Realizing augmented engineering: The role of AI and digital continuity

Aerospace and Defense (A&D) engineering is entering a new competitive era, driven by a confluence of heightened pressures. From geopolitical uncertainty to fragile supply chains, cybersecurity exposure, talent shortages, and the rise of software-defined products, organizations are faced with a new set of challenges that must be overcome to ensure they remain stable and competitive.

However, many organizations are lagging. 81% cite talent and skill shortages as a major threat to their operations, yet 46% feel ready to address it. Meanwhile, 65% are concerned about losing future program positions, workshare, or access to top engineering talent if they fail to adapt quickly.

Realizing augmented engineering: The role of AI and digital continuity in aerospace and defense transformation, a new report from the Capgemini Research Institute, highlights the important role that two mutually reinforcing capabilities are bringing to augment engineering and empower organizations. These are digital continuity and AI-enabled engineering. This report is based on original findings from a global survey of 200 A&D organizations, with two respondents per organization representing digital continuity and AI in aerospace and defense engineering functions, complemented by interviews with 10 industry experts.

The defining shifts in augmented engineering

Augmented engineering is moving to the heart of competitiveness

A&D organizations are turning to augmented engineering and AI-augmented software engineering to address talent shortages, protect program performance, and strengthen long-term competitiveness.

Digital continuity is foundational, but still limited

Only 6% have achieved end-to-end digital continuity. Most still rely on fragmented systems that hinder traceability, interoperability, and collaboration.

Despite accelerating, AI adoption is not yet scaling
Just 17% have integrated AI in aerospace and defense across workflows. Most deployments remain isolated to specific use cases. 

Engineering roles are changing faster than companies can react
Engineers are shifting toward oversight and decision-making, yet 68% of workers require reskilling and many organizations lack clear human-AI operating models.

Leadership requires integration, not just adoption
Only 10% of organizations combine advanced digital continuity with scalable engineering AI capabilities.

Stronger outcomes follow system-level integration
Combining digital continuity and AI drives gains in compliance, speed, cost efficiency, workforce effectiveness, and supply-chain resilience.

Seven actions for aerospace and defense leaders.

Strengthen engineering excellence with AI-enabled capabilities that help secure sovereignty and operational advantages.

• Build a connected engineering foundation that enables digital continuity across the lifecycle
• Redesign engineering around human-AI collaboration with clearly defined roles, processes, and accountability
• Establish closed-loop lifecycle learning by feeding operational and in-service data back into engineering
• Industrialize AI across workflows that are repeatable, measurable, and scalable
• Create an engineering decision intelligence layer to coordinate dependencies, manage risks, and measure performance
• Build the AI and compute foundation required to deploy AI securely and efficiently at scale
• Embed trust, quality, safety, and compliance by design across all AI-enabled engineering systems

This report is essential reading for senior leaders and C-suite executives at A&D organizations, as well as OEMs, suppliers, and MRO providers. This is particularly relevant for CEOs, CTOs, CIOs, CDOs, and Chief AI Officers/Heads of AI, in addition to those responsible for pushing engineering, data, and transformation agendas.

Explore how augmented engineering is making an impact in A&D by downloading the report.