CHALLENGES OF INDUSTRY 4.0: INNOVATIONS AS KEY DRIVERS OF PROGRESS IN DEFENSE INDUSTRY

This paper investigates the challenges and opportunities associated with the implementation of Industry 4.0 technologies within the defense sector, focusing specifically on Serbia in comparation with global trends. As the demand for military capabilities rises, the integration of artificial intelligence (AI) and machine learning (ML) has become increasingly vital for enhancing the effectiveness and autonomy of modern military systems. Although leading nations such as the USA, China, and EU member states have recognized the transformative potential of these technologies, Serbia faces significant hurdles, including a slow digital transformation process, limited financial resources, and a shortage of skilled workforce necessary for adopting advanced technologies. Despite the existence of essential resources, such as human capital and a national digital strategy, the adoption of Industry 4.0 technologies in Serbia remains insufficient. Through cluster analysis conducted using Python and RapidMiner Studio, this study compares Serbia’s readiness against other countries based on the Network Readiness Index 2023. The findings highlight the pressing need for increased investments in research and development, as well as the establishment of robust strategies that can facilitate Serbia’s transition toward Industry 4.0. By addressing these challenges, Serbia can better position itself to leverage the benefits of advanced technologies and enhance its competitive edge in the defense sector, ultimately contributing to national security and economic growth.