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United Airlines CEO: ‘We're probably doing more AI than anyone'

United Airlines CEO: ‘We're probably doing more AI than anyone'

Yahoo03-06-2025
This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter.
United Airlines is 'probably doing more AI than anyone' as investments in the technology continue, CEO Scott Kirby said during an investor conference last week. A lot of the airline's efforts are still in the experimental phase, he said.
The company is using AI to share flight details with customers and to update labor contracts. In the latter use case, Kirby said AI is more accurate and faster than humans. Baggage recovery is another AI pursuit.
Not every use case is successful. For predictive maintenance, AI 'hasn't worked as well as we thought,' Kirby said. Despite the challenges, the company is still experimenting in this area and has had a few isolated cases that were fruitful.
Enterprises are full of potential AI pursuits, spanning departments and roles. Some use cases are more impactful than others.
Most businesses struggle to identify which ideas to launch at scale. Around 7 in 10 decision-makers have more potential AI opportunities than they can possibly fund, according to a Snowflake report. Early AI adopters have found it challenging to lean on metrics like cost and business impact when deciding what project to prioritize.
CIOs who can help organizations avoid dead-end AI use cases are an asset, according to analysts. The alternative could bring consequences. Decision-makers worry about job security and their company's market position if they advocate for the wrong use case, Snowflake found.
Technology leaders can't make decisions about AI adoption in a silo. Sorin Hilgen, chief digital officer and in-country CIO at convenience retailer EG America, told CIO Dive that deciding which use cases to tackle is a collaborative effort among business leaders, who take into account timelines and resource availability.
Goldman Sachs takes a similar approach.
'We started with an enormous number of [AI] use cases, and we whittled it down to the use cases that we want to spend money on,' COO and President John Waldron said during an investor conference last week.
Enterprises can't chase every lead. The share of companies abandoning most of their AI initiatives bumped up to 42% this year, compared to 17% last year, according to analysis from S&P Global Market Intelligence.
Analysts have urged CIOs not to interpret every failed AI experiment as a negative signal, however. Promoting a culture of experimentation and encouraging trial-and-error can lead to better results and more engagement, experts say.
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The financial data presented in this press release should be considered preliminary until the company files its 10-Q. Conference Call and Webcast Keyvan Mohajer, Co-Founder and CEO, and Nitesh Sharan, CFO will host a live audio conference call and webcast today at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time. A live webcast and replay will also be accessible at About SoundHound AI SoundHound (Nasdaq: SOUN), a global leader in voice and conversational intelligence, delivers AI solutions that allow businesses to offer superior experiences to their customers. Built on proprietary technology, SoundHound's voice AI delivers best-in-class speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants. The company's various groundbreaking AI-driven products include Smart Answering, Smart Ordering, Dynamic Drive-Thru, and the Amelia Platform, which powers AI Agents for enterprise. 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These forward-looking statements include, but are not limited to, statements concerning our expected financial performance, our ability to implement our business strategy and anticipated business and operations, and guidance for financial results for 2025. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. 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Non-GAAP Measures of Financial Performance To supplement the company's financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, non-GAAP net loss and non-GAAP earnings per share. The company believes that providing this non-GAAP information in addition to the GAAP financial information allows investors to view the financial results in the way the company views its operating results. The company also believes that providing this information allows investors to not only better understand the company's financial performance, but also, better evaluate the information used by management to evaluate and measure such performance. As such, the company believes that disclosing non-GAAP financial measures to the readers of its financial statements provides the reader with useful supplemental information that allows for greater transparency in the review of the company's financial and operational performance. The company defines its non-GAAP measures by excluding certain items: The company arrives at non-GAAP gross profit and non-GAAP gross margin by excluding (i) amortization of intangibles (including acquired intangible assets) and (ii) stock-based compensation. The company arrives at adjusted EBITDA by excluding (i) total interest and other income/(expense), net, (ii) loss on early extinguishment of debt, (iii) income taxes, (iv) depreciation and amortization expense (including acquired intangible assets), (v) stock-based compensation, (vi) change in fair value of contingent acquisition liabilities, and (vii) acquisition-related costs. The company arrives at non-GAAP net loss and non-GAAP net loss per share by excluding (i) depreciation and amortization expense (including acquired intangible assets), (ii) stock-based compensation, (iii) loss on early extinguishment of debt, (iv) change in fair value of contingent acquisition liabilities, (v) change in fair value of derivative, and (vi) acquisition-related costs. Reconciliations of GAAP to these adjusted non-GAAP financial measures are included in the tables below. When analyzing the company's operating results, investors should not consider non-GAAP measures as substitutes for the comparable financial measures prepared in accordance with GAAP. To the extent that the company presents any forward-looking non-GAAP financial measures, the company does not present a quantitative reconciliation of such measures to the most directly comparable GAAP financial measure (or otherwise present such forward-looking GAAP measures) because it is impractical to do so. Second Quarter Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and GAAP Gross Margin to Non-GAAP Gross Margin Three Months Ended (thousands, unless otherwise noted) June 30, 2025 June 30, 2024 GAAP gross profit1 $ 16,662 $ 8,482 Adjustments: Amortization of Intangibles 4,084 362 Stock-based compensation 4,175 107 Non-GAAP gross profit $ 24,921 $ 8,951 GAAP gross margin 39.0% 63.0% Non-GAAP gross margin 58.4% 66.5% 1) GAAP gross profit is calculated by subtracting the cost of revenues from revenues. Second Quarter Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA Three Months Ended (thousands) June 30, 2025 June 30, 2024 GAAP net loss $ (74,724) $ (37,322) Adjustments: Total other income (expense), net1 (4,583) (888) Loss on early extinguishment of debt - 15,587 Income taxes 1,256 638 Depreciation and amortization 7,774 1,280 Stock-based compensation2 23,810 7,253 Change in fair value of contingent acquisition liabilities 31,359 (1,082) Acquisition-related expenses 808 686 Non-GAAP adjusted EBITDA $ (14,300) $ (13,848) 1) Includes other income, net of $4.8 and $5.0 million for the three months ended June 30, 2025 and 2024, respectively. 2) Included in stock-based compensation is a one-time impact of $3.8 million related to accelerated vesting of the Restricted Stock Agreement as part of our integration plan of SYNQ3. Second Quarter Reconciliation of GAAP Net Loss to Non-GAAP Net Loss and Non-GAAP Net Loss Per Share Three Months Ended (thousands, unless otherwise noted) June 30, 2025 June 30, 2024 GAAP net loss attributable to SoundHound common shareholders $ (74,724) $ (37,395) Adjustments: Depreciation and amortization 7,774 1,280 Stock-based compensation1 23,810 7,253 Loss on early extinguishment of debt - 15,587 Change in fair value of contingent acquisition liabilities 31,359 (1,082) Change in fair value of derivative (890) - Gain on bargain purchase - (1,223) Acquisition-related expenses 808 686 Non-GAAP net loss $ (11,863) $ (14,894) GAAP net loss per share2 $ (0.19) $ (0.11) Adjustments 0.16 0.07 Non-GAAP net loss per share2 $ (0.03) $ (0.04) 1) Included in stock-based compensation is a one-time impact of $3.8 million related to accelerated vesting of the Restricted Stock Agreement as part of our integration plan of SYNQ3. 2) Weighted average common shares outstanding (basic) for the three months ended June 30, 2025 and 2024 were 400,124,499 and 331,830,608, respectively. View source version on Contacts Investors: Scott Smith408-724-1498IR@ Media: Fiona McEvoy415-610-6590PR@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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