In space, the Space Force’s Data and AI FY2025 Strategic Action Plan prioritizes enterprisewide data or AI governance; a data- and AI-driven culture and workforce; rapid adoption of analytics and AI tech; and deeper government, industry, and academia partnerships.5
In mission systems, AI is being trialed for autonomous mission planning, real-time collision avoidance, and geospatial targeting.6 Both government and private organizations are exploring agentic AI for tasks such as operational planning, situational simulations, and autonomous navigation. The US DoD has awarded contracts to four leading US AI companies to accelerate AI adoption across critical mission areas for key defense priorities.7 However, regulatory ambiguity and certification requirements continue to slow broader adoption, particularly for mission-critical applications.
Commercial aviation is leveraging AI for scheduling flights, managing crew, and enhancing passenger experience. Meanwhile, aftermarket companies are piloting AI-driven maintenance diagnostics and predictive health for equipment, inspection, and inventory optimization.
A&D manufacturing presents a more complex challenge due to the stringent safety requirements, reliance on legacy systems, and the high cost associated with potential failures. Nonetheless, investment prospects remain strong. According to an International Data Corporation forecast, US A&D spending on AI and generative AI is expected to reach US$5.8 billion by 2029, 3.5 times higher than 2025 levels.8
While pilot programs in AI-powered defect detection and automated inspection are underway, scaling these solutions remains difficult. The push to increase production rates, especially for munitions and aerospace components, may accelerate experimentation, but full-scale industrialization is unlikely in the near term.
By 2026, agentic AI is expected to progress from pilot projects to scaled deployments, with the most visible advances occurring in the decision-making, procurement, planning, logistics, maintenance, and administrative functions.
