Applied Systems Intelligence (ASI), a Boston-based technology firm specializing in predictive software, has secured a major contract with the Federal Aviation Administration (FAA) to modernize the country’s air-traffic control system. The company’s software, which helps forecast dynamic changes and their operational impacts, is already used by several large airlines and is now being expanded across more than 100 FAA locations nationwide.

ASI’s predictive technology initially gained traction in the airline industry, with clients including Alaska Airlines, Delta Air Lines, and United Airlines. Recently, ASI also ventured into the energy sector, partnering with National Grid to deploy its software for outage detection and energy storage management. The FAA contract represents a significant step in scaling the company’s presence in critical infrastructure.

Currently headquartered in Boston’s Back Bay with approximately 60 employees, ASI plans substantial growth as it ramps up operations to meet FAA demands and support additional clients. CEO Robert Buckendorf, originally from Germany and with experience in California’s autonomous vehicle sector, anticipates expanding the workforce to more than 250 staff in the coming months. Besides Boston, ASI’s employees are located in Washington, Denver, Europe, and some work remotely.

Buckendorf highlighted Boston’s talent pool and business culture as key factors influencing the company’s relocation from Silicon Valley. He described Silicon Valley’s “mercenary culture,” where engineers frequently move between jobs, as less conducive to ASI’s need for long-term commitment to complex technological applications. Massachusetts’ more widespread acceptance of noncompete agreements contrasts with California’s near-ban of such clauses, reflecting differing regional attitudes toward employee retention. Additionally, proximity to the company’s federal government partners in the Eastern time zone played a role in choosing Boston as its base.

ASI’s FAA contract is viewed by Buckendorf as a transformative upgrade equivalent to replacing outdated “Windows 95” systems with advanced, next-generation technology. The company’s track record with major airlines bolstered confidence in its capabilities ahead of taking on this federal project.

The local impact of ASI’s growth drew recognition from Massachusetts State Senator Barry Finegold at a recent press event, alongside news of Boston Dynamics’ expansion in nearby Waltham. Both announcements were cited as significant milestones for the state’s technology and innovation ecosystem.

Finegold has been active in advancing legislation to support artificial intelligence firms in Massachusetts. In 2024, he helped secure at least $100 million to promote AI company development and more recently contributed to a bill allocating $75 million in AI technology grants. The Senate and House have passed versions of this legislation, signaling strong political support for nurturing the region’s AI and tech industries.

Investors also see promise in ASI’s Boston presence. Spark Capital cofounder Alex Finkelstein, an early backer who joined the company’s board, views ASI as a model for AI-driven startups flourishing in Greater Boston without reliance on special tax incentives or exclusive government deals. He believes ASI’s expansion will attract further engineering talent to the area and contribute to the city’s emergence as a significant hub for artificial intelligence innovation.

While Silicon Valley remains a dominant center for AI development, ASI’s leadership sees Boston’s combination of intellectual resources, corporate culture, and government proximity as a competitive advantage in their field.