Artificial Intelligence is increasingly changing the defence industry - from planning, data analysis and decision support to autonomous weapon systems. However, the use of AI in this area raises specific technological, strategic and ethical questions. This keynote highlights the current developments, opportunities and challenges of AI use in the defence industry, discusses regulatory frameworks and shows the role that government, industry and academia play in the responsible implementation. The aim is to convey a realistic picture of the possibilities and limitations and to provide best practices and impulses for the sustainable, strategically smart use of AI in the defence context.