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From Turbulence to Tailwinds: Air India’s AI Assistant Soars

30,000 daily customer queries resolved with 97% automation, unlocking millions in savings and elevating passenger experience.

AI of the Tiger Newsletter

🐯 AI OF THE TIGER 🐯

October 24, 2025

TL;DR:Air India deployed the world's first airline generative AI assistant, automating 97% of nearly 4 million customer sessions while handling 10,000 daily queries. The result? Several million dollars saved annually while doubling passenger count without increasing call center staff. Your customer service playbook just arrived.

🎯 AI IN ACTION

🚫 Business Problem

Picture this: You're running a century-old airline trying to shed decades of operational baggage while passenger expectations soar higher than your planes. That was Air India's reality in 2022. Under new Tata Group ownership, the airline had ordered 470 new aircraft and was midway through a five-year transformation to reclaim its status as India's flagship carrier.

The challenge? Customer service was drowning. Their contact centers were handling 9,000 queries daily, and traditional chatbots were like having a robot receptionist who only speaks in error messages—useless for anything beyond basic queries. With passenger numbers doubling, scaling human agents proportionally would bleed cash faster than a first-class upgrade spree.

"Customers are the very center of our existence. We anticipate a many-fold increase in passengers, and they're coming with certain expectations. We need to deliver. Happy customers are loyal customers." - Dr. Satya Ramaswamy, Chief Digital and Technology Officer, Air India

🤖 AI Solution

Enter "Maharaja" (later rebranded as AI.g)—Air India's generative AI virtual assistant that launched in pilot mode in March 2023 as the world's first airline AI agent of its kind. Think of it as having a super-smart travel agent who never sleeps, speaks multiple languages, and remembers every airline policy ever written.

This isn't your typical "press 1 for departures" bot. Maharaja handles real conversations like:

  • Complex dietary queries: "I'm a vegetarian with a nut allergy traveling business class from New Delhi to London. What can I expect for my meal?"
  • Practical travel questions: "Can I carry my camera bag in addition to my cabin bag and laptop?"
  • Incomplete requests: When someone asks "What about extra baggage?" the AI asks for booking class and frequent flyer status to give a tailored answer.
  • Pet travel with personality: "Can I bring my Labrador, Max, with me?" The AI understands Max is a dog, applies pet policies, and responds using the dog's name.
"This is possible because Azure OpenAI Service has the ability to reason that a Labrador is a dog, a dog is a pet, and therefore the pet policy applies. And it gives a beautiful answer that includes the name of the dog along with the policies." - Dr. Satya Ramaswamy, Chief Digital and Technology Officer, Air India

⚙️ Technology Details

Behind AI.g's conversational magic lies a sophisticated tech stack that's actually quite elegant in its design. Think of it as a well-orchestrated symphony where each instrument plays a specific role.

At the core sits Azure OpenAI Service with GPT-4, providing the brain that understands natural language. But here's where it gets interesting: Azure AI Search acts as the assistant's memory bank, helping it instantly retrieve accurate airline policies and procedures through a technique called RAG (Retrieval Augmented Generation)—basically ensuring the AI doesn't make stuff up.

The data layer is equally impressive. Azure Cosmos DB handles the heavy lifting, storing millions of conversation histories, user states, and booking data with the kind of speed and scale that keeps everything running smoothly during peak travel seasons. For structured data like conversation analytics, Azure SQL Database steps in, while Azure Database for PostgreSQL and Azure Databricks round out the data architecture for specialized needs.

The whole system runs as interconnected microservices on Azure App Service, making deployment fast and updates seamless. Security? That's locked down with Azure API Management, ensuring customer data stays protected with enterprise-grade security layers. Add Azure AI Speech and Azure AI Vision to the mix, and you've got a multi-modal AI platform that can handle voice, text, and visual queries across web, mobile, and WhatsApp.

"For use cases where we want a dynamically scaling database, especially for NoSQL data, Azure Cosmos DB is our choice. With our virtual assistant in particular, we have experienced the higher scale, higher availability, and faster time to market." - Binu Chacko, Head of Information Security and Architecture, Air India

⚠️ Implementation Challenges

Training an AI to understand Indian English and regional dialects while mastering aviation jargon? That's like teaching a computer to be culturally fluent and technically precise simultaneously.

The team had to ensure data privacy compliance with aviation regulations, integrate with legacy systems that had been accumulating for decades, and maintain 24/7 reliability. Plus, getting both customers and staff to trust and adopt the new system required serious change management muscle. Air India employed a blend of traditional machine learning techniques alongside generative AI, establishing safeguards to prevent biased or harmful language.

💰 Business Impact

The numbers tell a story that would make any CFO smile:

  • 97% automation rate: Nearly every customer session handled without human intervention
  • Nearly 4 million customer queries successfully managed
  • 10,000 queries daily handled by AI.g alone
  • Contact center stability: Call volume remains at 9,000 daily despite doubling passenger count since early 2022
  • Several million dollars saved annually by avoiding proportional contact center expansion
  • Superior customer experience: Customers prefer instant AI responses over waiting for call center agents
"We have doubled our passenger count since early 2022. But the call volume in our contact center remains the same—about 9,000 queries daily. That's because AI.g is handling about 10,000 a day. That saves us several million dollars a year. And AI.g would not have been possible without strong collaboration with Microsoft." - Dr. Satya Ramaswamy, Chief Digital and Technology Officer, Air India

💡 Lessons Learned

Air India's journey offers three golden rules for AI customer service success:

  • Cultural adaptation beats technical perfection: Deep domain training across 1,300 topics and understanding local nuances matter more than having the fanciest AI model. The system even learns from complex questions it can't immediately answer to improve future interactions.
  • Humans still rule complex cases: AI handles 93% of routine queries brilliantly, but your best agents remain essential for the 7% of cases requiring personalized attention and complex problem-solving.
  • Integration is everything: Strong backend system connections, privacy controls, and safeguards against harmful content from day one build trust and accelerate adoption across all customer touchpoints.

🐯 Tiger Takeaway:

Air India proved that generative AI isn't just a tech upgrade—it's a customer experience revolution. By automating 97% of nearly 4 million queries while handling 10,000 daily interactions, they've saved several million dollars annually and kept call center volumes flat despite doubling passenger count. The secret sauce? A comprehensive AI stack that treats accuracy as non-negotiable, paired with the understanding that AI enhances human capabilities rather than replacing them. The success has been so remarkable that major global airlines are now reaching out to learn how to replicate this model.

Sources: Microsoft Customer Stories, Air India, Campaign Asia

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