PYMNTS MonitorEdge May 2024

This Week in AI: Airline Pricing, Search Boosts, Company Cash Windfalls and Google Video

This week in artificial intelligence, airlines are diving into AI this summer to enhance booking systems and boost profits, with Israeli startup Fetcherr leading the way in dynamic pricing. Meanwhile, Google’s AI-powered search summaries aim to transform online information access, sparking publishers’ concerns over traffic and ad revenue losses.

AI Gets Wings With Airline Pricing

Airlines are using AI this summer to supercharge their booking systems and rake in the cash. Israeli startup Fetcherr is arming airlines with AI tools intended to crack the code on dynamic pricing.

Fetcherr’s platform uses reinforcement learning models to simulate pricing scenarios and help airlines zero in on the most profitable strategies in real time. Its AI model and high-frequency pricing system have caught the eye of big players like Virgin AtlanticAzul Brazilian Airlines, and Royal Air Maroc.

“Just as reinforcement learning is a domain of machine learning in which an agent optimizes its behavior through interactions with a dynamic environment, guided by the feedback of rewards or penalties, Fetcherr uses models to continuously improve and optimize airline revenue management strategies, where the reward to be optimized is a revenue-based KPI decided by the airline,” Fetcherr CEO Roy Cohen explained to PYMNTS.

Google’s AI Summaries: Efficiency for Users, Concerns for Publishers

Google’s new AI-powered search summaries are poised to change how users access information online. Still, the move has publishers worried about potential website traffic and advertising revenue losses.

The feature, expected to reach over 1 billion users by year’s end, will generate topic summaries for complex queries, potentially reducing the need for users to click through to other websites. The shift could impact content creators who rely on website traffic for their livelihood.

Google plans to prioritize traditional website links and ads for simple searches while integrating assistant-like planning capabilities for more complex tasks, such as creating meal plans using recipes from across the web. As the tech giant moves forward with its AI-driven search enhancements, online publishers are left to navigate the potential consequences of this new era in information access.

Tech Companies Cash in on Surging Demand

The AI boom is undoubtedly making waves in the technology industry, and companies are eager to capitalize on the growing demand for AI solutions. The first-quarter results from various players in the field are a testament to the increasing importance of technology.

SoundHound, for example, is a company specializing in voice-based AI. It reported a 73% increase in revenue, reaching $11.6 million in the first quarter. CEO Keyvan Mohajer attributed the growth to the rising popularity of voice AI in customer service.

“Voice AI is fast becoming a must-have tool for customer service, and that’s reflected in the demand we’re seeing for subscriptions,” he said.

The company’s backlog of subscriptions and bookings also saw an 80% increase from the previous year, totaling $682 million.

Google’s Veo Throws Down Gauntlet in AI Video Arena

In a move set to shake up the AI-generated video market, Google unveiled Veo, a model designed to go head-to-head with OpenAI’s Sora.

Veo can generate 1080-pixel video content across a range of visual and cinematic styles, from panoramas to time-lapses. It also has an interface that allows for edits and adjustments to previously generated footage.

As the battle for AI video supremacy heats up, the implications extend beyond content creation. The democratization of high-quality video generation can potentially disrupt industries across the board, from marketing and advertising to entertainment and education.

However, the rise of AI-generated video raises concerns about potential misuse, such as the proliferation of deepfakes and the spread of misinformation. Experts say safeguards and ethical guidelines are needed to ensure the integrity of the digital landscape.

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