BAE Systems partners with UK tech firm PAULEY for XR

BAE Systems has signed a two-year collaboration agreement with British technology consultancy PAULEY to dramatically advance military training using the power of Artificial Intelligence (AI) and Extended Reality (XR). The partnership was signed in September and shared with Calibre Defence in early October.

The partnership will see PAULEY’s cutting-edge immersive technology integrated into next-generation training programmes, aiming to equip military personnel with the specialist skills required to operate and maintain a wide range of assets, from frontline fast jets to complex uncrewed drones, while also preparing them for real-world operations.

The move formalises an existing working relationship, with PAULEY already supporting BAE Systems’ ground-breaking digital training initiative, Project OdySSEy. Project OdySSEy is BAE Systems’ vision for the future of collective military training. It is a single synthetic environment (SSE) designed to act as a highly realistic, cloud-based, virtual world—or a ‘military metaverse’. The project is designed to serve the UK’s military forces by enabling air, land, sea, space, and cyber forces to plug in and train together in complex, multi-domain exercises.

The collaboration aligns with evolving military strategy, which increasingly places advanced technologies like AI and XR at the core of future requirements, notably in documents such as the UK’s Strategic Defence Review.

Philip Pauley, founder and CEO of PAULEY, expressed pride in the new agreement, stating: “We are proud to be working alongside BAE Systems to help ensure the military forces of the future are ready for their mission in an increasingly complex and rapidly changing world.” He emphasised that the combined expertise of agile SMEs like PAULEY and the deep experience of BAE Systems would effectively harness the potential of these exciting technologies.

Company profile: PAULEY

PAULEY is a UK-based technology consultancy that specialises in Extended Reality (XR) solutions, a catch-all term that includes virtual reality (VR), augmented reality (AR), and mixed reality (MR). The company focuses on designing and developing data-driven spatial visualisations and AI avatars for corporate training, maintenance, and operations management across safety-critical industries, including defence and national infrastructure. Founded and led by CEO and futurist Philip Pauley, the firm’s expertise lies in creating immersive digital environments that can accurately mirror real-world assets (Digital Twins) to deliver innovative and effective training simulations.

Calibre comment

What is a synthetic environment? And why are they so useful? A synthetic environment is a computer-generated world that simulates real-world scenarios. It’s like a virtual reality experience, but often used for more practical purposes. These environments can be as simple as a virtual room or as complex as a simulated city or battlefield.

 A typical use case is for battle simulation and training as they can allow a large force to train together without the safety restraints that they would face in the real world. PAULEY is providing virtual reality and AI agents that can make training scenarios more realistic and unpredictable. Other companies working on the project include Hadean, Moody, and Deloitte. 

By Sam Cranny-Evans, published on October 3, 2025. Credit for the lead image is BAE Systems.