• Monday, March 03, 2025

Business

How Air India looks at the other AI to undergo major transformation

An Air India plane is parked at Indira Gandhi International airport in New Delhi. (Photo by MONEY SHARMA/AFP via Getty Images)

By: Shubham Ghosh

India’s Air India is set for a complete revival under its new owner Tata Group and one of the ways that the carrier could modernise itself is by roping in OpenAI’s popular chatbot ChatGPT.

It has been reported that the Tatas are now testing the AI chatbot in their systems as part of the plan to shift to algorithm-based software. Air India is reportedly testing ChatGPT to replace the traditional paper-based work.

The airline, which till recently banked on manual pricing system when setting airfares, is moving to algorithm-based software for the same to make more revenue from each flight, a report by Reuters said.

“Frankly the system is almost so bad it’s good,” Reuters quoted Air India CEO Campbell Wilson as telling Indian airline executives last week.

This offered the chance to start from scratch rather than “jury-rig” existing architecture, the top official said.

According to Wilson, some areas such as technology allow for a clean-sheet approach and it was the reason why he was putting artificial intelligence and other tools at the centre of the carrier’s reboot.

It was learnt that Air India’s advanced “revenue management” software intends to stay a step ahead of demand by making continuous predictions about where people wanted to travel to and how much they were ready to pay.

Last month, the airline placed a mammoth order of 470 aircraft in one of the largest orders by any carrier in the world in the history of aviation. The planes were ordered from both giant manufacturers — Airbus (250 aircraft) and Boeing (220).

The carrier is looking at funding the $700-billion order with internal cash, shareholder equity and sale-and-leasebacks.

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