[1][2] Rather than competing for the contract, Aeritalia (now Alenia Aeronautica) and Aermacchi agreed to produce a joint proposal for the requirement, as both firms had been considering the development of a similar class of aircraft for some years.

In July 1981, the Italian and Brazilian governments agreed on joint requirements for the aircraft, and Embraer was invited to join the industrial partnership.

[4] In the early stages of development, various different powerplants and engine configurations were studied to power the type; both twin-engine and single-engine approaches were considered.

[2] Key features that were reportedly emphasised in the design process of the new aircraft were accessibility and survivability; the AMX had to be able to sustain a single failure to any onboard system without any performance degradation.

[1] A total of seven flight-capable prototypes were produced for the test program, three by Aeritalia, two by Aermacchi, and two by Embraer, as well as two static airframes.

[7] Deliveries of production aircraft to Italy began in 1988,[5] the first units were delivered to the Brazilian Air Force during the following year.

It is composed primarily of aluminium and manufactured using traditional construction methods, however elements such as the tail fin and elevators use carbon fibre composite materials.

Manual reversion is provided for the ailerons, elevator and rudder to allow the aircraft to be flown even in the event of complete hydraulic failure; either control system can act independent of one another.

The spoilers can function as airbrakes and to negate lift; improving take-off and landing performance as well as manoeuvrability during flight.

During the aircraft's development, the Spey was heavier and less modern than some of the available alternatives, but it was considered to be reliable, relatively cheap and was free of export restrictions that would be imposed by using American engines.

[9] AMXs in Brazilian service are often fitted with one of three pallet-mounted sensor packages, which contain various vertical, oblique, and forward-facing cameras, for performing the aircraft's secondary aerial reconnaissance role.

Italian aircraft are fitted with a M61 Vulcan 20 mm rotary cannon on the port side of the lower fuselage.

[9] The United States denied the sale of the M61 to Brazil, thus its AMXs are instead fitted with two 30 mm DEFA 554 revolver cannons.

[21] In the late 1990s, AMX International was considering a major engine refit; a non-afterburning variant of the Eurojet EJ200 was proposed, with considerably more thrust than the existing powerplant.

[22] In 2005, the Italian Air Force launched an upgrade programme (ACOL Aggionamento Capacità Operative e Logistiche – Operational and Logistical Capability Upgrade) for 55 of its AMXs,[23] adding a new laser INS, new cockpit displays and allowing the aircraft to drop Joint Direct Attack Munition guided bombs.

The conflict saw the first use by AMX aircraft of Litening targeting pods paired with Paveway and JDAM guided bombs.

[28] In early 2016, due to the declining stability of Libya, Italy opted to station additional aircraft, including four AMX fighters, at Bassi Airbase, Trapani, Sicily.

This was intended to provide trainee pilots with experience on fast jets, while still retaining the single-seater's attack capabilities.