The Federal Aviation Administration (FAA) is moving forward with a significant initiative to modernize the nation's air traffic control system through the integration of artificial intelligence (AI), a program named Strategic Management of Airspace Routing Trajectories, or SMART. This effort, spearheaded by FAA Administrator Bryan Bedford, seeks to revolutionize how air traffic is managed by transitioning to a centralized, cloud-based software system capable of predicting traffic flows and adjusting departure times to mitigate conflicts.
The FAA has selected three companies—Palantir Technologies, Thales SA, and Airspace Intelligence—to compete for the contract to develop this groundbreaking AI-powered platform. Each firm brings distinct experience to the table. Thales SA boasts over 85 years of history in supplying air traffic management systems to both the FAA and the Department of Defense, with its equipment powering more than 99% of instrument landing systems at American airports. Palantir Technologies, a data analytics firm with a strong background in federal contracting, has already secured a foothold within the agency. On April 9, the FAA Logistics Center issued a sole-source justification for a data modernization and AI integration project, citing Palantir as the only responsible source capable of delivering the work without unacceptable delays. Palantir subsequently confirmed this contract to investors, stating it would deliver a data analytics tool to support the FAA's aviation safety modernization objectives.
Transportation Secretary Sean Duffy publicly unveiled the SMART program at a Semafor World Economy Summit event, highlighting its potential to dramatically expand the planning horizon for air traffic controllers. Secretary Duffy explained that the new software would be able to notify controllers to adjust flight paths "an hour and a half or two hours before the conflict even happens," a significant leap from the current roughly 15-minute planning window. He further elaborated in a CBS News interview, stating that SMART could identify and resolve scheduling conflicts as far as 45 days in advance, making minor adjustments to departure times—sometimes as little as five to ten minutes—to prevent delays before passengers even arrive at the gate.
A crucial aspect emphasized by Secretary Duffy is that the AI software will not replace human controllers in managing airspace. This point was reinforced by Nick Daniels, President of the National Air Traffic Controllers Association (NATCA). Daniels clarified the role of SMART, stating, "Humans will separate airplanes. Humans will be responsible for human lives. What we haven’t had is a system that helps us manage the [NAS] before the day even begins." He added that the tool would empower controllers by giving them more time to focus on critical situations, such as emergencies, aircraft running low on fuel, or approaching weather systems.
The financial scope of this modernization effort is substantial. Congress has allocated $12.5 billion towards the overall air traffic control overhaul, but the FAA estimates that an additional $20 billion will be required to complete the project, bringing the total estimated cost to approximately $32.5 billion. Beyond the AI platform, the comprehensive modernization program includes the replacement of 612 aging radar systems and the hiring of around 1,200 new controllers during fiscal year 2026. Officials indicate that the SMART system could become partially operational before the end of the current year, while the competition among Palantir, Thales, and Airspace Intelligence for the primary contract continues. The Bloomberg NewsWire reported on April 26, 2026, that the FAA was considering partnering with Palantir on the AI tool for air traffic control.
This initiative represents a pivotal moment for the future of air travel in the United States, aiming to enhance safety, reduce delays, and improve the efficiency of one of the world's busiest airspaces through advanced technological solutions.
