OM Podcast #50: AI, the Workforce, and National Security

In our latest podcast, Barry and Misty interview Kyle Stephens, Senior Director at General Dynamics IT (GDIT). Kyle brings a unique perspective shaped by experience across retail operations, defense contracting, enterprise technology, and government service.

In this conversation, we explore how artificial intelligence is already reshaping work inside mission‑critical and national security environments. Kyle explains how he uses AI in his own role to accelerate analysis, compress large volumes of information, and improve decision quality. The discussion also addresses workforce implications, including how organizations should think about upskilling employees as AI adoption increases.

Dr. Kyle Stephens
Prof. Misty Blessley
Prof. Barry Render

 

 

 

 

Finally, the podcast turns to AI and security. Kyle explains why AI security in defense settings extends well beyond cybersecurity, and how AI is being deployed by the U.S. as well as adversaries.

 

TRANSCRIPT
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OM in the News: Drones Gain Manufacturing Altitude

Drones, in the headlines every day from Russia, Iran and Hezbollah, are also real manufacturing tools that can add valuable context and support. “They provide clear value in activities that are traditionally labor-intensive, disruptive or difficult to perform safely,” writes Industry Week (May 7, 2026).

Drones are making inroads in manufacturing in these two areas:

Inventory tracking:  Indoor drones equipped with barcode scanners and computer vision systems can perform inventory scans with minimal disruption. In large warehouses or storage areas, they can significantly reduce cycle-count time and increase count frequency. The real-time data can be integrated into corporate software platforms, reducing excess stock and decreasing production delays due to stockouts.

Inspection: Conventional industrial inspections often require scaffolding, rope access, shutdowns or travel. They expose workers to heights, to confined spaces or to environmental hazards. Drones can transform this activity. High-resolution visual, thermal, ultrasonic and lidar payloads allow inspection of hard-to-reach areas, including storage tanks and silos, pipe racks, roof structures and overhead utilities. For remote manufacturing facilities, a drone mission can eliminate days of logistics and increase safety performance.

The business impact is measurable: reduced downtime, lower mobilization costs, reduced safety risk and faster response to problem detection. In the energy and utilities sector, drone-based inspection has been estimated to reduce inspection costs by 70% and downtime by 90%.

Future innovation: The next stage in drone deployment is autonomous operation. Drones will increasingly operate from fixed docking stations, launching automatically to perform scheduled inspection missions. Data collected during these flights can be transmitted to AI-enabled analytics platforms and integrated into operational systems in near real-time. Coordinated drone swarms may be used to conduct large-scale inspections and surveys across a large infrastructure.

Challenges: Concerns about workforce displacement are common, and the increased adoption of drones is no exception. But drone programs typically augment skilled labor rather than replace it. Technicians can become certified drone pilots, remote inspection specialists, data analysts or AI-assisted defect reviewers.

Modern industrial drones are connected devices and must be treated as operational technology nodes within the broader cybersecurity architecture. A compromised drone platform presents a risk that goes beyond simple device failure. It may expose critical infrastructure data or provide a means to compromise enterprise networks.

Still, a fully scaled drone program that makes good use of its data is a significant strategic asset.

Classroom discussion questions:

  1. What other industries are already commonly using drones?
  2. Discuss their use in modern warfare.

OM in the News: Rise in Cargo Theft as Criminal Tactics Evolve

Food and beverage products led all stolen commodity categories, followed by agriculture, electronics, automotive parts, construction materials, and metals.

Trucks remain the dominant target, accounting for 70% of all incidents globally, and more than a fifth of global cargo theft incidents involved the cooperation of insiders.  Brazil, Mexico, India, the U.S., Indonesia, Chile, China, Germany, and South Africa ranked as the world’s top countries for recorded cargo theft incidents.

Rail cargo theft in the U.S. rose to 10% in 2025. Organized criminal groups – including cartels operating out of Sinaloa, Mexico – carried out coordinated attacks on freight trains across rural areas of Arizona and California, employing deliberate system sabotage, detailed advance planning, and armed encounters with law enforcement.

Technology-enabled theft also grew more sophisticated, with criminals exploiting cybersecurity weaknesses, fraudulent documents, and impersonation tactics to carry out fictitious pickups, double and triple brokering, and product hostage schemes.

