1. IBM partners with Riyadh Air to create the first AI-native airline. 2. Riyadh Air aims to transform aviation with AI-driven operations. 3. The airline's service is set to launch in early 2026. 4. IBM's consulting expertise integrates 59 workstreams with over 60 partners. 5. This collaboration positions IBM as a leader in aviation technology.
FAQ
Why Bullish?
This collaboration highlights IBM's leadership in AI deployments, potentially attracting further partnerships. Historical examples include IBM's partnerships with major corporations, such as in the healthcare sector, resulting in significant revenue increases.
How important is it?
The strategic partnership expands IBM's influence in the aviation sector, enhancing their AI offerings. The trend towards AI-native enterprises will likely create new market opportunities for IBM.
Why Long Term?
The three-year project with Riyadh Air will influence IBM's reputation and potential contracts in aviation well beyond 2026. Similar long-term contracts, like IBM's involvement with the U.S. Federal Government, have led to sustained revenues.
Riyadh Air Partners with IBM to Launch the World’s First AI-Native Airline
In a groundbreaking announcement at IBM Think Riyadh 2025, IBM (NYSE: IBM) and Riyadh Air unveiled a major milestone in aviation history—the launch of Riyadh Air as the world’s first AI-native airline. These innovative AI-driven operations, designed from the ground up without legacy systems, aim to redefine the guest and employee experience in air travel.
Transforming Aviation Operations with AI
Riyadh Air is capitalizing on the extensive expertise of IBM Consulting, which employs a broad partner ecosystem, including leading companies like Adobe, Apple, FLYR, and Microsoft. Utilizing IBM watsonx Orchestrate, Riyadh Air is set to function as an AI-native enterprise from its inception. This collaboration has involved the orchestration of 59 workstreams and more than 60 partners, creating a robust foundation for the airline's technology strategy.
The first commercial flights are expected to begin in early 2026, marking a significant achievement in a three-year partnership that has rapidly progressed.
Leadership Insights on Innovation
"We had a clear choice—be the last airline built on legacy technology or the first built on the platforms that will define the next decade of aviation," stated Adam Boukadida, Chief Financial Officer of Riyadh Air. He emphasized that this partnership with IBM is about stripping away the inefficiencies of past technologies, thus positioning Riyadh Air as a forward-thinking model for future airlines.
Mohamad Ali, Senior Vice President at IBM Consulting, noted, "By embedding AI into the very foundation of its operations, Riyadh Air is setting a new blueprint for what it means to build a modern, adaptive enterprise from the ground up."
Enhancing Employee and Customer Experience
Riyadh Air is committed to reimagining how its workforce engages with travelers through the integration of generative and agentic AI technologies. This approach aims to create a seamless environment where technology enhances the travel experience.
- Employee Experience: A personalized digital workplace will be launched, providing employees with a chat-first entry point to HR, streamlining workflows as the workforce doubles in size over the next year.
- Crew Enablement: AI-powered mobile applications will facilitate a synchronized journey for both employees and guests, leveraging IBM watsonx Orchestrate to empower staff with actionable insights.
- Customer Care: The airline plans to utilize AI-driven voice bots and agent assistance to provide customized and attentive support, enhancing traveler satisfaction through proactive engagement.
Operational Efficiency and Future Aspirations
Constructed with efficiency as a priority, Riyadh Air is leveraging its AI capabilities to uncover new revenue streams and drive innovation without the constraints of outdated systems. IBM Consulting is implementing an enterprise performance management suite to automate planning, budgeting, and forecasting, providing real-time insights for data-driven decision-making.
This integrated approach will not only enhance operational efficiency but also improve route profitability and overall performance.
By 2030, Riyadh Air aspires to serve millions of travelers by connecting to over 100 destinations, thus enhancing the Kingdom of Saudi Arabia's global connectivity.
About Riyadh Air and IBM
Riyadh Air, launched in March 2023 and owned by the Public Investment Fund (PIF), aims to set new standards in airline service by embracing cutting-edge sustainability and safety practices across its advanced fleet. The airline will provide an exceptional travel experience characterized by innovative cabin interiors and state-of-the-art in-flight entertainment systems.
IBM is at the forefront of hybrid cloud and AI solutions, helping organizations worldwide leverage their data for improved processes and competitive advantages. With a commitment to innovation and customer service, IBM supports various infrastructures across industries, including financial services and healthcare.
For further details, please visit Riyadh Air's website or reach out via email at media@riyadhair.com.