Riyadh Air Is The World's First AI-Native Airline, But What Does That Mean?

IBM and Riyadh Air announced on Monday that Riyadh Air is now the world's first AI-native airline. This should not be surprising in a world where almost every new tech product puts artificial intelligence front and center. However, an airline isn't exactly a tech product that needs AI. If anything, some customers may be wary of airlines resorting to AI algorithms to set up dynamic pricing that may lead to higher fares for some customers. But Riyadh Air is set to go beyond what some of its competitors might be doing to integrate AI features into every step of the experience, including employee- and customer-facing features. Riyadh Air's advantage over rivals is that the airline has just started its voyage.

It's operating a few initial flights, with plans to launch commercial services in early 2026. This allows Riyadh Air to implement its AI-native strategy from the get-go, rather than having to turn massive airline operations into an AI-native experience. "We had a clear choice — be the last airline built on legacy technology or the first built on the platforms that will define the next decade of aviation," Adam Boukadida, Chief Financial Officer, Riyadh Air, said in a statement. "With IBM, we've stripped out fifty years of legacy in a single stroke. Riyadh Air isn't just built for today; it's built for the future and creating a pathway for many airlines to follow in the years to come."

What exactly is an AI-native airline?

Riyadh Air's partnership with IBM is all about the AI features that will power its operations. The airline has used IBM Consulting's deep industry and technical expertise and the IBM WatsonX Orchestrate to deliver its AI-native vision. IBM Consulting is responsible for bringing together 59 workstreams and over 60 partners, which include Adobe, Apple, and Microsoft. The two companies explained some of the AI features that will make Riyadh Air an AI-native airline. For example, the employee experience will include "a personalized digital workplace powered by AI agents." The platform will also offer employees a chat experience where they'll be able to engage with HR.

AI-connected apps will also power travel experiences for employees and customers. Riyadh Air will use IBM WatsonX Orchestrate to develop an agentic AI-based concierge experience that employees will use to propose personalized actions for each guest. For example, cabin and ground crews will coordinate to fast-track travelers who may be running late. Guests will also have access to AI-powered customer care services, including AI chatbots that may interact by voice with customers. Human agents will also be involved in the customer care process. The experience is set to offer "personalized support using contextual data to anticipate traveler needs and enhance the overall travel experience."

Will Riyadh Air use AI to customize fare prices?

Unsurprisingly, AI will also be used to create new revenue opportunities, as per the brand. It sounds like Riyadh Air could rely on AI algorithms to design fares, but that's mere speculation. "IBM Consulting implemented an enterprise performance management suite to bring together financial, operational, and commercial data across the organization, automating planning, budgeting, forecasting, and analysis to deliver real-time insights and support data-driven decision making," the press release reads. "By building this integrated foundation, Riyadh Air is enhancing its efficiency, optimizing route profitability, and strengthening overall business performance."

Marketing jargon aside, Riyadh Air has ambitious plans for the upcoming years. The airline wants to connect Saudi Arabia to more than 100 destinations and serve millions of customers by 2030. In addition to deploying AI services across its operations, Riyadh Air also plans to equip its fleet with state-of-the-art features with innovative, best-in-class cabin interiors and experiences, including next-generation digital in-flight entertainment systems to keep you entertained on your next flight.

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