WEBVTT

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- I'm Georgie Frost here
at the Farnborough Airshow,

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talking to BCG's experts about how AI

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is reshaping the aerospace
and defense industry

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and exploring what it takes to scale AI

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from pilot to performance.

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- A lot of companies are stuck

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in the proof-of-concept phase.

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I think 65% have some
sort of proof of concepts

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that are never moving
to actual utilization;

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that's driving bottom-line impact.

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Actually, what we've seen is the companies

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that are most productive

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are the ones with half as many pilots,

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and they end up with twice-as-big ROI.

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And that's because they focus first

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on their biggest strategic problem,

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how to use AI and plug into that,

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and then how to incorporate
that into the workflows.

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- I think it requires ambition.

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A recent BCG study we did

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found that 65% of companies
in aerospace and defense

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are struggling to move
from pilots and use cases

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to value delivered at scale.

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There's the subset of companies

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that are doing really small chatbots,

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what we would call deploy,

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versus the few that are really shining

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that have jumped in

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and fully reshaped their functions.

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- Well, in Europe, the path
from pilot to operational impact

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is very much constrained today.

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It's constrained by sovereignty,

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it's constrained by very
fragmented digital infrastructure,

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and by regulatory environment.

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Only 40% actually of the
digital infrastructure today

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runs on the cloud,

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but that's very self-limiting today

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for European defense.

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In our view, the company
that's set for success

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embeds those requirements
of sovereignty and safety

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from the very beginning.

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And that's, in our view, the path to go.