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In a new frontier for warfare, Ukraine is using technology to allow groups of drones to communicate and make decisions independent of their operator

Ukraine is using AI to coordinate drone attacks on Russian positions, marking the first known routine use of swarm tech in combat.

Swarmer, a Ukrainian company, developed software that allows drones to autonomously coordinate strikes, saving time and manpower.

The U.S. and other countries are developing swarm technology, but ethical concerns are rising about AI making lethal decisions.

On a recent evening, a trio of Ukrainian drones flew under the cover of darkness to a Russian position and decided among themselves exactly when to strike.

The assault was an example of how Ukraine is using artificial intelligence to allow groups of drones to coordinate with each other to attack Russian positions, an innovative technology that heralds the future of battle.

Military experts say the so-called swarm technology represents the next frontier for drone warfare because of its potential to allow tens or even thousands of drones—or swarms—to be deployed at once to overwhelm the defenses of a target, be that a city or an individual military asset.

Ukraine has conducted swarm attacks on the battlefield for much of the past year, according to a senior Ukrainian officer and the company that makes the software. The previously unreported attacks are the first known routine use of swarm technology in combat, analysts say, underscoring Ukraine’s position at the vanguard of drone warfare.

Swarming marries two rising forces in modern warfare: AI and drones. Companies and militaries around the world are racing to develop software that uses AI to link and manage groups of unmanned aerial vehicles, or UAVs, leaving them to communicate and coordinate with each other after launch.

But the use of AI on the battlefield is also raising ethical concerns that machines could be left to decide the fate of combatants and civilians.

The drones deployed in the recent Ukrainian attack used technology developed by local company Swarmer. Its software allows groups of drones to decide which one strikes first and adapt if, for instance, one runs out of battery, said Chief Executive Serhii Kupriienko.

“You set the target and the drones do the rest,” Kupriienko said. “They work together, they adapt.”

Swarmer’s technology was first deployed by Ukrainian forces to lay mines around a year ago. It has since been used to target Russian soldiers, equipment and infrastructure, according to the Ukrainian military officer.

The officer said his drone unit had used Swarmer’s technology more than a hundred times, and that other units also have UAVs equipped with the software. He typically uses the technology with three drones, but says others have deployed it with as many as eight. Kupriienko said the software has been tested with up to 25 drones.

A common operation uses a reconnaissance drone and two other UAVs carrying small bombs to target a Russian trench, the officer said. An operator gives the drones a target zone to look for an enemy position and the command to engage when it is spotted. The reconnaissance drone maps the route for the bombers to follow and the drones themselves then decide when, and which one, will release the bombs over the target.

Three people are involved in these missions: a planner, a drone operator and a navigator. Without the swarm software, nine people would be required, the officer said. Using the technology saves time and frees up personnel to work on other tasks, he added.

“You don’t require a separate pilot for each drone, one pilot can work with many drones,” Kupriienko said.

That is a help for Ukraine, which is fighting an adversary in Russia with far greater manpower. Fewer operators also simplifies coordination, while having drones communicate with each other at proximity reduces the risk that the enemy can interfere with signals to the UAVs.

To be sure, the Ukrainian operations fall short of what many would consider a full swarm, said Bob Tollast, a researcher at the Royal United Services Institute, a U.K.-based think tank. That could be described as hundreds of drones moving together intelligently and autonomously reacting.

Still, “even a small level of autonomous teaming would be impressive,” Tollast said.

Swarmer said it is preparing to test a swarm of more than 100 drones.

The business, which has secured funding from U.S. investors, is one of a number of companies working on swarm technology. On a visit last year to its office, hidden in a suburban house, two young engineers worked on a ping-pong table welding circuit boards and attaching components to drones. Elsewhere, a 3-D printer noisily produced a new component.

Outside, a neighbor mowed his lawn, seemingly oblivious to what was happening next door. Drones are loaded onto vehicles in a garage away from public view.

The U.S., China, France, Russia and South Korea are among the countries pursuing swarm technology. But analysts said they weren’t aware of it being used regularly in combat until hearing of the Ukrainian operations.

The U.S. has been exploring the technology since at least 2016, when it launched more than 100 small drones from three jet fighters. “The micro-drones demonstrated advanced swarm behaviors such as collective decision-making, adaptive formation flying, and self-healing,” the Defense Department said at the time.

In 2021, officials from Israel’s military told local media that it used a swarm of small drones to locate, identify and attack militants in Gaza.

However, the Israeli military doesn’t appear to have talked about swarming since, leading some drone experts to suggest that there may be challenges with its technology. The Israeli military declined to comment.

For all drone swarms, maintaining stable and reliable communication links between the UAVs is likely to be a challenge, said Zak Kallenborn, a drone-warfare expert at King’s College London.

In Ukraine, Swarmer’s technology had teething problems. At one stage, drones were swapping too much information and overloading the network, the Ukrainian officer said.

The technology also makes drones more expensive. That is a negative for Ukraine, which burns through UAVs. The country produced over 1.5 million drones last year alone, the government said.

AI is a growing focus for militaries and is increasingly being used in combat, though mostly to analyze data or navigate.

