What you wrote is what I would have guessed. Are you also guessing or do you know for sure? It sounds right, but I'm very curious about the actual answer to this question.
I don't work in the industry, but I have the training, and can confirm what he said. No AI or ML. We use a combination of closed-form solutions and deterministic numerical analyses. There is no actual need for AI or ML in this problem domain, outside of perhaps the design phase. Sometimes dynamic programming and some ML techniques are used when, I dunno, figuring out the best configuration for an antenna or profile of a nozzle. But flight dynamics and control do not need AI, as the physics are well-understood.