UPS's AI Liftoff: Smart Tech Scans for Aircraft Parts Amid Crisis

The global aviation industry is increasingly turning to artificial intelligence (AI) to address significant challenges in aircraft maintenance, supply chain management, and workforce development. UPS, for instance, is actively exploring AI applications to identify alternative aircraft parts and streamline its supply chain processes. Lauren Purcell, an aircraft engineering manager at UPS, highlighted these initiatives at IFS Unleashed 2026, where discussions also included how Southwest Airlines and Japan Airlines are integrating AI into their maintenance operations. Constellation Research reported that these discussions spanned critical areas such as parts sourcing, maintenance troubleshooting, and technician training, acknowledging the inherent difficulties in leveraging operational data for AI applications.

Aircraft parts shortages and complex sourcing challenges have been a primary focus for UPS. Purcell indicated that finding alternative aircraft parts has been a key objective over the past year, with AI poised to play a crucial role. The company seeks to diversify its supply chain sources to gain an advantage in a volatile market. The aviation maintenance, repair, and overhaul (MRO) market reached over US$136 billion in 2025, marking an 8% increase from the prior year, according to Oliver Wyman's 2026 MRO survey. This growth is attributed to an aging global aircraft fleet necessitating more maintenance, alongside reliability issues impacting newer aircraft models. The survey also revealed that material cost inflation surpassed expectations by 100 to 200 basis points across various maintenance segments in 2025. Oliver Wyman identified several contributing factors, including persistent parts shortages, geopolitical instability, and increased spare parts inventories. A significant proportion of respondents, approximately 90%, reported tariff-related impacts, particularly on component purchases, repairs, and engine overhauls. The survey encompassed insights from over 150 aviation professionals, including airlines, maintenance providers, and aircraft manufacturers. Sourcing alternative aircraft components is further complicated by regulatory requirements. In the United States, the Federal Aviation Administration (FAA) issues Parts Manufacturer Approval (PMA), enabling manufacturers to produce approved replacement or modification parts for specific aircraft, engines, and propellers. The FAA meticulously maintains records of these approved PMA components and their applicable aircraft models. Furthermore, aircraft leasing agreements can impose restrictions, with some lessors requiring the removal of PMA parts before leased aircraft are returned, as noted in IFS’s December 2025 aviation outlook. UPS has not publicly disclosed whether its AI initiatives specifically involve identifying PMA components or other categories of alternative parts, nor has it shared details regarding the AI systems in use, their deployment status, or any measurable outcomes.

Beyond the realm of parts sourcing, the aviation industry faces a significant workforce shortage in aircraft maintenance. Experienced technicians are retiring, creating a critical challenge for operators: how to effectively train new replacements while simultaneously preserving invaluable institutional technical knowledge. UPS is exploring AI's potential to accelerate the training process for younger employees. Purcell stated that the company is enhancing its training methodologies through automation as seasoned technicians exit the industry. Oliver Wyman's 2026 MRO survey underscored this challenge, with approximately two-thirds of respondents finding it moderately to very difficult to recruit aircraft technicians and mechanics. Labor rate inflation has also remained elevated, settling at around 5.5% to 6% across most maintenance categories, significantly higher than the roughly 3% seen before the pandemic. Southwest Airlines is also investigating AI applications for maintenance troubleshooting. DJ Rounsoville, managing director of strategy and digital solutions at Southwest Airlines, acknowledged the industry's experience gap, noting that new mechanics might require up to two years to achieve full efficiency in troubleshooting. Panelists discussed how AI assistants could provide technicians with quicker access to maintenance documentation and technical knowledge amassed by experienced personnel, aiming to improve troubleshooting efficiency and reduce maintenance tasks carried over to subsequent shifts. IFS's December 2025 aviation outlook conceptualized potential AI troubleshooting assistants capable of retrieving maintenance manuals, service bulletins, and historical repair records. These applications could also pinpoint recurring faults and provide data on prior repair attempts, though IFS presented these as potential capabilities rather than confirmed deployments by UPS or Southwest. Rounsoville emphasized the crucial need to align workforce requirements with aircraft maintenance planning, cautioning that optimizing one without considering the other could lead to operational inefficiencies. Japan Airlines is adopting a similar strategy to refine its maintenance decision-making, with Sugimoto Kei, vice president of IT and digital promotion, focusing on empowering employees with better information access for faster, more informed choices.

The effective expansion of AI applications in aviation hinges on access to reliable operational data, which remains a significant hurdle. Oliver Wyman’s 2026 MRO survey found that 58% of companies were still in the experimental phase of AI development, a figure unchanged from the previous year. While approximately two-thirds of respondents reported that their AI initiatives were delivering value that met or exceeded expectations, Oliver Wyman pinpointed poor data quality and limited data availability as key obstacles preventing organizations from moving beyond proof-of-concept projects. Aircraft maintenance systems contain a wealth of information, including service histories, component records, and past repair details. These records are vital for training AI applications designed to identify recurring faults, retrieve troubleshooting information, and accurately assess maintenance requirements. Japan Airlines is proactively working to enhance access to such data. Kei, according to Constellation Research, explained that the airline's operational data is fragmented across disparate systems and not consistently available in enterprise datasets, prompting the company to invest in improving its data infrastructure. In June 2025, Japan Airlines initiated a project to implement IFS Cloud for Aviation Maintenance, slated to replace a maintenance management system that had been in operation for over 15 years, as per an IFS announcement. This planned cloud-based platform integrates aircraft, engine, and component maintenance management with spare parts inventory and supply chain operations. It is designed to offer capabilities such as predictive maintenance, real-time analytics, and workflow automation, although IFS did not confirm the deployment status of these specific features by Japan Airlines. Kei also highlighted supply chain disruptions as an ongoing challenge for aircraft maintenance, with Japan Airlines investigating how improved data availability and AI can bolster preventive maintenance and planning. Purcell from UPS reiterated the critical importance of established processes for maintaining reliable operational data, asserting that "You can’t have data integrity if you don’t have processes to actually use that data."