Palantir, Thales and startups competing to build FAA's predictive air traffic AI
The FAA is developing an AI system called SMART to predict air traffic conflicts up to two hours in advance, replacing the current 15-minute window. Palantir, Thales, and startup Air Space Intelligence are competing for the contract, each offering distinct technological and operational advantages. The initiative follows safety concerns highlighted by a runway collision at LaGuardia and is part of a broader $32.5 billion modernization effort. The system could launch in limited form later this year, though past FAA tech overhauls suggest challenges ahead.
- ▪The FAA's SMART system uses 4D modeling to predict airspace conflicts up to two hours before they occur, a significant extension from the current 15-minute window.
- ▪Palantir, Thales, and Air Space Intelligence are the three companies competing for the FAA contract, representing different approaches to government AI integration.
- ▪The project follows a March 2026 incident at LaGuardia Airport involving an Air Canada Express plane and a fire truck, which exposed controller overwork and outdated safety systems.
- ▪The FAA is replacing 612 radar systems, modernizing its NOTAM system, and hiring 1,200 new controllers in fiscal 2026 as part of a larger air traffic control overhaul.
- ▪Air Space Intelligence's Flyways AI already manages over 40% of US air traffic through airline partnerships, giving it real-world operational experience relevant to the SMART system.
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