquisition outcomes, multifaceted challenges confronting the recently implemented IFA system in Military Engineer Services and the prospective pathways for their resolution, complexities associated with the Army Commander Special Financial Powers & merits and potential challenges of outsourcing in the defence sector.

Defence