Alaska Inspires is Alaska Airlines’ natural language search experience designed to make trip discovery feel more intuitive and personal. Instead of manually filtering through destinations, guests can type or speak questions in their own words—such as “Where can I see live music this summer?” or “I want a diving adventure with vibrant coral, where should I go?”—and get tailored destination suggestions. Key elements of how it works: - Built on Microsoft Azure OpenAI in Foundry Models, part of Microsoft Foundry. - Uses retrieval-augmented generation (RAG) to ground responses in real-time data from Alaska Airlines’ APIs, so pricing and destination information stay accurate. - Supports 90+ languages and includes voice input, making it accessible to a wide range of travelers. - Connects to the Alaska Airlines Atmos Loyalty Program to factor in points, status, and travel goals when recommending destinations. Guests can discover, compare, understand, and book trips in one place, turning what used to be a long, research-heavy process into a more streamlined and engaging experience.

Alaska Inspires was created to address a clear challenge: guests were spending an average of 40+ hours planning trips and rarely using the existing “Where We Fly” tool (fewer than 1% clicked on it). The process felt overwhelming and impersonal. Since launching Alaska Inspires, Alaska Airlines has seen several concrete outcomes: - Planning time reduced: Guests save about 75% of their planning time compared to the previous research-heavy process. - Higher conversion: Alaska Inspires has achieved a 7.16% conversion rate, outperforming the standard 5% booking widget. - Strong satisfaction: The experience has reached 90% user satisfaction. - Industry recognition: Alaska Inspires received the 2024 Future Travel Experience Most Innovative Airline Initiative award. Behind the scenes, Alaska Inspires also centralizes guest data into a single customer database and powers a recommendation engine, helping Alaska Airlines better understand traveler preferences while improving the booking journey.

Alaska Airlines partnered with Microsoft to build and scale Alaska Inspires and to put AI at the center of broader business transformation. Current use of Microsoft technology: - Azure OpenAI in Foundry Models powers the natural language search and recommendation capabilities behind Alaska Inspires. - Retrieval-augmented generation (RAG) ensures responses are grounded in real-time data from Alaska Airlines’ APIs, helping reduce hallucinations and keep pricing and destination details accurate. - Microsoft Copilot and GitHub Copilot are used by internal teams within a secure Azure environment to speed up development and iteration. - A modular architecture makes it easier to extend and adapt the solution over time. Strategic impact and future plans: - Alaska Airlines quickly prototyped and scaled Alaska Inspires in under six months by building on its existing Microsoft relationship and ecosystem. - As the airline completes its acquisition of Hawaiian Airlines, it is ramping up business process transformation with AI at the center. - The company is exploring new AI use cases across HR, finance, and operations, aiming to reimagine end-to-end processes while keeping the guest experience central. Microsoft’s role goes beyond providing tools; direct access to Microsoft experts helps Alaska Airlines fine-tune models, avoid common deployment issues, and align AI initiatives with its holistic strategy for guest experience and operational efficiency.