Technology, AI and the Next Cycle
By ISTAT Staff
14 April 2026

While much of the discussion at ISTAT Americas, held 8-10 March 2026 in San Diego, centered on near-term pressures — from fuel prices to supply chain disruption — several sessions turned to a longer-term question: how quickly new technologies will reshape the industry.
Across panels and presentations, the message was that innovation is advancing, but operational realities are setting the pace.
AI Moves From Concept to Application
In his “Economist’s View” session, Adam Pilarski, president of AVITAS, pointed to artificial intelligence as one of the most visible areas of progress but emphasized that its impact is already being felt in practical ways.
“It is already used in our industry for remote monitoring and diagnostics, predictive maintenance, flight records collection and standardization, and training support,” he said.
At the same time, Pilarski noted the scale of investment flowing into the space: “40% of total investment goes into AI.”
But he also outlined a range of open questions, from potential labor disruption to concerns about reliability and “hallucinations,” underscoring that while AI is gaining traction, its long-term impact is still being defined.
Technology as a Solution — If Implemented Correctly
That balance between opportunity and risk was echoed in the “Risk Management in a Volatile World” panel.
An audience poll found that 89% of respondents view technology as a solution, compared with just 11% who see it primarily as a risk.
Still, speakers stressed that outcomes depend heavily on how technology is deployed. Christine Boucher, deputy general counsel and chief compliance officer at Delta Air Lines, said, “If you just take off without the right governance, there’s a lot of risk associated.”
Rather than replacing existing processes, technology is increasingly being layered into operations, requiring new controls, oversight and internal discipline.
Hydrogen, AI and the Importance of Ecosystem Readiness
During a Fireside Chat, Robin Hayes, chairman and CEO of Airbus in North America, addressed several emerging technologies, including hydrogen-powered aircraft and AI-enabled flight systems.
On hydrogen, Hayes pointed to the need for broader coordination across the industry. “We need to make sure it’s available,” he said. “Slowing down to speed up again. We’re still doing a lot of work and research. We’re also working with the ecosystem of airports and other providers to make sure we’re building this together.”
He also highlighted the potential role of AI in future aircraft. “We see a big opportunity as we think about the next gen of airplane to have AI support for the pilots.”
At the same time, Hayes suggested that timelines for new technologies will be measured rather than immediate. On urban air mobility, he said: “I think we’ll see eVTOLs in service somewhere over the next four to five years.”
New Technology, Familiar Challenges
Even as new technologies develop, speakers highlighted that many of today’s challenges stem from earlier innovation cycles. Pilarski pointed to engine development as a key example, arguing that some of the current issues were foreseeable. “The supply chain and engine problems could have and should have been predicted. We did this to ourselves,” he said.
He noted that the push for greater fuel efficiency — driven by both environmental priorities and fuel price expectations — has introduced new trade-offs. “The new products operate at a higher temperature, so are not as robust. They will not attain 20,000 cycles time on wing,” he said.
The result is a more complex operating environment, where improvements in efficiency are balanced against durability and maintenance considerations.
A More Deliberate Path Forward
Across sessions, speakers returned to a common theme: While innovation remains critical, the industry is taking a more measured approach to adopting new technologies.
Hayes framed this in the context of future aircraft development: “The timing challenge is how many new technologies do you want to bring to market when you have an industry that has had challenges over the past few years with new technologies?”
That caution reflects broader constraints — from supply chain limitations to certification requirements — that continue to shape how quickly new ideas can move from concept to commercial reality.
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