Artificial intelligence (AI) has become a game-changing force across numerous industries, from healthcare to finance. The technology’s ability to optimize processes, improve decision-making, and unlock new opportunities has made its rise inevitable. Yet, in the Aerospace and Defense (A&D) sector, the adoption of AI has been more measured compared to other industries. Given the high stakes involved—whether in the cockpit of a commercial jet or on the battlefield—the slower pace of AI integration reflects a cautious approach driven by safety and reliability concerns.
In this article, we will explore the current state of AI deployment in the aerospace and defense industry and why its adoption, though promising, is progressing at a slower pace compared to other sectors.
Why the Aerospace and Defense Industry Is Slower to Adopt AI
Unlike industries where AI errors may result in financial losses or operational inefficiencies, a malfunction in the aerospace and defense sector could have far more severe consequences. A faulty AI system in the manufacturing of consumer goods might lead to distribution issues or subpar products. However, a flawed AI in a fighter jet's navigation system or an airliner's autopilot could result in catastrophic failure, risking lives and national security.
This level of risk has compelled the industry to prioritize safety and redundancy in its AI applications, ensuring that any deployed AI system is rigorously tested and failsafe. The slower pace also reflects the stringent regulatory requirements that govern aerospace and defense technologies. Despite these challenges, the industry is finding innovative ways to integrate AI into various facets of its operations, leading to notable advancements.
AI in Aviation: Improving Efficiency and Customer Experience
AI is making headway in the aviation industry in areas where human interaction is reduced or eliminated altogether. For instance, contactless technologies like automated airport check-ins and biometric passport controls are becoming standard features in many international airports. These systems, powered by AI, enhance security, reduce wait times, and streamline the passenger experience.
In addition, airlines are using AI to optimize dynamic ticket pricing. By analyzing load factors, market trends, and customer behavior, AI systems help airlines maximize revenue by adjusting ticket prices in real-time based on demand and available seats.
Another significant AI application is in delay prediction. By using machine learning models that analyze weather conditions, air traffic data, and historical flight patterns, airlines can better anticipate delays and notify passengers sooner, ultimately improving customer satisfaction.
AI is also transforming flight dispatch and crew scheduling, with algorithms now being used to optimize flight routes for fuel efficiency and to manage complex crew rosters. Predictive maintenance, enabled by AI, is reducing downtime by flagging potential mechanical issues before they lead to costly repairs, thus ensuring smoother operations and increased profitability for airlines.
AI's Role in Satellite Management
AI is proving instrumental in managing the growing number of satellite constellations orbiting the Earth. The cost of maintaining these satellites can reach hundreds of millions of dollars annually. AI, however, is changing this dynamic by enabling smarter, more autonomous satellite operations. AI systems can detect anomalies, adjust orbits, and optimize performance without human intervention, potentially reducing costs to just $10-15 million, according to satellite manufacturer Phantom Space.
This use of AI not only cuts operational costs but also enhances the reliability and resilience of space-based infrastructure, which is critical for applications ranging from communication to global positioning systems (GPS) and Earth observation.
AI in Aerospace Manufacturing: Speed and Precision
The aerospace sector is also using AI to improve aircraft production. By analyzing production data, AI can identify ways to optimize manufacturing processes, thereby reducing costs and speeding up production times. For example, Broetje-Automation, a German company, uses AI algorithms to design fuselage skin-fastening machines. These AI-powered systems have significantly improved efficiency, replacing manual, judgment-based processes with more precise, automated workflows.
With AI, manufacturers can streamline their supply chains, enhance quality control, and reduce waste, all of which contribute to better margins and faster turnaround times in aircraft production.
Federal Funding Driving AI Innovation in Defense
In the defense sector, government support plays a key role in accelerating AI development. The U.S. Department of Defense (DoD) has significantly increased its investment in AI technologies, spending $874 million on AI initiatives in 2022, a 50% increase from the previous year. This figure surged to $1.8 billion in 2023, underscoring the growing importance of AI in military applications.
Federal funding is crucial not only for research and development but also for incentivizing private companies in the A&D industry to adopt and integrate AI into their operations. Companies that embrace AI are likely to secure more lucrative government contracts, further driving the sector’s overall adoption of the technology.
AI-Powered Mergers and Acquisitions in Aerospace and Defense
As AI becomes more central to aerospace and defense operations, we are seeing an increase in M&A activity involving AI-focused startups and established industry players. Large A&D firms, which may lack the internal resources to develop AI technologies in-house, are increasingly looking to acquire specialized AI companies to integrate their innovations into existing platforms.
Recent examples include AeroVironment’s $120 million acquisition of Tomahawk Robotics, a company that develops AI-based control systems for military robots, and Parsons Corporation’s $200 million purchase of Sealing Technologies, an AI-focused cybersecurity firm. Similarly, Saab recently acquired CrowdAI, a startup specializing in visual automation powered by AI.
On the flip side, startups that have raised capital through venture funding may seek partnerships or acquisitions by larger firms to gain access to established supply chains, government contracts, and capital resources.
Looking Ahead: The Future of AI in Aerospace and Defense
While the aerospace and defense industry has been slower to adopt AI compared to other sectors, the potential for transformative change is undeniable. As AI tools continue to mature, they will help aerospace and defense companies improve efficiency, cut costs, and unlock new capabilities in areas ranging from aircraft design to satellite management and military operations.
In the coming years, we can expect AI to become even more deeply embedded in the A&D sector, leading to greater innovations, higher profit margins, and a competitive edge for companies that successfully navigate the complexities of AI integration. As AI technologies continue to evolve, the aerospace and defense industry is poised to soar into a new era of efficiency, safety, and technological excellence.
French jet engine manufacturer Safran has announced the acquisition of AI firm Preligens for €220 million ($243.3 million), marking a strategic move to enhance its artificial intelligence capabilities, particularly in its Electronics & Defense sector.
According to a press release issued on September 2, Safran plans to rebrand Preligens as Safran.AI. By integrating the AI firm into its Electronics & Defense division, Safran aims to accelerate the development of AI-driven products and services. Jean-Yves Courtois, CEO of Safran Electronics & Defense, highlighted that this acquisition will enable the company to deliver more reliable information and decision-making support for operators involved in surveillance and identification tasks within the defense and space industries.
Safran also intends to apply Preligens’ AI technologies to Industry 4.0 initiatives, such as automated image analytics, to help quality controllers identify anomalies in critical components.
Founded in 2016, Preligens has earned a strong reputation for its AI analytics solutions, particularly in processing high-resolution imagery, full-motion video, and acoustic signals. The company’s unique AI Factory allows for the development of cutting-edge AI algorithms, trained on vast datasets from diverse sources, ensuring end-to-end security and traceability.
Safran’s Commitment to AI Innovation in Aerospace and Defense
This acquisition strengthens Safran’s technological capabilities and reinforces its position as a leader in utilizing AI to transform the aerospace and defense sectors.
With its strong international presence, Safran is well-equipped to support Preligens’ global expansion, particularly in the US market. In a related effort, Safran Electronics & Defense launched its Advanced Cognitive Engine (ACE) AI system on June 19. ACE is designed to incorporate AI across all Safran Electronics & Defense products, improving situational awareness, decision support, and reducing the cognitive burden on field forces.
The use of AI in defense and aerospace has seen significant growth in recent years. Notably, in February 2023, an AI agent successfully piloted Lockheed Martin’s VISTA X-62A fighter jet for over 17 hours at the U.S. Air Force Test Pilot School at Edwards Air Force Base, California. This milestone is seen as a precursor to the next generation of fighter jets, which may operate autonomously without human pilots.
