chatbot strategy - visa conf 2017-03-08

A newconversation

___________________________

Brian GrossAeroméxico

• Hello, I’m Brian Gross. I’m here to tell you about a new conversation at Aeromexico. A project to build a chatbot and implement artificial intelligence, or AI.

• Just quickly let me tell you about myself.• VP of Digital Innovation, Aeromexico• Almost 3 years Aeromexico• From Los Angeles area• Degrees in Economics from UCLA and MBA from Rotterdam School of Management in

Netherlands• Previously I was the product manager for Internet banking at a big international bank based in

Holland, then in Atlanta I worked at AT&T – with new consumer apps & sites

• In Summer 2014, Aeromexico contacted me to do a 3-month consulting study in e-commerce• I identified the areas of opportunity, and Anko (our CMO) asked me to stay on and launch a

completely new e-commerce area with a $50 million investment, staff grew from 5 to more than 50.

Heritage

• Flag carrier• Only legacy airline in Mexico• Part of SkyTeam• Was government-owned

1970-1988, 1995-2006

Now!• Great drive to modernization and efficiency from our large

stakeholder Eduardo Tricio (Lala, largest dairy in the Americas), and Delta Air Lines.

• New fleet including Boeing 787 Dreamliners, the most modern airliner in the industry

• Network carrier connecting North and South America• Starting a JV with Delta Air Lines (49%)

• Insourced, staff 5 à 80• New website • API • New check-in kiosks• Chatbot, AI• Doubled Web as % of sales

Digital transformation

• YouTube https://www.youtube.com/watch?v=GUozhzDBP5I

AM New Web site launch video

AM Digital Innovation supportsProfit Customer Experience Brand

Best Latin American airline in e-commerce

Global top 10 airline in digital innovation

• So, why are we doing all this? We have three main goals• Increase Profit – this means we want to shift sales from agencies to direct

sales• Improve Customer Service – we want to increase our NPS score, this

translates into long-term profit and success• Support the Brand – including the image of a modern, tech-forward company• We want to be the Best Latin American airline in e-commerce• And in the world’s top 10 airlines in digital innovation.

It used to be so simple…

We need to bewhere our customer is

• We had a website already in 1999. For ten years, very little changed.• Then in 2008 iOS App store opened – and in June 2012 AM came out with its first app

• And then came social media…• Facebook, Twitter, LinkedIn, SnapChat, Instagram and YouTube.• And we have to be present on all of them, with different messages, different purposes, and different audiences.• But in parallel to this, people started using a new channel to communicate with each other…and not just privately

so we mustprovide anOmnichannelExperience

Mexico is crazy for messaging…Highest use in the world!

#1WhatsApp

#5Facebook Messenger26 million users

Only USA, Turkey and Brazil have more

34 million users

app in MX app in MX

122m

Then three things happened…

1) Bots happened…

April 2016FB releases bots

June-August 2016AM partners with Yalo

and Visa

April 2016KLM bot goes live

Bots happened…

• FB wanted to replicate the success of WeChat in China

2) Artificial Intelligence happenedTop hot AI technologies:1. Natural Language Generation2. Speech Recognition3. Virtual Agents4. Machine Learning Platforms5. AI-optimized Hardware6. Decision Management7. Deep Learning Platforms8. Biometrics9. Robotic Process Automation10. Text Analytics and Natural language

processing (NLP)

— Forbes, Jan. 2017

3) Our API happened

Aeromexico.com

New App

Aeromexico API

NewKiosks

Sabre Shopping, Booking Sabre PaymentsSabre Check-in

Chatbot/Messenger

Adyen

Artificial Intelligence

(Yalo)

WorldPay

Bots – what for?!“Be where your customers are”

QuestionsAnd

Answers

Inspiration Check-in and Trip

Notifications

Ticket sales CustomerService

We’re in the press and winning awards!Press Release Dec 6, 2016 –articles in El Financiero, Milenio

AMIPCI (MX Internet Assn) 2 awards on Dec. 1, 2016:“Best project in the Travel vertical”, “Best project in the Technology category”

*although they didn’t quite understand what Messenger or a chatbot are…

V1.0 September 2016

• Search flight (view choices in the responsive website)

• Track flight• Get information

– Baggage policy– Travel documents required

Select flight and book in Messenger except payment on AM.comFebruary 2016

1849 184

Demo

Mexico – full functionality m.me/AeromexicoMXUSA – m.me/AeromexicoUSEurope – m.me/Aeromexico (planned)LATAM – m.me/AeromexicoLATAM (planned)

Access may be limited from some countries

What’s next?Five tracks

With Visa assets e.g. • Cybersource Decision Manager• Tokenization• Visa Checkout

• Secure, PCI• High approval rate• Reconciliation

• Automatically issue ticket• Confirmation page and email

1) Payment in Messenger

Concept by Visa Innovation Center

2) Questions and AnswersPhase I - April• Natural language (NLP)• Spanish• Answers and links• System learns - AI

Future• Salesforce Knowledge Base• English• Voice• 1 on 1 marketing

¿Cuánto equipaje puedo llevar?

¿Cómo trabajo en Aeroméxico?

No entregaron mi maleta…

¿Cuánto cuesta el vuelo a León?

¿Mi vuelo está a tiempo?

¿Necesito visa para Canadá?

3) Trip Concierge• Alerts• Check in• Boarding pass• Sell ancillaries• Help at Airport

• Notifications– Messenger– Aeromexico App– Built-in Android,

iOS, Chrome, Safari

4) Inspiration and fun

4) Inspiration and fun

5) VoiceVendor Virtual

assistantSmart speaker Built into OS Mobile

app

Amazon AlexaEcho+many “things”

Google Google Assistant Google Home Android Allo

Apple SiriiPhone /iPad (iOS)

Microsoft Cortana Windows 10, Xbox Cortana

Amazon Alexa

• 10 million Alexa devices sold• Google advantage – Gmail, calendar• 3rd party apps• Voice + screen?

Voice…

Google Home

• Mission, KPIs• Roadmap• Outsource – but be informed• Local startups or global integrators

So you think you want a bot?

bgross @ aeromexico.com

MX: m.me/AeromexicoMXUS: m.me/AeromexicoNA

Thank you