In Europe, Germany, Italy, the U.K., France, and Spain reported the greatest number of thefts. Facility thefts rose notably – particularly in Italy, Germany, Romania, and Bulgaria. In the U.K., cargo theft losses reached $149 million in 2024. A $9 million smartphone heist at Heathrow airport ranked among the highest-value incidents.

In Asia, India, Indonesia, China, Bangladesh, and Vietnam were the region’s most affected countries. Half of all incidents occurred at warehouses and production sites. A notable emerging trend was the theft of rare earth minerals in China. Maritime risks also escalated sharply, with sea piracy incidents rising 85% in the first half of 2025 – reaching their highest levels in nearly a decade.

Criminal groups are targeting every link in the chain – from unsecured parking spaces and rest stops to exploitable digital freight platforms.

Enhanced GPS tracking and tamper-evident sealing, tighter governance around load board usage, increased investment in scanning technology and cross-agency intelligence sharing, as well as heightened scrutiny of subcontracted transport providers, are all needed.

Classroom discussion questions:

  1. What can operations managers do to quell this threat?
  2. What is the main source of the thefts documented?

Guest Post: What a Chinese Drone Ban Means for U.S. Farming

Dr. Misty Blessley is a professor at Temple U. She shares her insights monthly.

DJI, a Chinese company and the world’s largest manufacturer of commercial and industrial drones, faces scrutiny in the U.S. over alleged cybersecurity risks. It is now close to being banned here.

One U. S. business that sells spray-drone kits reported that its challenges began last year when importing DJI drones became significantly more difficult. This uncertainty has caused concern across industries that rely on these tools, from public safety and construction to supply chain logistics. For American agriculture specifically, a ban could cut off access to vital equipment, leaving fields unmonitored, untreated, and risking harvest losses.

DJI drones are favored by farmers as they save weeks of labor by spraying seeds, fertilizer and fungicide from the sky.

Agriculture has adopted drones more rapidly than almost any other sector. Monitoring drones help detect disease and water stress early, while spray drones enable precise application of fertilizer and pesticides during narrow weather windows. They have become crucial for reducing input costs (China is accused of subsidizing their drone industry, which might explain some of the cost differences), protecting yields, and facilitating smooth food movement through supply chains. If imports are halted, many farmers could miss critical windows, leading to lower yields and creating issues along the supply chain, from processors to consumers.

Mitigation Strategies
To prepare, farming businesses should apply lessons learned from managing recent supply chain disruptions:
 Diversify suppliers – Start testing U. S. or non-Chinese alternatives, even if they are currently less cost-effective. Early adoption minimizes dependence.

Stock critical parts – As restrictions tighten, building an inventory now provides a safety buffer.

Use mixed fleets – Combine current drones with alternative technologies like ground sprayers to prevent single points of failure.

Plan operational slack – Stagger schedules or adjust operations to account for potential delays.

Collaborate and advocate – Engage with farm bureaus and trade associations to push for phased implementation, subsidies, or funding for domestic options.
 

Classroom discussion questions:
1• What are the challenges and drawbacks of each mitigation strategy?
2• Considering that the Chinese drone ban is likely, how should user decision-making be updated? (Refer to Module A Decision-Making Tools and consider these facts:◦ Drones can cut labor costs by up to 90% and reduce chemical use by 20–30%. ◦ A high-end U.S.-made drone can cost nearly $30,000, compared to a similar DJI unit costing $6,500).

OM Podcast #39: AI, Sustainability, Cybersecurity, & Blockchain in Operations

We’re back with another exciting episode of the Heizer Render Munson OM Podcast! Today, Barry Render sits down with Dr. Subodha Kumar, Paul Anderson Distinguished Chair Professor at Temple University and Founding Director of the Center for Business Analytics and Disruptive Technologies.

Barry and Subodha dive into the transformative role of artificial intelligence in operations management, exploring how AI is reshaping sustainability practices, enhancing cybersecurity, and driving innovation in blockchain applications. Subodha shares real-world examples from industries like retail, dairy, and luxury goods, and discusses how AI is helping companies tackle greenwashing and improve supply chain visibility.

They also discuss the evolving threat landscape in cybersecurity, especially in logistics and supply chains, and how AI and IoT are both part of the problem—and the solution. Subodha also shares some powerful advice for students preparing for a future where AI will be central to every workplace.

 

Transcript
A Word document of this podcast will download by clicking the word Transcript above.

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Prof. Subodha Kumar
Prof. Barry Render