The next competitive edge in aerospace in defense: AI-powered sustainment

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  • Insight
  • July 22, 2026

There’s a new equation for AI in A&D: Competitive advantage is shifting from program delivery to life-cycle performance, with AI-powered sustainment emerging as the primary driver of value.

Key takeaways:

  • AI-powered sustainment, not program delivery, is now the primary driver of competitive advantage and economic value in A&D.
  • Legacy tools and fragmented data systems can't handle today's complexity, leaving critical questions about long-term program profitability unanswerable.
  • AI-driven predictive modeling enables more precise pricing, risk allocation, and life-cycle cost forecasting under performance-based contracts.
  • Predictive maintenance transforms fleet availability in commercial aviation and delivers decision advantage and mission readiness in defense.
  • Success requires integrating ERP, EAM, and AI into a unified enterprise architecture where AI continuously learns from human experts.

For decades, aerospace and defense organizations have focused on program delivery as the primary measure of success. That equation is changing. As program execution grows more complex, delivery timelines stretch, and customers place a greater emphasis on long-term performance, sustainment expenditures consume an increasing share of life-cycle budgets and competitive advantage is shifting toward life-cycle performance.

When AI is integrated with enterprise resource planning (ERP) and enterprise asset management (EAM) systems across your organization, you can move beyond reactive decision-making to anticipate maintenance demand, identify program risks earlier, improve asset availability, and better manage long-term costs.

The result is stronger program profitability, greater operational readiness, and better life cycle performance. AI-powered sustainment can help organizations support performance-based contracts, secure margins, and make more informed decisions across the life cycle of complex aerospace and defense programs.

About this white paper

Developed in collaboration with IFS.ai, this white paper explores how AI-powered sustainment, predictive maintenance, and integrated ERP and EAM systems can help aerospace and defense organizations improve program outcomes and create long-term value.

The analysis examines the structural challenges affecting program execution, the growing importance of sustainment economics, and the role of predictive maintenance and AI-enabled enterprise systems in improving operational performance. It also explores how organizations can embed AI into the digital core to support more informed decision-making, stronger life-cycle management, and sustainable growth.

Read the full analysis

See why life-cycle performance is emerging as the next source of competitive advantage in aerospace and defense.

(PDF of 1.09MB)
Contributing authors:

Holly McKenzie, Partner, Aerospace and Defense Leader, PwC US
Chris Morton, Vice President, Industries, IFS

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Holly  McKenzie

Holly McKenzie

Partner, Aerospace and Defense Leader, PwC US

Ryan Hawk

Ryan Hawk

Global & US Energy and Industrials leader, PwC US

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