The U.S. Federal Aviation Administration is working with several companies to develop a new artificial intelligence tool for managing air traffic. According to a source familiar with the situation who was cited by Bloomberg, the agency has brought in AI-powered defense firms Palantir Technologies (PLTR), Thales (THLLY), and Air Space Intelligence to compete for the project. This is part of a plan to modernize the country’s aging air traffic control system.
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However, the project comes with a significant cost. So far, the FAA has received $12.5 billion from Congress, but it estimates that it will need about $20 billion more to fully complete the overhaul. Because of this, the agency is looking for more advanced solutions to handle growing air traffic demand. Unsurprisingly, the potential use cases for this AI tool could be wide-ranging.
For example, the system could help identify times when there are too many departures or arrivals scheduled, which would allow the FAA to take action and reduce congestion. In addition, the technology could alert air traffic controllers when planes are getting too close to one another, thereby improving safety. As a result, AI is being seen as a key part of the future of air traffic management, as the FAA looks to build a more efficient and reliable system.
Is PLTR Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PLTR stock based on 14 Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PLTR price target of $194.06 per share implies 32.5% upside potential.
