The Federal Aviation Administration (FAA) has selected Palantir Technologies Inc. as a finalist in a high-stakes competition to develop a new artificial intelligence tool for the modernization of the United States air-traffic control system. According to statements made by Transportation Secretary Sean Duffy during a conference in Washington, Palantir is competing alongside Thales SA and Air Space Intelligence Inc. to build the core software for the Strategic Management of Airspace Routing Trajectories (SMART) program. The initiative is part of a broader $32.5 billion infrastructure overhaul aimed at replacing decades-old technology and enhancing the safety of the national airspace.
The SMART program is designed to fundamentally change how flight paths are managed by extending the window for conflict prediction. Currently, air-traffic controllers operate within a planning window of approximately 15 minutes. The AI-powered systems under development would utilize high-fidelity 4D modeling to identify potential bottlenecks and flight conflicts up to two hours in advance. Secretary Duffy explained that the software will allow the FAA to proactively adjust flight paths and reduce congestion before aircraft depart, rather than reacting to issues as they arise in real-time. Additionally, the system is expected to provide automated safety alerts when aircraft trajectories indicate a risk of proximity violations.
FAA Administrator Bryan Bedford has identified the SMART initiative as a central pillar of the agency’s modernization strategy. The program arrives as the FAA works to replace 612 outdated radar systems and manage a significant increase in flight demand. While Congress has already allocated $12.5 billion for these upgrades, the FAA has indicated that an additional $20 billion in funding will be necessary to fully execute the technological transformation. The agency has hired nearly 1,200 new air-traffic controllers in fiscal 2026 to date, meeting roughly half of its annual recruitment target as it prepares for the integration of these new AI tools.
For Palantir, the FAA project marks a major expansion of its civilian government footprint. The company, which has traditionally focused on defense and intelligence contracts, has seen rapid growth in its government segment, with revenue in that category increasing 70% year-over-year in the final quarter of 2025. Palantir’s 2026 revenue guidance is approximately $7.2 billion, supported by large-scale agreements such as a $10 billion ceiling-value contract with the U.S. Army reached in July 2025. The FAA’s consideration of Palantir’s Artificial Intelligence Platform (AIP) follows the company’s existing aviation partnerships, including its work with Airbus on the Skywise data platform.
The FAA is expected to provide further details regarding the technical specifications and implementation timeline of the SMART program at a scheduled press event on April 21, 2026. Officials have stated that the AI system could be operational in a limited capacity by the end of the current calendar year.