The three ingredients we highlighted in the previous chapter suggest that AI might lead to strategic change. First, lower cost versus more control is a core trade-off. Second, that trade-off is mediated by uncertainty; specifically, the returns to control increase with the level of uncertainty. Major airlines balance lower cost and more control by optimizing the boundaries of where their own activities end and those of their partners begin. If a prediction machine could cut through this uncertainty, then the third ingredient would be present and the balance would shift. Airlines would contract
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