Next year will mark the 200th anniversary of freight railroads—an industry grounded in history but being rapidly transformed by innovation. 
 
The modern rail network increasingly relies on AI-assisted inspections, machine vision, predictive analytics, advanced sensors, and real-time data to spot warning signs not always visible to the human eye. These tools help find risks earlier, improve safety across the 140,000-mile network, and enhance service reliability. 
 
And the results are clear. According to the Federal Railroad Administration, 2025 was the safest year on record across key measures, including derailment rate, equipment- and track-related accidents, and importantly,  employee injuries. This progress reflects sustained investment, employee expertise, and continuous innovation. 
 
Technology is driving record safety gains that will be essential to the next leap forward. The future of rail safety depends on detecting issues before they become failures. 
 
We are seeing this story unfold across the industry.  

Today’s freight railroad systems collect real-time track data during regular service, while AI-enabled tools  identify defects earlier than manual inspections alone.  And together with rail temperature monitoring, they enable a fully data-driven inspection model. 
 
Advanced detection technology combines GPS, cameras, radar, and lidar to help monitor work zones and to automatically stop movement when risks are found.  

Some railroads rely on AI-powered imaging portals that scan railcars at track speed and flag defects in near real time, while others use machine vision and AI to analyze large data sets, detect patterns, and predict maintenance needs months in advance—allowing more targeted, preventive action. 

From automated inspection systems and ground-penetrating radar to optical technology capable of detecting early stage defects, technology is expanding both the reach and precision of inspections across the industry.  

As we look forward to the next 200 years of freight rail, one thing is clear: regulatory certainty and a mode-neutral approach to federal policy will be essential to ensuring safety gains through innovation remain viable.  

Advanced tools are reshaping movement across the entire freight sector. Rail should not be treated differently simply because it is an established industry or because innovation challenges legacy assumptions.  Federal policy should encourage innovation based on measurable outcomes—not restrict it through outdated frameworks and preferences. 
 
A predictable and flexible regulatory environment is equally important to improving safety outcomes. Much of today’s regulatory structure is outdated, having been established more than five decades ago.  

Railroads now have more advanced ways to meet safety goals, yet regulations often prevent those methods from being used to satisfy requirements. At the same time, we are seeing legislative proposals that could lock in, or double down on legacy practices, risking slowing progress at a time when innovation is thriving.  

 If we want continued safety improvements, affordability, and supply chain resilience, policy must enable investment and support development and deployment of new technologies—not discourage them. Let data guide decisions and safety outcomes—not narrow, prescriptive regulatory policy. 

But improved safety is not the only outcome on the line. Efficiency, service, and reliability hang in the balance should Congress embrace a posture opposing evidence-based innovations.  

Freight rail operates one of the world’s most interconnected systems and invests roughly $25 billion annually in infrastructure, equipment, and technology. It also quietly moves 40 percent of long-haul freight ton-miles and supports critical industries across the economy. The question is whether policy will support that progress.  

The future of American efficiency, competitiveness, and supply chain resilience depends on it.  

Ian Jefferies is President and CEO of the Association of American Railroads