Opinion: How Generative AI Could Boost Aerospace In The 2020s

Here’s to a promising year in the aerospace industry, driven by record commercial aircraft deliveries, a steady increase in airline passenger traffic and a strong maintenance, repair and overhaul (MRO) sector. There is a good chance the industry will reach pre-pandemic revenue levels by mid-2024.

This recovery is remarkable considering macroeconomic conditions. Across the globe—from the Asia-Pacific region to Europe and North America—signs of growth are strong. An Asia-Pacific recovery appears to be leading slightly, driven by MRO activities and increased production in China.

But alongside optimistic growth projections, supply chain issues are still front and center as a top concern for industry leaders this year.

Accenture found that commercial aerospace and defense companies missed out on $41 billion in additional revenues over the last couple of years due to disruptions in engineering, supply, production or operations.

Additionally, rising production costs, particularly in raw materials and labor, pose challenges. Aerospace executives Accenture surveyed expect further increases in raw material costs over the year, with labor costs also anticipated to rise. In the next six months, executives are concerned about interest rate changes, and they have longer-term concerns about the increasing risks of climate change and political instability.

There is hope, though, for addressing some of these constraints through the adoption of generative artificial intelligence. This breakthrough technology is expected by C-suite aerospace executives to be transformative for their organizations.

The integration of generative AI is seen as a way to increase market share and drive innovation. Eighty-one percent of aerospace executives Accenture surveyed expect generative AI to yield business benefits within the next three years. They are exploring use cases in which generative AI can deliver value, with a particular focus on strengthening supply chain resilience, optimizing production processes, enhancing the customer experience and reducing costs. However, concerns about ethics, trust, data governance and legality need to be addressed to fully capture the benefits of generative AI.

Despite challenging macroeconomic and geopolitical conditions, the aerospace industry is set to achieve revenues in 2024 not seen since before the pandemic. While supply chain and other issues persist, technologies such as generative AI can be a useful tool to help tame volatility so companies can focus on execution and delivery. Aerospace is a resilient industry that should continue to be optimistic about its future in the year ahead.

John Schmidt is Accenture’s Aerospace and Defense industry lead.