The Russian invasion of Ukraine in 2022 is widely acknowledged as the world’s first large-scale drone-centric war. This case study examines the technological supremacy and battlefield deployment of smart loitering munitions in the Russia–Ukraine war. Emphasizing their role as a revolutionary factor in modern battlefield dynamics, the study evaluates their use of artificial intelligence (AI) in intelligent surveillance, loitering, targeting and precision strikes against traditional armored units, military logistics and installations while considering countermeasures such as electronic warfare, deception and air defense systems. Further, multiple comparison graphs have been presented throughout the paper to visually analyze the superiority of AI-powered loitering munitions. Next, it underscores the limitations, risks, ethical and humanitarian aspects in the light of international laws. Finally, the study concludes with future implications of this decisive and sophisticated technology.