Engineeringfor Automotive, Aerospace & DefenseHow business models, operations, and culture should adapt to a constrained, collaborative, connected and intelligent world.INTELLIGENT INDUSTRYEXECUTIVESUMMARYThe threats of climate change, finitenatural resources, and threats tobiodiversity, along with rapidly emergingnew technologies mean that large,engineered products - such as cars, planes,and satellites - need to be reconceived to run on clean energy and use sustainable or recycled materials.In doing so, they need to improve the user experience, or these sustainable innovations will not be accepted. That means ensuring smooth, efficient, safe, and cost-effective transportation, with increasing automation and embedded intelligence.Engineering is being called upon to drive the needed innovation and scaled deployment of the key technologies to address climate change. Those who step up to the challenge will provide differentiators that secure their legacy, sovereignty, and revenues for years to come. But to get this right, the role of engineering will need to transform. ENGINEERING MUST ADAPT TO A RESOURCE CONSTRAINED WORLD, BOTH IN TERMS OF MATERIALS AND SKILLED RESOURCES.Value and differentiation will move from physical attributes toward intelligence and autonomy, where products become driven by software, data and embedded AI. Systems will make autonomous decisions about trajectories, routes, how to respond to the unexpected, and user comfort.AI and Generative AI will transform both the product functionality itself, e.g., the nature of machine interaction, but also bring productivity opportunities along the entire product development lifecycle.AI systems bring new changes and challenges in the safety-critical industry and are subject to concerns about ethics and trust. New sustainable designs will benefit from AI and foundation models through prompt engineering, fine-tuning, modeling and developing simulated test scenarios for validation.FUNDAMENTAL TO THIS IS THE MOVE FROM A SILOED WORLD TO A WORLD OF COLLABORATIVE DATA ECOSYSTEMS.ENGINEERING COMPANIES HAVE TO ACCESS AND INTEGRATE NEW SKILLS AND DATA-DRIVEN TECHNOLOGIES – FROM ADVANCED COMPUTING TO NEW MATERIALS. THAT MEANS COLLABORATING WITH A WIDE RANGE OF SUPPLIERS, PARTNERS AND START-UPS IS A KEY PREREQUISITE. It means multi-skilled engineering teams - physical and digital, in-house and outsourced - will join forces and work together on increasingly complex products.The new environment means close collaboration between engineering, manufacturing and after-sales to cover the product and service life cycles end-to-end. This demands new organizational structures and digital engineering technologies to enable secure collaboration, information sharing and real-time feedback. On top of that, majority of the boardrooms have Generative AI on their agenda, because they believe that it is accelerating product design and customer ...