But the rise of AI in war is raising ethical concerns about the potential for machines to make life-or-death decisions without human oversight. The United Nations has, for example, called for regulation of lethal autonomous weapons.

The U.S. and its allies require a person in the so-called kill chain under current rules of engagement.

Swarmer said a human ultimately makes the decision on whether to pull the trigger.

“Folks have been talking about the potential of drone swarms to change warfare for decades,” said Kallenborn. “But until now, they’ve been more prophecy than reality.”

E.l.f. Beauty, Ulta and Unilever deals signal an optimistic outlook for the remainder of 2025.

Beauty bankers are optimistic that the recent spate of deals will continue into the second half of this year and into 2026.

After a standstill, a number of deals have been made in recent months, including E.l.f.’s acquisition of Rhode, Ulta snapping up Space NK and Unilever’s purchase of Wild and Dr. Squatch, not to mention L’Oréal’s rattatat deals with Color Wow and Medik8.

“The recent deal announcements send a really positive signal to the market, to all players involved in the market — from founders and management teams to private equity — that may be looking at deals but were concerned that strategics weren’t also going to show up at the table,” Ashleigh Barker, a director at Lincoln International’s consumer group, said.

“I do think that we will continue to see more deals getting launched through the remainder of the year, as well as heading into Q1 of next year, perhaps not with a flurry of deals that we often talk about once we get to this post-Labor Day period, but there are several opportunities that are contemplating the specific timing of when they want to go to market,” she continued.

“Whether it’s in the fall or in early 2026, it feels like people are getting ready for processes,” said an industry source, who added that potential buyers would favor newer entrants to market over the swath of color brands that launched sale processes in 2024. “Makeup by Mario stopped, Kosas stopped, and I haven’t heard a peep about Merit.”

The focus is more on skin care and hair care than makeup, from a category perspective. “Byoma is definitely getting done,” the source said, who added that a couple of hair brands, namely Amika, Camille Rose and Jolie, would be anticipated targets.

Dermatological skin care brands are still in demand, highlighted by L’Oréal’s acquisition of Medik8.

Other brands ripe for the picking are Westman Atelier, as reported, Salt & Stone, Biologique Recherche and Maesa, said a source. Trinny London is also said to be exploring its options, with sales around $85 million, and is asking for revenue multiples of 4x or 5x.

As far as what makes a viable asset, “the biggest question for our community in today’s world is the distribution question,” the source said. “Sephora is not helping brands long term, I think it will hurt some more. Indie beauty brands are going to have to compete with K-beauty brands at a lower price point.”

That being said, retail is still one of the most important factors for potential acquirers, the source said. “Retail is where you have sustainable businesses — if you can deliver sustainable business, that’s what strategics care about.”

I want to be clear from the outset. I’ve never been a car enthusiast. My driving history includes a hand-me-down Volvo with a hole in the floorboards and a series of aggressively practical vehicles, including a VW Golf and a Mazda SUV in which I hauled my family around for 12 years. Then I leased a BMW i4 electric car.

What drew me to the i4? Unlike other electric vehicles, BMWs don’t look like something out of the Jetsons; I like that they’re understated cars that happen to be electric. I liked that they’re far less common than other EVs in Northern California. Plus, the i4 comes in something like a dozen colors, including “Brooklyn Gray,” which – I know I sound ridiculous – delighted me in ways that Tesla’s handful of options never could. I’d read online that early adopters were having software issues, but with visions of my sleek new BMW dancing in my head, I conveniently filed that information away. Those first few drives felt exhilarating, too. The car was beautiful, the ride was smooth, and I felt like we were going places.

Nearly two years later, I’m doing something I never thought I’d do: eagerly awaiting the end of a lease on a luxury car because its software is such a disaster that it makes my rusted-out Volvo look like a paragon of reliability.

A love story gone awry

Let me count the ways this relationship has gone wrong, starting with the most basic function: getting into my own car. On multiple occasions, I’ve stood in parking lots, unable to unlock its doors with my phone despite the BMW Digital Key being specifically designed for this purpose. This sounds trivial until you’re juggling melting groceries while looking like you’re trying to steal your own car.

Digital key issues have become so widespread that BMW owners have at times shared elaborate multi-step workarounds that read like instructions for disarming a bomb: “1. Open the BMW app on your phone and use it to unlock the door. 2. Sign in with your BMW ID in iDrive. 3. Place your iPhone in the vehicle’s charging tray. 4. Wait for the digital key to reappear in the Wallet app. 5. Double-click the side button, authenticate with Face ID, and—finally—start the car.”

The user profile system is another exercise in futility. I’ve been unable to create guest profiles without being demoted to the bottom of the user hierarchy. What this means in practice is that if anyone else drives my car – even once – the vehicle will grab their phone and playlist the moment they’re within Bluetooth range. BMW has over-engineered their profile system to the point where it requires explicit linking steps that should really happen automatically.

The car’s CarPlay integration ranges from poor to actively dangerous. Software updates routinely break CarPlay functionality, requiring complete reboots of its iDrive infotainment system. The reverse camera issue is particularly maddening; put the car in reverse while using CarPlay navigation, and when you shift back to drive, you’re dumped onto the home screen instead of returning to your directions.

