The aviation and aerospace sector is experiencing a dramatic leap forward this month, fuelled by transformative AI initiatives across manufacturing, MRO, sustainability, and next-generation aircraft development.

Bold Moves in Aerospace Manufacturing and Green Technology

At the 2025 Paris Air Show, the UK government unveiled a £250 million package aimed at boosting advanced aerospace manufacturing—particularly in zero‑emission propulsion, hydrogen systems, lightweight composites, and AI‑powered avionics and production techniques. Supported by Airbus, Rolls‑Royce, and a network of SMEs and research institutions, these investments boost the country’s position as a leader in clean aviation and industrial innovation  .

Mindful of climate targets, the focus is squarely on AI‑driven R&D to reduce carbon emissions and operational costs—integrating gas turbines, hydrogen actuation valves, and AI systems for autonomous or hybrid eVTOL platforms ().

AI‑Powered MRO Transformation

Maintenance, Repair, and Overhaul (MRO) providers are rapidly adopting AI. Lufthansa Technik has launched a state‑of‑the‑art training centre in Portugal, training technicians to support AI‑augmented diagnostics; Japan Airlines is integrating IFS Cloud’s AI‑based predictive maintenance system into its operations  .

Fueling the broader trend, MRO players like Jet Aviation are deploying AI‑equipped drones to inspect aircraft, with IDC predicting over 20% of MRO shops will leverage AI this year  .

Cutting‑Edge Aircraft Developments

A new business jet, Otto Aviation’s Phantom 3500, emerged from the Paris Air Show with an “AI‑driven, transonic super‑laminar flow” design. Offering a see‑through digital cabin and up to 60% less fuel burn—90% with sustainable aviation fuels—the plane targets first flights in 2027 and entry into service by 2030  .

Concurrently, Articul8, an Intel‑backed generative AI startup, debuted an aerospace platform at Paris designed to think “like an aerospace engineer” to optimize design and manufacturing processes across the lifecycle  .

Autonomous Flight, Avionics, and Supply‑Chain Intelligence

Electrifying the skies, Archer Aviation advanced to piloted flight tests for its Midnight eVTOL aircraft, signalling progress toward urban air mobility services first envisaged for certification in 2025  .

Collins, under Honeywell’s umbrella, continues expanding AI‑powered avionics suites that integrate cloud‑connected systems like Anthem and FlightAware Foresight—slashing ETA errors by up to 50%, improving routing precision, and boosting safety through predictive maintenance  .

Global Supply Chain Shifts and Ecosystem Innovation

Western aerospace giants—Airbus, Pratt & Whitney, Rolls‑Royce, Collins—are increasingly sourcing components from India, diversifying production away from pandemic‑stressed supply lines  .

Meanwhile, startups in smart factory tech like Altair demonstrated AI‑powered engineering optimization—from structural weight reduction and digital‑twin simulation to real‑time production line analytics  .

This wave of AI integration is reshaping aerospace from ground‑up—transforming how jets are designed, manufactured, maintained, and flown.