What AI adoption challenges are slowing progress for A&D organizations?

A&D executives cite the inability to deploy AI at a competitive pace (29%), uncertain ROI (29%), and increased third-party risk (27%) as their top hurdles. Many organizations also struggle with integration and workforce readiness, making it difficult to scale AI beyond early pilots. Protiviti helps organizations implement responsible AI frameworks and operational strategies so AI delivers sustained, enterprise-wide value.

What cybersecurity risks should A&D leaders prepare for in 2026?

Cyber threats are the #1 near-term risk for the A&D sector, driven by CMMC requirements and rapidly advancing, state-sponsored attack tactics. These attacks increasingly target intellectual property, supply chains and critical systems using methods such as zero-day exploits and AI-enabled reconnaissance. Protiviti helps organizations strengthen cyber resilience, improve third-party oversight and meet evolving regulatory expectations.

Where are aerospace and defense executives planning to invest most in the next two to three years?

The top investment areas include data privacy (48%), cybersecurity (42%) and infrastructure modernization (36%), reflecting the sector’s focus on safeguarding sensitive information and enabling advanced technology. These priorities support improved resilience, readiness for AI and compliance with expanding global regulations. Protiviti helps A&D organizations turn these investment areas into measurable improvements in performance, security and operational agility.

What long-term risks should A&D executives prepare for as they plan the next decade?

The top 10-year challenges include long-term security and privacy concerns (58%), evolving AI deployment risks (41%) and increasing sustainability requirements (38%). These areas reflect expanding regulatory expectations and the growing complexity of autonomous systems and digital platforms.

Top Risks 2027: Aerospace & Defense Insights

Q: How can aerospace and defense organizations modernize legacy systems without disrupting operations?

Legacy IT infrastructure is one of the industry’s most pressing challenges, limiting data accessibility, slowing AI‑driven analytics and creating operational and security gaps. With 36% of A&D leaders prioritizing infrastructure modernization, organizations are seeking ways to improve performance while supporting emerging technologies. Protiviti supports A&D organizations in modernizing technology foundations so they can reduce risk, improve reliability and accelerate innovation.

5 min read

Top Risks 2027: Aerospace & Defense Insights

2027 Executive Perspectives on Top Risks and Opportunities

For aerospace and defense leaders, risks rarely show up one at a time. Technology disruption, regulatory uncertainty, geopolitical instability, supply chain constraints, aging infrastructure and workforce gaps are converging, testing the ability to modernize, protect sensitive assets and deliver on mission-critical commitments. Protiviti's 2027 findings show leaders are far more prepared for planned change than for sudden policy shifts, trade restrictions or emerging threats. They're investing in cybersecurity and infrastructure modernization to build a secure foundation for what comes next. Read the aerospace and defense brief to see how leaders are modernizing without sacrificing mission resilience.

Explore the 2027 aerospace and defense insights

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Where aerospace & defense leaders see the greatest growth opportunities over the next two to three years

Aerospace and defense leaders still see growth ahead, but they're more selective about where it will come from. Rising defense spending favors organizations aligned with emerging technologies and mission priorities, while partnerships help accelerate innovation and expand capacity.

63 %

see significant opportunities to grow revenue.

64 %

see significant opportunities to expand strategic alliances and partnerships.

55 %

see significant opportunities to grow beyond their headquarters' domestic market.

Explore featured solutions and industries

Modernizing without sacrificing mission resilience depends on secure systems, a modern technology foundation and AI built with the right governance. These capabilities help A&D leaders protect sensitive assets while preparing for what comes next.

Artificial Intelligence (AI)

Prioritize, build and embed AI in real workflows, with governance, security and change enablement that help teams adopt it responsibly and deliver measurable value.

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Technology

Modernize infrastructure and applications across cloud, ERP, data and cybersecurity, connecting technology strategy to execution when legacy systems limit growth.

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Cybersecurity

Protect data and critical assets across every layer of the organization, from cloud and identity to incident response, so sensitive information stays secure.

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Aerospace & Defense

Strengthen cyber resilience and compliance, improve supply chain and operations, and modernize technology, data and AI for mission-critical environments.

Learn more

Artificial Intelligence (AI)

Prioritize, build and embed AI in real workflows, with governance, security and change enablement that help teams adopt it responsibly and deliver measurable value.

Learn more

Technology

Modernize infrastructure and applications across cloud, ERP, data and cybersecurity, connecting technology strategy to execution when legacy systems limit growth.

Learn more

Cybersecurity

Protect data and critical assets across every layer of the organization, from cloud and identity to incident response, so sensitive information stays secure.

Learn more

Aerospace & Defense

Strengthen cyber resilience and compliance, improve supply chain and operations, and modernize technology, data and AI for mission-critical environments.

Learn more

Discover our full catalog of insight briefs for additional research findings and expert commentary related to the 2027 report on Top Risks and Opportunities.

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FAQs

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Where do aerospace and defense leaders see the greatest growth opportunities?

Strategic alliances and partnerships lead, with 64% seeing significant opportunity, followed closely by revenue growth (63%) and expansion beyond their domestic market (55%). Rising defense spending is creating opportunity, particularly for organizations aligned with emerging technologies and mission priorities. Partnerships help A&D companies accelerate innovation and expand capacity. Delivering on that growth, though, means working within long program cycles, restricted supply chains and workforce gaps.

What are the top risks for aerospace and defense companies in 2027?

Disruptive innovation leads at 3.66 on a five-point impact scale, up sharply from 2.90, driven by AI, drone proliferation and rapid changes in warfare. Regulatory change (3.56), limited access to technology skills (3.50), legacy infrastructure (3.49) and geopolitical instability (3.49) follow. No single risk defines the outlook. Technology can alter mission requirements, regulation can reshape investment decisions, and geopolitical shifts can constrain supply, all at once.

How can aerospace and defense organizations modernize legacy systems without disrupting operations?

Legacy infrastructure ranks among the industry's top five near-term risks at 3.49, and infrastructure modernization is the second-highest investment priority at 42%. Many A&D companies carry technical debt from acquisitions, disparate systems and delayed ERP upgrades, and advanced security is difficult to deploy on aging platforms. Modernizing creates the foundation for stronger security, better use of data and the integration of emerging technologies, but long program cycles mean it has to be planned around mission commitments.

What are aerospace and defense leaders' top priorities for AI?

Workforce readiness leads at 48%, followed by integrating AI with existing technologies, processes and people (43%), governance and accountability (35%) and protecting sensitive data used to train and run models (31%). In a sector facing retirements and scarce technical talent, AI can help a fixed or shrinking workforce do more, but only if employees know how to use it and trust its role. Governance must also reflect classified information and controlled technical data.

What long-term risks should aerospace and defense executives prepare for over the next decade?

Security and privacy lead at 53%, followed by AI deployments (46%, up from 41%), geopolitical challenges (37%) and supply chains and third-party ecosystems (33%). AI could change how platforms are designed, operated and defended, and geopolitics can determine where companies source, manufacture and sell. Quantum computing is still low at 12% but has tripled from 4%, and long-lived systems give A&D organizations reason to assess post-quantum exposure early.