Key insights
- The FAA selected Palantir, Thales, and Air Space Intelligence to develop an AI tool for air traffic management. This initiative, funded by Congress, aims to modernize the aging air traffic control system, enhance safety, and reduce congestion. While positive for the involved companies, the overall market impact on US equities is limited.
Investing.com -- The US Federal Aviation Administration has selected Palantir Technologies Inc. (NYSE:PLTR), Thales SA and Air Space Intelligence Inc. to compete on developing a new artificial intelligence tool for air traffic management, Bloomberg News reported.
The initiative is part of efforts to modernize the nation’s aging air traffic control system, which officials say will enhance safety and reduce technology outages. The FAA has received $12.5 billion from Congress for the project but has indicated it will need approximately $20 billion more to complete the overhaul.
Transportation Secretary Sean Duffy referenced the new AI tool during a conference in Washington on Friday.
"We have three companies that are working right now with us on developing software to look at how flights are managed," he said. Duffy added that AI could help identify periods with many scheduled departures or arrivals, allowing the FAA to take steps to reduce congestion.
The technology could also be used to inform air traffic controllers when planes are going to be too close to each other, he said.
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