Systems and methods for adjusting blade tip clearance targets and utilizing the adjusted targets to optimize the clearances between the blade tips and surrounding shrouds of a turbine engine are provided. In one exemplary aspect, one or more engine controllers utilize a machine-learned model to customize blade tip clearance targets based on the way an engine has been uniquely operated in the past for a particular flight mission. Present flight data associated with a present flight of a given flight mission is obtained. A model blade tip clearance target is adjusted based at least in part on the machine-learned model and the present flight data. The machine-learned model is trained at least in part on past flight data indicative of the manner in which the turbine engine has been operated for one or more past flights of the flight mission. An adjusted blade tip clearance target is then generated.