# FAA Invests $875M in AI Air Traffic Control

The Federal Aviation Administration (FAA) is advancing its air traffic control modernization by investing **$875 million** over 12 years in the AI-driven SMART (Strategic Management of Airspace, Routes, and Trajectories) software program developed by Air Space Intelligence. This initiative, announced in 2025, aims to enhance safety and efficiency by augmenting human controllers with AI capabilities such as traffic flow prediction and conflict detection, initially deploying in the Washington, D.C. area. Transportation Secretary Sean Duffy emphasized a cautious, human-supervised integration approach to balance innovation with regulatory safety, aiming to prevent overregulation that could hinder domestic technology development or drive companies overseas.

- **Why this matters:** This significant investment signals a major federal commitment to AI-enhanced air traffic management, creating opportunities for contractors specializing in AI, aviation software, and systems integration.
- Procurement professionals should note the phased deployment and emphasis on human oversight, which may influence contract requirements and evaluation criteria.
- Companies can prepare to engage in future FAA solicitations by aligning offerings with safety, regulatory compliance, and augmentation capabilities rather than full automation.
- The focus on preventing regulatory overreach suggests a procurement environment supportive of innovation balanced with operational safety, impacting vendor strategies and partnership models.

**Jurisdictions:** federal
**Industries:** Transportation, Information Technology
**Topics:** Artificial Intelligence, Regulatory Compliance, Digital Infrastructure
**Published:** September 17, 2026

### Government Entities
- Federal Aviation Administration (FAA)
- Department of Transportation (DOT)

### Vendors
- Air Space Intelligence (prime contractor)

### Key Quotes
> I need to make sure that I have regulations in place that keep people safe, but I also don't overregulate and I kill the small innovative companies, or the ones that are big enough they [leave] America and go somewhere else and take the technology, take the jobs with them.
> — Sean Duffy, Transportation Secretary

### Sources
- [AI for air traffic control won’t be like concerning advanced models, Transportation head says - Nextgov/FCW](https://www.nextgov.com/artificial-intelligence/2026/09/ai-air-traffic-control-wont-be-concerning-advanced-models-transportation-head-says/416023) - Nextgov/FCW
- [The FAA's plan to fix air traffic? $875M worth of AI | TechCrunch](https://techcrunch.com/2026/09/17/the-faas-plan-to-fix-air-traffic-875-million-worth-of-ai) - TechCrunch