MOVE YOUR BUT
AIRLINES EDITION
Flying to New Heights with AI
The airline industry is in the midst of a long-awaited transformation.
As airlines replace outdated systems to meet rising consumer expectations, embracing AI and digital best practices is crucial to take back control of their systems and operations. By mastering its adoption, airlines can not only overcome legacy challenges and dependencies but also set new benchmarks for commercial efficiency and customer satisfaction.
Air travel should be as rewarding as planning your next vacation. However, when you double-click on airlines, you find that their business models have become obsolete, making the experience stressful and uncertain. In a world where demand for flights has reached 95% of what it was before the pandemic, AI has become the enabler capable of taking airlines to the next level.
73% of airlines are investing heavily in business intelligence programs, while 64% are focusing on major AI initiatives.
The Global AI in Aviation Market size is expected to be worth around $40.4 billion by 2033, from $1.6 billion in 2023, growing at a compound annual growth rate (CAGR) of 38.1% during the forecast period from 2024 to 2033.
AI in airlines is expected to grow by 26.5% by 2028, reaching $914.1 million.
And that's just the tip of the iceberg. You see, despite the fact that AI is already transforming the airline industry at an unprecedented pace, taking into account the new needs of modern travelers in the digital age, there are still many "buts" that turn even the most believer into an agnostic. So buckle up and get ready to take off from the "buts" of AI in this unmissable journey.
5 Beliefs that Stand in the Way of AI Adoption & The Globant Way To Unlock This Entanglement
1 THE BUT
Modernizing Obsolete Technology Costs and AI Costs Even More
We all know that AI is causing a big sensation in the airline industry, but this beautiful sensation often involves more than just a significant upfront investment. Airlines' reliance on legacy systems–some dating back to the 1970s—influences the implementation of AI systems, inhibiting them from modernizing their operations, integrating with modern data analytics tools, and scaling their services.
THE SOLUTION
From Past Lessons to Today’s Leadership with AI
It is true that investing in something new always involves risk, even if it is minimal, but the reality is that the market is not changing. It has already changed. In 2023, the segments that emerged as dominant within the airline AI market were software at 45.5%, ML at 40.2%, and predictive maintenance at 33.7%, and these numbers will only go up.
This highlights the growing importance of software solutions in leveraging AI technologies to improve various aspects of airline systems. For example, predictive maintenance technologies can reduce airline maintenance costs by 25-30% and increase aircraft availability by improving work scheduling and spare parts inventory management.
By 2035, the airline industry can expect $42 trillion in cost and revenue savings from AI adoption, and generative AI is already modernizing legacy airline systems. So AI is the accelerator that will propel your aircraft to new heights–get ready!
Integrate New and Legacy Systems with GeneXus
GeneXus, our Low Code software development platform, was pivotal in modernizing the legacy system for the first international tour package brand of a major Japanese airline. In just 8 months, the airline migrated to a client/server (C/S) system combining IBM i with Windows, transitioning smoothly from RPG to Windows applications.
GeneXus enabled system scaling and functional improvements without disrupting operations, ensuring sustainable maintenance. GeneXus modernizes legacy code, offering airlines a chance to harness AI for automating and simplifying software creation and maintenance. Upgrading old systems not only means tearing down to renew, but also leveraging legacy code for seamless integration.
