Air India targets more direct bookings as AI drives digital growth

Air India is targeting a higher share of direct bookings as it expands the use of artificial intelligence across customer service, operations and engineering, as part of its broader digital transformation.

The airline is aiming to increase the contribution of direct channels such as its website and mobile app to around 50 percent of total bookings, as automation improves customer experience and reduces reliance on intermediaries, according to The Financial Express.

AI adoption gathers pace across operations

Air India has deployed more than 30 AI-led initiatives across its operations, with a focus on reducing manual intervention and improving efficiency, Chief Digital and Technology Officer Satya Ramaswamy said in an interaction with The Financial Express.

“We want to be the world’s most technologically advanced airline,” he said, adding that newer AI systems are enabling machines to understand context and act autonomously.

The airline has committed about $200 million towards its digital overhaul, with early deployments already delivering operational and cost benefits.

Automation reshapes customer interactions

The airline’s generative AI-powered virtual assistant has handled over 20 million customer queries, with around 97 percent resolved without human intervention, according to The Financial Express.

Currently, about half of all customer interactions are managed digitally, allowing faster response times and lower servicing costs.

“About 50 percent of customer contact is now handled automatically, which gives us a substantial cost advantage and faster turnaround for customers,” Ramaswamy said.

Digital channels gain traction

Air India’s push towards direct engagement is reflected in growing usage of its digital platforms. The airline’s mobile app has crossed 2.7 million downloads, adding roughly 10,000 installs daily, while its website sees close to 300,000 users each day, The Financial Express reported.

The company is using these platforms to drive direct bookings and deepen customer relationships, supported by more personalised services.

Data backbone supports next phase

To enable its AI strategy, Air India has built a unified data platform integrating 45 data sources, over 800 terabytes of data and 80 million customer profiles, according to The Financial Express.

This infrastructure allows real-time insights and tailored offerings, forming the foundation for the next phase of automation.

The airline is also developing AI agents designed to support customers, pilots and aircraft systems, with capabilities such as automated rebooking during disruptions and optimisation of maintenance schedules.

Focus on long-term efficiency gains

Air India expects the combination of automation and digital adoption to deliver measurable gains in efficiency and revenue over the next year.

As the airline scales its AI-driven systems, the shift towards direct bookings is likely to play a key role in improving margins and strengthening control over customer engagement.