Also, this is just an impromptu addendum to my extended ramble on the AI bubble crippling tech's image, but I can easily see military involvement in AI building public resentment/stigma against the industry further.
Any military use of AI is already gonna be seen in a warcrimey light thanks to Israel using it in their Gaza Geneva Checklist Speedrun - add in the public being fully aware of your average LLM's, shall we say, tenuous connection to reality, and you have a recipe for people immediately assuming the worst.