Rolls-Royce and the AI gold rush: how smart software is powering an unlikely comeback story
The British engine-maker's stunning recovery has many causes, and artificial intelligence tools are quietly becoming one of them. Here is what that means for the company's future.
Key points
- Rolls-Royce's share price rose roughly tenfold after chief executive Tufan Erginbilgiç took over, recovering from a collapse during the global aviation shutdown caused by Covid-19.
- Erginbilgiç stated publicly, approximately one year ago, that Rolls-Royce has the potential to become the most valuable company on the London Stock Exchange.
- The company operates across several high-value industries, which analysts say strengthens its long-term position.
- AI-driven tools for engineering, predictive maintenance and operations are increasingly part of how major aerospace and defence firms cut costs and win contracts.
Tufan Erginbilgiç made a bold claim about a year ago. The chief executive of Rolls-Royce, the British maker of large jet engines and power systems, said his company could one day top the London Stock Exchange's value rankings. Most people raised an eyebrow.
The scepticism was fair. During the Covid-19 pandemic, when global aviation froze almost overnight, Rolls-Royce burned through cash at an alarming rate. The share price cratered. The company looked, briefly, like a cautionary tale.
Then came the turnaround.
What actually changed?
Erginbilgiç, who took the top job in early 2023, cut costs, sold off non-core businesses and refocused the company on what it does best: making the enormous engines that power wide-body aircraft, and the systems that keep naval vessels and power plants running. The share price climbed around tenfold from its lows.
AI is part of this story, even if it rarely gets the headline. Aerospace and defence companies now use AI tools, meaning software that analyses large amounts of data to spot patterns a human engineer might miss, across a wide range of tasks. Predictive maintenance is one example: sensors on an engine send readings to an AI system, which flags a likely fault before it becomes a grounding problem. That saves airlines money and keeps Rolls-Royce's service contracts valuable.
Larger rivals and research groups have published work showing that AI-assisted design can shorten engineering cycles by months. For a company betting on next-generation engines, that speed matters.
Could it really reach the top of the London market?
Reaching the very top of the London Stock Exchange would require Rolls-Royce to keep growing while larger, longer-established companies stall. That is a high bar. But the company's spread across civil aviation, defence and power generation gives it several ways to grow at once, which analysts note is unusual for a manufacturer.
As reported by The Guardian, the idea no longer looks entirely fanciful. A company that was written off four years ago is now a serious conversation.
What should ordinary readers watch for?
If you work in aviation, defence or energy, Rolls-Royce's direction matters to your sector. If you invest in UK stocks, the company's run is a reminder that turnarounds do happen, but they rely on real operational change, not just mood.
Watch for how the company describes its use of AI tools in upcoming results announcements. Vague claims about "digital transformation" are easy to make. Concrete numbers tied to engine reliability or contract wins are the signal that the technology is actually working.
