DELTA: NAVIGATING SUSTAINABILITY IN THE AGE OF AI

The context of this analysis is the use and influence of artificial intelligence (AI) on Delta’s business model. Artificial intelligence refers to a machine learning algorithm that is trained on large data sets. The more data provided to the algorithm, the higher chance its answers or predictions are accurate. The goal of artificial intelligence is to mimic human intelligence and perform tasks such as data analysis, decision-making, predictive analytics, and create automation in certain tasks. Artificial intelligence can be developed for a wide spectrum of usage. Some artificial intelligence will have a broad range of learning, or a generalist when coming to usage. On the other hand, some artificial intelligence will be a specialist, focused on performing specific jobs or tasks, like coding or mundane process automation. While there is a need for specialized artificial intelligence in many areas of the airline industry, there are a handful of ways that Delta can leverage the technology to enhance their operations while meeting sustainability goals. 

There are several applications of AI from which the airline industry could benefit, including: 

• Operational Efficiency: AI can optimize Delta’s route planning, crew shift management, and flight schedules. This would help avoid delays related to overworking crew members (hitting hour limits), avoid flight delays due to the weather, provide quicker service routes, and more. 
• Customer Service: While many companies already use chatbots, AI could be integrated into their virtual customer service. While everyone loves working with a real person when it comes to urgent customer service, there are some services and topics/FAQs that could be migrated to AI assistance. This would allow employees to focus on the topics or issues that matter. 
• Predictive Maintenance: While airplane maintenance schedules vary widely based on the air vehicle, there is no exact timeline for many maintenance needs. Since many maintenance items are discovered under inspections which are required every 400-600 flying hours, this process takes the jet out of the air for up to 24 hours. If a maintenance issue is missed, the plane could be taken out of the air for longer. AI paired with sensors on aircraft could predict maintenance needs and or potential failures that could have been missed by technicians. This would help airlines reduce downtime and enhance safety. 
• Revenue management: AI could be used to track historical data in the geopolitical environment, consumer trends, and try to predict future demands. IT could then use these predictions to set ticket prices and ancillary sales that reflect market rates for their quality of service.  
• Safety/Security: Like mentioned before, AI could be used with sensory technology to predict maintenance needs. It could also be used to identify potential security threats by passengers throughout all points of time in the travel process; TSA, boarding and deplaning, and in air. It could also be used to help the passengers in crashes and other critical needs. 
• Fuel Efficiency: AI can be used to analyze cargo load and fuel requirements to optimize weight distribution for fuel efficiency. Passenger load could also be incorporated into this for partially full flights where Delta may be able to move passengers around, however their customer service commitments and allowing customers to choose their seats could prevent the use of AI here. AI powered co-pilots could also be used to make recommendations to pilots not only for smoother flights but also for fuel efficiency.  
• Dynamic Pricing: AI and customer analytics could be used to achieve more accurate dynamic pricing to more accurately match willingness to pay with customers. 

Below are the impacts of AI on Delta’s stakeholders.  

Customers 

• Prices would be more reflective of the market and hopefully in a better range for the consumer. They would be in a safer state due to the updated and put into place security and maintenance protocols. Finally, customer service should hopefully be a smoother experience. 
• AI could allow for highly effective dynamic pricing based on need and willingness to pay. This could be a positive effect for some customers and negative for others, the effect would change in each situation since this could allow Delta to charge higher prices when data shows that a customer is in more need of a flight.  

Suppliers 

• Aerospace companies and fuel companies would have a more structured plan with Delta and hopefully increase sales. With preventative maintenance analytics from AI, Delta could preorder parts as needed. With flight optimization, jets could potentially make more flights and therefore need more gas. 

Delta investors 

• Potential reduction in workforce required to maintain current operations and profit levels, increasing value for investors by reducing costs.  

Employees 

• Better work schedules, optimized hours, and AI assistance to take on monotonous tasks that otherwise consume too much time.  
• Potential for reduction of workforce is AI is used to replace tasks that require an employee right now, for example, pricing for flights that currently require large teams with some people dedicated to a single route.  

Partners (SkyTeam) 

• AI could be used to specifically target customers so that their preferences are matched to airlines that can best serve them and target marketing efforts. This could lead to higher customer satisfaction for Delta and their partners.  
• AI can be used to optimize route schedules for partners to improve transfer of passengers between partner airlines.  

SDG #9: Industry, Innovation, and Infrastructure 

• Short term- AI can enhance operational efficiency which reduces fuel consumption and emissions 
• Long term- AI could help improve operational efficiency across the industry, leading to a material reduction in global emissions 

SDG #3: Good Health and Well-Being & SDG #8: Decent Work and Economic Growth 

• Short term- Using AI to perform repetitive, non-intellectually stimulating tasks can free up employees to do more meaningful work. Using AI as a virtual customer service representative when appropriate will also improve the customer experience by improving wait times. 
• Long term- Outsourcing AI to perform the repetitive tasks described above could lead to an overall higher retention rate and employee satisfaction. On the customer side, faster responses and solutions will increase customer loyalty. 

SDG #13: Climate Action 

• Short term- Operational improvements and efficiencies led by AI can help Delta reduce their carbon footprint and achieve climate action goals  
• Long-term- These improvements may also lead to more aggressive climate action plans and goals 

SDG #3: Good Health and Well-Being 

• Short-term- the predictive maintenance and safety/security improvement discussed in Section II improve the overall safety of employees and customers 
• Long-term- improve the overall safety standard and outcomes of the industry 

Group: Alex Gherardi, Kelly Farmer, Kaitlyn Shipskie, Michael Stogner