In the mid-1970s, despite the failure of the Nytt infanterivapen (New Infantry Weapon) program, the Swedish Armed Forces decided to continue to follow the general transition towards smaller calibre ammunition and directed the Försvarets MaterielVerk (FMV) (Defence Materiel Administration) to procure a suitable replacement for the Ak 4 capable of using 5.56×45mm NATO ammunition, which under STANAG 4172 is a standard cartridge for NATO forces as well as many non-NATO countries.

[3][4] The weapon was required to be highly reliable in the subarctic climate of northernmost Sweden, as well as being easy to handle and maintain, while meeting a certain minimum level of accuracy.

These included a larger trigger guard and cocking handle (to allow for operation while wearing winter gloves, a necessity for temperatures reaching down to −30 °C (−22 °F)), a larger handguard, a different collapsible shoulder stock, different iron sights and gas block, a modified bolt, deletion of the 3-round burst capability, and a corrosion-resistant green (instead of black) finish.

Swedish blank ammunition uses a wooden plug in place of a bullet, so the flash suppressor was fitted with grooves to accept the Swedish blank-firing adaptor, which besides choking the barrel to ensure enough gas pressure for reliable operation also prevents potentially dangerous pieces of wood from leaving the weapon by smashing the plug into a fine sawdust.

During the troop trials there were an alarming number of complaints by soldiers about damaged teeth from being struck in the mouth by the muzzle end.

The first versions of the Ak 5 family were made by the Swedish company FFV Ordnance AB (later part of Saab Bofors Dynamics) under license from FN, with deliveries starting in 1986.

This version uses fixed iron sights, and the Swedish Armed Forces have estimated that the maximum practical distance is 400 meters, but it can be used at longer ranges.

This was done by having certain units use an experimental model designated Ak 5CF where "F" stands for the Swedish word försök (in this context, experiment or trial).

These tests were completed in June 2005 and four months later, the FMV signed a contract with Saab Bofors Dynamics covering the modification of nearly 40,000 Ak 5 assault rifles, which took the company approximately four years to implement.

Serial deliveries were scheduled to begin in June 2006 and the Ak 5C was first issued to priority units serving in Afghanistan (ISAF), Chad (EUFOR Chad/CAR), and Kosovo (KFOR).

The Ak 5C is now the standard-issue rifle of the Swedish armed forces, and production of the A and B versions are currently discontinued and existing stock put in storage.

Due to the smaller dimensions of the carbine, the Ak 5D is especially suited for ranger/urban warfare units and vehicle crews who often benefit from a more lightweight and compact weapon when taking into account the nature of their assignments and the environments in which they often operate.