The backup camera itself is practically useless in low light conditions, and the screen frequently becomes scorching hot to the touch.

Then there’s the lights issue. Unless I remember to manually lock the car after walking away from it, I’ll occasionally notice later that the exterior lights are still ablaze in my driveway. I thought it might be human error the first time it happened. By the third time, I realized that it’s a “feature” where the i4 enters a “pseudo-sleep mode” that keeps lights and other systems running indefinitely. Multiple owners report the same issue: park the car, walk away, return later to find their vehicle lit up like a beacon and draining the battery.

Beyond the feeling on a near-daily basis that the car has amnesia, there are legitimate safety concerns. The 2022 i4 was subject to six recalls in its first year, including one so serious that BMW told owners their cars were fire risks when parked and advised them to “stop driving this vehicle immediately.” Since then, other recalls have included battery control units that can cause a sudden loss of power.

BMW releases software updates for the i4 approximately every few months, but the process is fraught with issues. Updates routinely break connected services, causing owners to lose access to traffic information, weather data, remote parking functions, and even the MyBMW app connectivity.

The over-the-air update system itself is unreliable, with owners reporting updates that get stuck at various percentages for days, forcing trips to dealers for manual installation.

What’s especially galling is that BMW positions these vehicles as premium products. If you’re buying rather than leasing, the i4 starts at over $50,000, with well-equipped models pushing $70,000 or more. Meanwhile, owners of less expensive vehicles, including Hyundais and Lexus models, report bulletproof connectivity and seamless user experiences.

I’m not saying the company rushed these cars to market without adequately testing their digital ecosystem, then decided to treat their customers as beta testers without taking their well-being into account, but I’m also not not saying that.

I genuinely wanted this relationship to work. The i4 is gorgeous, drives beautifully, and represents everything I thought I wanted in an electric vehicle. But I can’t continue a relationship where the most basic functions – unlocking doors, connecting my phone, getting directions – require the patience of a saint. (I do not have the patience of a saint.)

Even my tech-savvy husband, who is usually the first to suggest user error, recently emerged from the car after a particularly frustrating software meltdown and announced that he would “need to meditate for a bit.”

Car ownership shouldn’t be a constant source of aggravation. I shouldn’t have to maintain a mental database of workarounds for features that should just work. I shouldn’t dread software updates because they might break something that was (mostly) functional.

So BMW, I’ve had it. You made a gorgeous car, then sabotaged it with software so crummy that it’s almost comical. I thought we’d drive into the sunset together. Instead, I’m driving my i4 back to the dealership as my lease is over. I’m surprised to say I can’t wait.

Deal struck with Liechtensteinische Landesbank, which is retreating from the UAE

Rothschild & Co is expanding its Middle East wealth business through a deal with Liechtensteinische Landesbank (LLB), as international banks beef up their offerings for rich clients in the fast-growing Gulf region.

The two-century-old bank, which opened a wealth management division in Dubai only last year, has struck an agreement with LLB to pick up its Middle East clients as the Liechtenstein-based bank retreats from the United Arab Emirates.

The deal comes as ultra-wealthy people flock to the low-tax UAE with many fleeing changing taxation regimes in Europe and the UK, according to lawyers and advisers.

If LLB’s clients accept Rothschild as their new wealth manager, the bank said it would potentially pick up SFr1bn ($1.2bn) in assets as part of the deal.

“We are turbocharging our Middle East presence with this deal,” said Laurent Gagnebin, Rothschild’s chief executive of wealth management in Switzerland, describing the acquisition as “a decade of growth in one go”. Gagnebin said he was confident clients would remain with Rothschild.

Rothschild already has investment banking and alternative investments divisions in the Middle East, which Gagnebin said would complement the wealth management unit and were a “key differentiator” to other Swiss private banks in the region.

Other Swiss banks including Lombard Odier, UBS, Julius Baer and Pictet have a presence in the Middle East and many are also expanding.

Many Swiss-based family offices have relocated to Dubai in recent months as regulation and taxes have eroded the Alpine country’s attractiveness for some wealthy individuals.

“This represents our high conviction in the UAE’s potential, given the increasing concentration of both regional and global wealth here,” said Alexandre de Rothschild, the bank’s executive chair. 

Rothschild said it would also take over LLB’s Dubai office. Following the deal, Rothschild’s Middle East wealth management unit will have 25 staff — 20 of whom will come from LLB, which opened its office in Abu Dhabi two decades ago, followed by a Dubai outpost in 2008. 

Some private bankers complain that a rush into the Middle East wealth management market has stoked intense competition for qualified talent in Dubai, the region’s financial hub.  

But success is far from guaranteed. Despite its 20-year history in the UAE, LLB said it was withdrawing from the country to focus on its international clientele closer to home in Liechtenstein, Switzerland, Austria and Germany. The bank is listed in Switzerland with a market cap of SFr2.6bn.

Rothschild says it employs 4,600 bankers across 40 countries. Its asset management business manages €38bn, while its alternative investments unit Five Arrows oversees a further €29bn.