This is a summary of an article recently published by PhocusWire that highlights how airlines are ramping up their exploration of generative artificial intelligence (AI) to enhance both customer-facing services and operational decision-making. Many carriers are adopting Large Language Models (LLMs) to create AI-powered booking assistants and recommendation tools in a bid to diversify revenue streams and improve the travel experience. KLM, Alaska Airlines, Delta Air Lines, Lufthansa, and Air India are among those rolling out AI chatbots and platforms that guide travelers through booking processes in fewer steps and provide personalized recommendations.

Beyond customer service, generative AI is also deployed to optimize routes, manage baggage handling, and improve maintenance. Lufthansa’s partnership with Anacode, for example, uses LLMs to monitor market trends and innovate strategically, while Fetcherr’s “Large Market Models” offer dynamic pricing and inventory control that can raise airline revenues without necessarily increasing average fares. These developments reflect a broader trend toward “AI-infused” operations as airlines strive for new efficiencies and smarter decisions, with loyalty programs also receiving renewed focus. Despite concerns that AI tools might push up ticket prices, early evidence suggests the technology can simultaneously boost airline revenues and lower average fares by better matching demand to capacity. As AI continues to evolve—through tools like OpenAI’s Operator and the potential expansion of market-focused AI beyond aviation—airlines that embrace and innovate with these models stand to maintain a competitive edge in a rapidly changing industry.

Read the full article at Phocuswire

AirlinesChatbots, Robotics & AI