DOT awards AI contract for air traffic control modernization

By Oriana Pawlyk | 06/23/2026 12:35 PM EDT

Winning bidder Air Space Intelligence said the effort will mean “an entire new central nervous system” for the national air space.

A United Airlines plane takes off behind the air traffic control tower at San Francisco International Airport.

A United Airlines plane takes off behind the air traffic control tower at San Francisco International Airport in San Francisco on Nov. 6, 2025. Jeff Chiu/AP

The Federal Aviation Administration announced on Monday that software company Air Space Intelligence will lead an ambitious artificial intelligence-powered effort at the agency aimed at modernizing U.S. air traffic management.

The project, spearheaded by FAA Administrator Bryan Bedford, is intended to predict bottlenecks, delays and potential aircraft conflicts hours or even days in advance. The initiative, called the Strategic Management of Airspace Routing Trajectories, or SMART, comes as the fragile air traffic control system has experienced several major problems in recent years — including the deadly January 2025 crash over Washington and a runway crash earlier this year that killed two pilots at New York’s LaGuardia Airport.

“In many ways, we’re installing an entire new central nervous system for the national aerospace system, and that means that this technology will make it safer, will make it more efficient, will make it smarter for every American who flies,” a person familiar with ASI’s processes and systems told reporters on a call Monday. The person was granted anonymity to discuss the project as part of the call’s ground rules with reporters. “It’s going to be the world’s best air traffic management software — not the second best, but the absolute best.”

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Two other companies that had been in the running for the contract lost out — technology firm Palantir and Thales Group, a French-based aviation and defense firm. Palantir is involved in a separate effort to use AI in reducing close calls on runways and identifying other risks for flights.

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