Cyberspace, particularly as it relates to the rapid development of AI tools and emerging technologies, is increasingly situated in a nexus of opportunity for private industry and governments. As NATO member states move to define cyberspace as a 'permanently contested environment', this space can hold enormous defensive potential across key areas of critical infrastructure (energy grids, telecommunication towers, financial services), transatlantic supply chains, and military strategic operations. Standing to be a game changer for defenders and industry growth, AI can act as a force multiplier, enhancing our capacities to predict, preempt, and quickly respond to threats. Though the European continent and its strategic allies continue to respond with significant increases in defense budgets and advanced technology investments, particularly in light of Russia's ongoing invasion of Ukraine, further cooperation on a wider policy level is necessary. How is digital innovation transforming the future of defense across vital sectors of society? What is the role of the U.S.-EU relationship in doing so?