AEI (Automated Equipment Identification) tags are passive RFID (Radio Frequency ID) tags utilized exclusively by the American Association of Railroads for freight rail traffic. They are placed on both sides of a railcar about four feet above the rail.Positioned on either side of a railcar about four feet above the railway itself, tag data is retrieved from a scanner via radio signal, so there’s no need to replace any batteries or charge the tags in order to keep them powered. Picture the scanner you use to scan produce at the grocery store – instead of light, AEI systems utilize a 900 MHz radio signal.