PRIVILEGE project advances the state of the art of defence technology using Artificial Intelligence (AI) systems, with respect to data security and privacy preservation in a collaborative setting. The PRIVILEGE collaborative solution, based on distributed AI frameworks, such as federated learning and PATE, together with privacy-preservation and security tools such as Differential Privacy (DP), (Fully) Homomorphic Encryption (FHE), Verifiable Computation (VC), or Multi-Party Computation (MPC) will strengthen collaboration among different allies on the secure analysis of sensitive defence and military data. The proposed solution is universal, however, three specific real use cases will be targeted to validate the approach and demonstrate applicability of PRIVILEGE in practice: the classification of radio waves in defence operation, the classification of malicious network logs, and the video processing for unmanned vehicles.