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Report

Offset-X Evolved

Offset-X Evolved argues that the United States needs a technology-centered offset strategy built on sensing, AI, autonomy, production capacity, allies, and defense institutional reform to preserve warfighting advantage.

Authors
Dr. Paul Lyons, James Ryseff, Luke Vannurden, Kian Molani
Published
September 18, 2025
Length
54 pages
Reading time
48 min read
Key Findings
  • The report argues that great-power competition is giving way to an era of confrontation in which China, Russia, Iran, and North Korea increasingly coordinate disruptive actions against U.S. interests and allies.
  • Recent conflicts in Ukraine, Gaza, Iran, and the Red Sea are presented as evidence that sensing, AI, autonomy, and unmanned systems are changing tactical and operational warfare.
  • The hypothetical 2027 Taiwan scenario identifies five drivers of defeat: underinvestment in evolving technologies, insufficient experimentation, weak joint concepts, slow responses to PRC coercion, and limited allied capability.
  • The report concludes that hyperpower, overmatch, and isolationism are less viable than an offset strategy that leverages U.S. technological innovation against adversary weaknesses.
  • SCSP proposes a Joint Warfighting Concept built on information advantage from all-domain sensors, decision advantage from AI, and lethality advantage from autonomous systems produced at scale.
Overview

Offset-X Evolved updates SCSP’s 2022 Offset-X strategy in light of a deteriorating security environment and rapid advances in AI, autonomy, sensing, and software. The report draws on Defense Panel activity since 2022, including visits to Ukrainian frontlines, engagements with Taiwanese officials, tabletop exercises with technologists and military planners, innovation and national security summits, and input from more than one hundred experts. It uses a hypothetical Taiwan war in 2027 to illustrate how structural weaknesses in U.S. defense investment, experimentation, joint concept development, responses to Chinese coercion, and allied capability could produce strategic defeat. The report argues that the United States is moving from great-power competition into an era of confrontation with China, Russia, Iran, and North Korea, while recent conflicts show that unmanned systems, AI-enabled decisionmaking, pervasive sensing, and mass production are reshaping modern warfare. It rejects renewed hyperpower, overmatch, and isolationism as viable strategies and recommends an offset strategy centered on information, decision, and lethality advantage through sensors, AI, and autonomy. Policy proposals include dynamic deterrence, a production mindset, procurement funding for evolving technologies, stronger allied capability, a Joint Warfare and Innovation Command, digital warfare institutions, and a dedicated innovation budget.

The decisive decade we are in is not a horizon—it is a closing window.

SCSP
Recommendations
  1. Recognize that we are now in an Era of Confrontation. China, Russia, Iran, and North Korea are uniting in their intent and harmonizing their disruptive actions to end America’s global leadership.
  2. Adopt an Offset Strategy. By leveraging strengths in technology and innovation, the United States could develop or rebuild asymmetric advantages against our adversaries and…
  3. Rapidly resource and execute a new Joint Warfighting Concept. This conceptual framework promises to deliver informational, decisional, and lethality advantage fundamental to prevailing in the type of warfare the…
  4. Evolve the U.S. defense enterprise to meet the demands of speed, relevance, scale, and coherence. This evolution needs to include creation of a flexible and dedicated innovation budget, beginning with at least 1% of the Department of War topline…
From the report

Offset-X Evolved (Offset Xe) reflects a continuum of Defense Panel activities conducted since the release of Offset-X in 2022 and the evolution of warfare, technology, and the global security environment that demand urgency and decisiveness.

Documents
Publication

Published by the Special Competitive Studies Project. Co-publishers and external authors, where they exist, are credited in the byline above.

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