Working with the military is lucrative. For enterprise AI companies, it’s also a minefield.

“Reputational harm can be quite considerable” when AI tech providers work with the military, said Michael Connor, executive director of Open MIC, a nonprofit that has helped shareholders pressure tech companies including Microsoft and Amazon to establish ethical practices.

But these issues are complicated, Connor said. Because AI is used even for basic administrative purposes like automating invoices, it is important to consider DoD contracts with AI vendors on a case-by-case basis, he said.

“Just because you’re working with the defense industry doesn’t mean you’re doing something unethical,” Connor said. “It depends on what’s being used and when it’s being used. Context is critical.”