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FAA to Pilot AI Air Traffic Tool Smart Under USD 875 Million Contract

Published: Updated: By 24TopNews Editorial Desk

The Federal Aviation Administration is preparing to launch Smart, an AI-driven air traffic management tool, as early as late September 2026 in one of the busiest United States air corridors. The software, developed by Air Space Intelligence under a 12-year, USD 875 million government contract awarded earlier in 2026, will first be piloted in the Washington, D. C. area before expanding nationwide. It aims to cut delays and cancellations and identify alternative routes during disruptions.

The Federal Aviation Administration is preparing to introduce an artificial intelligence-driven air traffic management tool, with deployment possible as early as late September 2026 in one of the busiest air corridors in the United States. The software, called Smart, is designed to help the FAA and airlines reduce flight delays and cancellations and to find alternative routes when disruptions unsettle air operations. The system will first be piloted in the Washington, D. C. area and then gradually expanded across the country. Smart, short for Strategic Management of Airspace, Routes and Trajectories, can analyze airline flight schedules and, taking into account factors including weather conditions, airport runway capacity and operational constraints, forecast future air traffic flows and identify potential conflicts in advance.

Under the plan, once it fully covers United States airspace, the system will become a core tool akin to a brain for the country's air traffic control system. Earlier in 2026, software developer Air Space Intelligence received a 12-year contract worth USD 875 million from the United States government to develop the Smart system and a companion system. The Trump administration has in recent years spent billions of dollars to upgrade the country's aging air traffic infrastructure and introduce more modern technology. At the same time, the government is expanding air traffic controller recruitment and strengthening training. For a long time, staffing shortages at air traffic control agencies have been one of the important causes of flight disruptions.

FAA officials have been discussing with airlines how to coordinate flight scheduling, which is part of the Smart rollout plan. Questions remain within the aviation industry about how the system will operate, especially given intense competition among airlines, all of which want to secure prime-time flight slots, making flight coordination a challenge. FAA Administrator Bryan Bedford said at a Senate hearing earlier in 2026 that the FAA needs to take charge of overall coordination rather than letting commercial airlines arrange flights according to their own plans.

Before the software is validated and its functions gradually expanded, the system was already planned to take the form of a limited-scope pilot. Smart's functions are scheduled to be further extended to higher-level flight coordination, including strategic planning of flight schedules and trajectories before aircraft take off. At present, the system will mainly be used as a decision-support tool when air operations problems arise. The federal government also plans to establish a central operations office for the system at the United States Department of Transportation headquarters on September 21, 2026.

24TOPNEWS IMPACT INTELLIGENCE

Why this event matters

The event has a measured impact on 3 industrys. The strongest current signal is positive for Air Transport, with intensity 55/100 and 60% confidence over a medium term horizon.

Transport & Logistics · 15.4

Air Transport

Direction
positive
Intensity
55
Confidence
60%
Horizon
Medium term
Effective impact +20
Technology · 10.4

Artificial Intelligence

Direction
positive
Intensity
45
Confidence
55%
Horizon
Medium term
Effective impact +15
Technology · 10.7

Enterprise Software

Direction
positive
Intensity
40
Confidence
50%
Horizon
Medium term
Effective impact +12

Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.