Like other emerging technologies, Artificial Intelligence (AI) is a dual-use technology with wider applications in military domain ranging from its integration with existing weapon systems to the development of new generation of complex military robots across all the five domains e.g. land, air, sea, cyber and outer-space. AI will revolutionised the warfare by making it faster, smarter and autonomous. A global debate has been initiated regarding the regulation of research, development, production, deployment and potential Military use of AI. The region of South Asia is no exception where India is heavily investing in the military applications of AI under its military modernisation initiative. China has already made a leapfrog development in the realm of AI technologies. Pakistan is in favour of a pre-emptive ban on all types of AI weapon systems. These developments would seriously undermine the strategic stability in the region and start a new AI arms race in South Asia. With this premise, this research paper aims to discuss the progress made by China, Pakistan and India in the realm of military AI and explore the prospects of an AI arms control framework in South Asia. This study argues that the prospects of an AI arms control framework in South Asia are unpromising.