At an investor conference last week, Delta Air Lines discussed the carrier’s use of artificial intelligence (AI). CEO Ed Bastian explained the opportunities technology opens up for the airline, saying:
“We have over $40 billion of assets that we’ve invested in [our capital base]. If digital and AI can increase the value of that just by 2, 3, 4 per cent, you’re looking at billions of dollars of opportunity over time.”
One area that Delta President Glen Hauenstein identified AI as a having huge potential is pricing. The airline revealed it has been experimenting with this for the past month. Hauenstein explained that strategic application of the technology can streamline labour-intensive feedback loops. By employing machines to analyse large volumes of data and determine customer willingness to pay for products, analysts can review the insights and proceed accordingly.
Despite general enthusiasm, Bastian added a note of caution warning:
“It’s really important that large companies such as Delta ensure that when you deploy AI you have your house in order that you have these policy questions streamlined, you have your data clean you have you have your networks built.”
Bastian highlighted the dangers of an undisciplined approach to AI, warning that you run the risk of “hallucinations on steroids.” Overall, the airline positioned AI as a powerful tool across the business but urged that a rigorous approach must be taken to avoid major difficulties later down the line.
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