In August 1966, Dirección Nacional de Fabricación e Investigación Aeronáutica (DINFIA), the Argentine state aircraft factory began development of the AX-2, a Counter-insurgency (COIN) aircraft to meet a requirement of the Argentine Air Force. The project was promoted by engineer Ricardo Olmedo and became under the guidance of engineer Aníbal Dreidemie, who also designed the IA-52 Guaraní II and the IA-63 Pampa. The chosen layout was a low-wing monoplane powered by two turboprop engines mounted in wing-mounted nacelles and fitted with a T-tail. In order to test the proposed layout, DINFIA first built a full-scale unpowered glider test vehicle, which flew for the first time on 26 December 1967.