AI in the Sky: A curse or a blessing for passengers' claims?

Artificial Intelligence (AI) presents a dual impact -both a curse and a blessing - for passengers' claims in aviation. While AI has the potential to reduce claims, it also introducing new challenges for passenger protection. Methodologically, this study examines the implications of AI through the lens of established legal frameworks, primarily the Montreal Convention of 1999 and EU Regulation 261/2004, alongside relevant case law. The reason this paper arrives to the conclusion that AI is both a curse and a blessing is that AI-powered baggage handling systems can significantly reduce baggage mishandling and mitigate fraudulent claims through enhanced automation and traceability. However, these benefits are tempered by concerns regarding potential AI biases and complex liability questions arising from system glitches or training deficiencies. In the realm of Maintenance, Repair, and Overhaul (MRO) anomaly detection, AI offers a transformative leap towards predictive maintenance, potentially decreasing delays and cancellations. Nevertheless, this advancement challenges the “extraordinary circumstances” defense under EU Regulation 261/2004.