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Teneo.ai Launches Agentic AI for Airlines, Automating Luggage Updates and Loyalty Support with Enterprise-Grade Control

Teneo.ai Introduces Agentic AI to Transform Airline Customer Service
Teneo.ai, a prominent innovator in AI-driven customer service automation, has expanded its Teneo 8 platform with advanced Agentic AI capabilities specifically designed for the airline industry. This new solution targets the automation of critical, real-time operations such as luggage updates and loyalty program support, while upholding stringent enterprise standards for data privacy and accuracy.
Unlike conventional AI chatbots, Teneo 8 integrates large language model (LLM)-powered conversational abilities with a deterministic intelligence layer and multi-LLM orchestration. This hybrid architecture enables airlines to scale automation seamlessly across both voice and digital channels without sacrificing control, precision, or the safeguarding of personally identifiable information (PII). By anchoring interactions in deterministic logic and authoritative backend systems, Teneo 8 mitigates the risk of hallucinated or erroneous responses—a vital feature in aviation, where misinformation can undermine customer confidence and disrupt operational efficiency.
Addressing Core Airline Challenges: Luggage and Loyalty Management
Airline customer service teams routinely grapple with complex challenges, particularly in managing luggage disruptions and loyalty program inquiries, which remain among the most urgent and costly issues. The industry reportedly spends around $2 billion annually addressing delayed or lost baggage, with approximately 1.8 million bags lost or stolen each year. Fragmented data exchange between airports and airlines further complicates baggage tracking, often resulting in customer dissatisfaction.
Per Ottosson, CEO of Teneo.ai, emphasized the importance of these service areas: “Luggage and loyalty programs are where customer trust is won or lost. Passengers expect immediate, accurate updates when their bags are delayed and clear, reliable information when redeeming loyalty points. With Teneo 8, airlines can eliminate the risk of incorrect answers by grounding interactions in deterministic controls and real-time backend data, while maintaining the governance, privacy, and reliability essential in aviation.”
Teneo 8’s AI Agents are designed to support multiple stages of the airline customer journey. These include pre-trip activities such as booking, payment, itinerary changes, cancellations, and refunds; day-of-travel services like flight status updates, check-in, boarding, disruption recovery, and rebooking; post-trip functions including luggage tracking, claims, and proactive notifications; loyalty program management encompassing frequent flyer account support, redemptions, and troubleshooting; as well as assistance for passengers requiring accessibility or special services.
Industry Challenges and Competitive Landscape
Despite the potential benefits, the deployment of agentic AI in the airline sector faces considerable obstacles. Gartner projects that over 40% of agentic AI initiatives will be discontinued by the end of 2027, citing rising costs and ambiguous business value as primary factors. This outlook has contributed to skepticism about the sustainability of advanced AI systems in high-stakes industries such as aviation.
The competitive environment is also intensifying, with AI-native companies from sectors including gaming, analytics, enterprise resource planning, and healthcare administration aggressively pursuing market share. Established providers risk losing relevance as these new entrants leverage cutting-edge AI technologies.
Security concerns remain paramount, as the rise of AI-specific threats has prompted calls for enhanced protective measures. Industry developments, such as Thales’ introduction of an AI Security Fabric, underscore the growing imperative for comprehensive AI security frameworks to safeguard sensitive data and ensure compliance with regulatory standards.
As airlines evaluate the advantages and risks associated with agentic AI adoption, solutions like Teneo 8 will be closely monitored for their capacity to deliver measurable business value, operational resilience, and sustained customer trust in an increasingly digital travel ecosystem.

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