Farnborough International Airshow has long served as a signal for where the aerospace and defense industry is heading. In 2026, the message was clear: AI is moving deeper into the aerospace value chain.

For Arjun A. Sethi, Chief Growth Officer and Global Head, Public Sector, Aerospace & Defense and PE Practice at HCLTech, three trends stood out from the week: the industrialization of AI, the shift toward software-defined aerospace and the growing importance of security and resilience.

“Most of the conversation is around AI no longer being experimental, but how to industrialize its use in core processes, ranging from engineering and manufacturing to supply chain, MRO and resilient operations,” said Sethi.

That shift is important because aerospace and defense organizations are under intense pressure to improve production readiness, strengthen supply chain resilience, support more efficient maintenance and sustainment and bring new capabilities to market safely. AI is increasingly being viewed as a way to support those priorities across the full lifecycle.

The larger opportunity is to bring AI into the processes that shape how aircraft, platforms and systems are designed, manufactured, operated, maintained and improved over time.

That includes engineering, manufacturing, MRO and operations. In MRO, for example, HCLTech is already seeing strong uptake from its iMRO Digital Core, which supports more connected, intelligent and efficient maintenance operations.

Aerospace is becoming more software-defined

The second major trend is the increasing role of software and data in aerospace.

Modern aircraft, defense platforms and aerospace operations generate vast volumes of data across engineering, manufacturing, supply chain, operations and sustainment. The challenge is turning that data into a unified foundation for decision-making, transformation and AI adoption.

“Aerospace has become increasingly more software-defined,” said Sethi. “The industry is generating huge volumes of data and the ability to integrate and unify that data is now the call of the hour.”

That unified view of data is becoming essential. Without it, organizations risk building AI and digital transformation strategies on fragmented foundations. Engineering data may sit separately from manufacturing data. Supply chain signals may not connect effectively with operational priorities. Maintenance insights may not flow back into design, production or planning.

To move from AI pilots to enterprise-wide impact, aerospace and defense organizations need the right digital foundation.

In aerospace, that foundation must connect what Sethi calls the “triple bedrock” of the industry: engineering and design, manufacturing and operations. Each domain creates critical data. The value comes when that data can move across the enterprise and support decisions across the lifecycle.

“You need to have a connected data thread that binds all of that data and if you're able to do that, that is a key enabler,” said Sethi.

Trust, governance and regulation are central

Aerospace and defense is a highly regulated, safety-critical industry. That means AI adoption cannot be separated from trust, compliance and security.

As organizations put more data into cloud environments and embed AI into critical workflows, they need confidence in where data resides, how systems are governed and how AI decisions can be trusted. This includes sovereign cloud strategies, Responsible AI practices and stronger alignment between technology implementation and regulatory requirements.

“The second key enabler is embedding trust,” said Sethi. “This is a highly regulated industry. Everything from placing an organization’s data in a sovereign cloud to deploying Responsible AI is a fundamental enabler.”

Regulation is also evolving as new technologies and new categories of aerospace innovation emerge. Vertical takeoff systems, advanced air mobility and next-generation aircraft concepts are creating new questions for regulators and industry leaders.

For aerospace and defense organizations, this means timing is crucial. Innovation must move at pace, but it also must meet the requirements of regulators, customers and safety bodies. In this environment, AI and digital engineering should be designed with compliance, transparency and assurance in mind from the start.

Security and resilience are also becoming more important because of the geopolitical environment. Aerospace and defense organizations need to deliver assets on time, keep supply chains moving, protect sensitive data and bring products to market securely.

“With the geopolitical realities around us, providing assets on time, keeping supply chains moving and bringing products to market securely is becoming increasingly important,” said Sethi.