AI and Digital Twins to drive next phase of aerospace growth

The global aerospace sector is advancing towards a hybrid model of automation, with AI and digital twins emerging as priority investments, even as supply chain agility continues to pose significant challenges, according to Tata Consultancy Services' Future-Ready Skies Study 2025.

The report, based on a survey of 323 senior executives across aerospace manufacturing, maintenance, repair and overhaul (MRO), and advanced air mobility (AAM) segments in North America and Europe, highlights the sector’s shifting priorities in design, production, and operational transformation.

While ambitions for automation remain high, only 40% of manufacturing operations are expected to run autonomously within five to seven years. Most companies foresee a continued need for human oversight, with Industry 5.0—where human-machine collaboration is central—gaining more traction than fully lights-out operations.

In the MRO segment, 64% of providers expect to realise measurable returns from predictive analytics and AI within five years. However, just 5% report that their digital strategies are currently scalable. The majority anticipate revenue and performance setbacks if scaling does not occur by 2028. Technologies such as digital twins, AR-guided workflows, and autonomous inspection robotics are being deployed to address these gaps.

Supply chain resilience remains a critical weakness despite digital investments. Only 28% of respondents—and just 18% of aerospace manufacturers—said they could pivot sourcing within 30 days of a Tier 1 disruption. MRO providers showed relatively better readiness at 39%. The study recommends building tier-N supplier visibility, deploying AI-powered control towers, and using simulation-led planning to improve agility.

Building Resilience with AI-powered Tools in Aerospace

The study found that AI and digital twins are seen as the most transformative technologies for aerospace manufacturing by 2035, ahead of robotics, quantum computing, and edge analytics.

While AI is already driving real-time decision-making, predictive maintenance, and risk management, digital twins are evolving from single-object simulations to enterprise-scale digital threads, integrating design, production, and service.

Taylor Brown, COO and Co-founder of Fivetran, said reliable and transparent data is the foundation that enables AI, digital twins, and next-generation intelligent operations in aerospace. He noted that enterprises able to automate and trust their data pipelines are the ones positioned to innovate at scale.

The survey reveals a strong start in digital thread implementation among aerospace manufacturers, with three-fifths of respondents (58%) indicating they have begun implementation to link product lifecycle data. This includes 48% with partially implemented systems and 10% reporting operational digital threads.

Todd Tuthill, Vice President, Aerospace and Defence Industry at Siemens Digital Industries Software, said the future of aerospace depends on integrating AI agents—digital engineers—with industrial engineering tools to close workforce gaps and reduce cycle times. “AI alone will not solve these problems,” he said. “They will be solved when human engineers are empowered by physics-based digital tools combined with agentic AI.”

Similarly, quantum computing is emerging as a long-term enabler for materials innovation, simulations, and logistics, ranking fourth among emerging technologies with transformative potential. Edge computing and cyber-physical control systems are also seen as critical to future aerospace factories, although widespread deployment remains limited.

The report also highlights growing interest in agentic AI for operational decision-making. While only 6% of respondents have fully deployed AI agents in their supply chains, 45% said they are willing to adopt such solutions once transparency and control frameworks are in place.

Blockchain has also gained traction in both MRO and AAM ecosystems, particularly for parts provenance and supply chain traceability. In the MRO segment, investments are being made in AR/VR for maintenance guidance, computer vision-based inspections, and additive manufacturing for on-demand spares. However, only 5% of MRO providers say their digital strategy is currently scalable, with 80% anticipating business impact if scaling fails by 2028.

As aerospace firms race toward operational maturity, AI and digital twins in aerospace will remain central to driving innovation and resilience at scale.