When the AUKUS trilateral security partnership was announced in 2021, it understandably made global headlines. Much of the early focus centred on Pillar 1 – a landmark agreement to deliver conventionally armed, nuclear-powered submarines to Australia. But behind the headlines, Pillar 2 quietly took shape – a second line of effort focused on deepening collaboration across a suite of advanced capabilities: AI, quantum, undersea systems, cybersecurity and more.

It’s an exciting proposition, but one that still raises critical questions.

After reviewing the scope, objectives, funding, and delivery structures surrounding Pillar 2, it’s clear we’re facing a common challenge: momentum is not the same as progress. Without a strategic backbone to unify effort across domains and nations, we risk underdelivering on one of the most promising defence tech collaborations of our time.

Here is my summary of the current challenges:

Scope: Ambitious, but disjointed

The scope of Pillar 2 is impressively wide-ranging, spanning eight core capability areas from hypersonics and quantum Technologies  to AI and cyber. These are domains with significant strategic importance and disruptive potential.

But despite broad agreement on what needs attention, the how, when, and who remain too vague. No published roadmap, unclear leadership roles, and a lack of common standards mean it’s difficult to align efforts across the UK, US, and Australia.

Interoperability is a foundational requirement for any trilateral advantage. Without shared technical standards or synchronised development timelines, even well-funded initiatives risk duplication. Or worse, incompatibility.

Funding: Fragmented and hard to navigate

Each nation is funding domestic R&D through their own channels – with Australia pledging AU$3.4 billion as part of its Defence Strategic Review. Yet there is no centralised AUKUS fund or transparent trilateral investment mechanism.

This leaves the private sector – particularly startups, SMEs, and research institutions – operating in the dark. Without clarity on how to access funding or where to plug in, we risk sidelining the very organisations capable of delivering the next big leap in capability.

Objectives: Strategically sound, operationally vague

At a strategic level, Pillar 2’s aim is clear: sustain a technological edge against evolving threats, particularly from China.

But operational clarity is lacking. We need to ask: what does success look like? Where are the measurable outcomes, deadlines, and performance indicators?

Without clearly defined targets and progress reporting, it becomes harder to prioritise, to assess return on investment, or to hold delivery partners accountable.

Delivery: Progress exists, but feels ad-hoc

Encouragingly, early examples of cooperation are emerging – from AI-enabled targeting to quantum sensing pilots. But these efforts remain siloed, often driven by bilateral rather than trilateral agreements.

There is no central coordination body overseeing delivery across all eight technology domains. For innovators and industry, the pathways into Pillar 2 remain unclear. Collaboration is occurring, but without an integrated framework, it feels more opportunistic than strategic.

The UK perspective: Better industry engagement is urgently needed

In the UK, our larger defence primes are relatively well plugged in. But the same cannot be said for our broader innovation ecosystem – including SMEs, scale-ups, and universities.

If we want to maintain and grow the UK’s influence within AUKUS, we need to rethink how we engage the full spectrum of UK industry. That means:

• A dedicated UK AUKUS Industry Office to coordinate outreach and provide a single point of contact.
• A UK AUKUS Industry Advisory Group that includes SMEs and academia as core stakeholders.
• A shared digital platform where organisations can submit proposals, seek partners, and track funding opportunities.

There also needs to be alignment across intellectual property rules, security classifications, and export controls – or else risk-averse organisations will hesitate to get involved.

A Path Forward: Three Recommendations

To make Pillar 2 a success, we believe three structural improvements are essential:

1. A strategic implementation plan
   A public-facing document outlining priorities, timelines, and expected outcomes.
2. A trilateral capabilities office
   A central authority to govern interoperability, oversee coordination, and reduce duplication.
3. Formal joint milestone reviews
   Annual updates delivered to each national legislature to ensure transparency and accountability.

 

In Closing

AUKUS Pillar 2 represents a generational opportunity to reshape how we build and share technological advantage across trusted allies. But without clear scope, shared objectives, transparent funding, and structured delivery, the promise of Pillar 2 risks being lost in translation.

Strategic ambition alone won’t deliver success. Now is the time to put the right frameworks in place – before momentum outpaces structure and opportunities slip through the net.

By Dan Jones, Defence Specialist at 4Secure