Cyber adversaries, particularly North Korean groups, are increasingly using AI-enhanced malware to infiltrate software development processes within the defense tech sector, targeting supply chains for espionage and sabotage. This evolution in tactics, which includes malicious code injections and the exploitation of open-source repositories, presents significant challenges for detection and demands advanced behavioral analysis. Organizations are urged to adopt secure development practices, conduct thorough code reviews, and deploy AI defenses to mitigate these threats. This trend, impacting critical infrastructure, underscores the pressing need for vigilance and robust cybersecurity measures within the software ecosystem, particularly for nations like India that are enhancing their defense capabilities.