Airport Technology and Efficiency Improvement Act of 2023 This bill establishes and reauthorizes Federal Aviation Administration (FAA) grant programs to support internet of things and security technologies in airports. (The term internet of things is often used to refer to a system of interrelated devices that are connected to a network and/or to one another and exchange data without necessarily requiring human-to-machine interaction.) The FAA must establish a new pilot program to provide grants to airports for the acquisition and installation of airport sensor systems, software, and passenger signals that facilitate the modernization of technologies and provide efficiency gains in airports (e.g., shortened security lines, Wi-Fi and Global Positioning System [GPS] upgrades, and use of smart signals in security lines). The FAA must prioritize projects that do not collect facial and biometric data of passengers who are not identified as security threats. The bill also reauthorizes an FAA grant program to acquire and install qualifying surveillance surface display systems and sensors to secure non-movement areas (the portion of the airfield surface not controlled by air traffic control). The FAA must prioritize projects that use sensors that in low-light and degraded visual conditions can categorize and distinguish between humans, animals, and other objects. Also, the bill makes light detection and ranging (commonly known as LIDAR) sensors eligible for funding as part of the Department of Transportation's airport terminal development program.