By Dana Dunne, CEO of eDreams ODIGEO.
The pace at which artificial intelligence (AI) is developing is thrilling, but what’s even more exciting is that we are still only in the initial phase of the development and deployment of this technology. More transformation is yet to come. In fact, according to McKinsey’s research, we have barely scratched the surface. Their findings suggest generative AI could add the equivalent of $2.6 trillion to $4.4 trillion annually to the global economy. Whilst the economic potential of generative AI is huge, the road ahead is packed with both opportunity and challenge, and it will require a deep understanding of the technology coupled with tactful navigation from smart business leaders to maximize the possibilities.
Generative AI is a step change in the evolution of artificial intelligence. It can compute and analyze vast amounts of data at a speed—that is unachievable by a human brain—and, as a result, is set to unleash the next wave of productivity in the workplace. However, the greatest potential for AI is perhaps in its ability to act as a catalyst for innovation.
An Industry Disruptor
Artificial intelligence impacts our personal and professional lives every day, making life more efficient in ways we may not even be aware of. The technology shapes our decision making and drives our daily tasks, from powering our phones to online banking or to the tools retailers use to engage with consumers.
Using AI to accelerate research has already been adapted to great lengths in the healthcare industry, which is, for example, using the data derived from clinical trials to run millions of simulations and identify drug targets for certain illnesses, discovering links that could otherwise take years to identify manually. With the cost of developing a new drug often exceeding $1 billion, AI has the potential to save pharma companies significant amounts that can be redirected into other research products, so it can truly revolutionize the industry and spark an explosion in medical breakthroughs.
AI-driven innovation will also have profound implications for the travel sector. For an industry that already collects, processes and analyzes large amounts of data, there exists a framework that suits the greater application of AI technologies to help businesses find innovative ways of improving their services.
While AI has gained popularity in recent months, my own team has been dedicated to investing in this technology for almost a decade now. In 2014, we took a pioneering step by establishing one of the first in-house AI teams in the travel industry, leading to the development of one of the first truly AI-driven fraud prevention systems. Our utilization of AI has been a crucial factor in enabling us to attain the highest level of monetization for our bookings within the OTA flight sector.
Our platform has also been using its own generative AI models for data augmentation use cases, including individualized route itineraries for its customers or offering personalized propositions to our subscribers. In the future, many more refined and personalized itineraries will be generated for customers based on their preferences, budgets and timescales. This could also factor in how to minimize carbon emissions against costs, an essentiality in an industry in which more and more consumers are becoming climate conscious.
A Hybrid Approach
For businesses to succeed and harness this disruptive technology, a hybrid approach to implementation must be adopted. AI should be viewed as a complimentary feature to your staff, not as their replacement. We employ a fiercely talented team who possess great creativity and imagination, and AI is there to make their lives and workflows easier rather than leaving them concerned for their job security.
AI can assist your team’s work by acting as a catalyst for ideas—such as prompts in a brainstorming session—and eliminating tedious and time-consuming administrative tasks, leaving them with more time to spend on the more creative elements of their work or on investing valuable time in your 1:1 interactions to keep customers and partners engaged.
Another key area that is seeing rapid changes and accelerated transformation is the world of coding. With the use of AI, my company’s tech teams have the ability to turn concepts into actionable platform updates in seconds. This can help improve the user interfaces of digital tools and incorporate new ideas instantly, cutting out the long and arduous task of implementing updates over weeks and months. It can help minimize bugs and allow you to fix problems before they become a nuisance to customers. In a highly competitive industry, fine margins in user-friendliness, speed and accuracy of your apps and search engines can be the difference in retaining customers or losing them to your competition.
Navigating A New World
To capitalize on the wave of innovation that is sweeping industries, businesses must diversify their use and application of AI. There is no one-size-fits-all approach that will work. There are hundreds of minor changes to the administration of a business and a hybrid use of human and technology resources that help you realize the potential of AI innovation. Significant technological evolution requires forward-looking businesses to evolve their strategies and processes to match the pace of innovation.
Soon, many standard procedures in the workplace will be powered by automated technology. This means staff members will need to evolve their skills and be properly trained to use AI technology effectively, and technology teams will need to be bolstered to include specialized individuals to oversee the use of AI across the business. This works for both front-of-house functionalities such as customer service and user experience and behind-the-scenes operations, including site maintenance, accounting and HR.
I believe the combination of micro efficiencies in all of these areas will drive wholesale change across the board and add up to more innovation and investment that ultimately creates a better customer experience, increasing satisfaction, retention rates and reputation whilst ensuring the long-standing health of the business as a whole.
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