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"It’s Not a Software Problem, but an Ethics Issue," Says IBS Software CEO Somit Goyal on AI and Pricing Discrimination

“It’s Not a Software Problem, but an Ethics Issue,” Says IBS Software CEO Somit Goyal on AI and Pricing Discrimination
The Future of AI in Aviation: Beyond the Hype
At the ALTA AGM & Airline Leaders Forum 2025 in Lima, IBS Software CEO Somit Goyal offered a nuanced perspective on the role of artificial intelligence in the aviation industry. Addressing whether AI represents a transient bubble or a foundational technology, Goyal acknowledged the massive investments—amounting to hundreds of billions of dollars—being funneled into AI infrastructure and data centers. While he conceded that companies have yet to fully realize returns on these investments, he emphasized the unprecedented pace of technological advancement. “Every month, every week, there’s new technology, new capabilities coming. What you can do now, you couldn’t do four months ago,” he noted.
Goyal suggested that the current enthusiasm might appear speculative over a short horizon of two to three years, but over a longer timeframe of 10 to 15 years, the investments are likely to yield substantial benefits. This long-term view positions AI not as a fleeting trend but as an evolving force with the potential to reshape aviation.
AI and the Ethical Challenges of Pricing Discrimination
Turning to AI’s application in airline revenue management, Goyal highlighted the sector’s reliance on data accumulated over decades, particularly through loyalty programs. AI’s capacity to personalize offers and pricing is powerful, yet it raises significant ethical concerns. Regulators, including the U.S. Department of Justice and various state antitrust authorities, have intensified scrutiny of AI-driven pricing models, especially given the difficulty in proving collusion absent explicit intent or agreements.
This regulatory attention reflects broader apprehensions about unfair price discrimination in the travel industry. Some airlines, such as Delta, have responded by clarifying that their pricing strategies do not involve individualized pricing based on personal data but instead rely on aggregate purchasing trends. This distinction underscores an ongoing industry debate about the limits of personalization and the potential for crossing into discriminatory practices.
Navigating AI Risks: The Imperative of Ethical Development
Goyal emphasized that the aviation industry’s challenge extends beyond technological innovation to encompass ethical responsibility. He argued that managing AI risks demands specificity and transparency, particularly in sectors where domain expertise is critical, such as healthcare, insurance, and industrial design. These vertical software companies are often better positioned to withstand AI disruption due to their specialized knowledge.
In the context of aviation, Goyal’s central message was unequivocal: “It’s not a software problem, but an ethics issue.” The industry must balance the promise of AI-driven innovation with the imperative to maintain fairness and trust, ensuring that technological progress does not come at the expense of ethical standards.

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