Delta Air Lines Clarifies Stance on AI-Powered Fare Setting Amid Criticism
Delta Air Lines asserts it does not use artificial intelligence for personalized ticket pricing after criticism from U.S. lawmakers. Instead, it plans to integrate AI-driven revenue management technology without considering personal consumer data. The airline addresses concerns about AI's impact on fare pricing and consumer trust.
In response to growing criticism from U.S. lawmakers, Delta Air Lines has clarified that it does not employ artificial intelligence to determine personalized ticket prices. The airline, headquartered in Atlanta, faced scrutiny after Democratic Senators Ruben Gallego, Mark Warner, and Richard Blumenthal raised concerns about potential fare adjustments based on personal consumer data.
Delta emphasized its commitment to not using personal information for pricing, even as it progresses with plans to apply AI-driven revenue management technology. By the end of 2025, Delta aims to adopt this technology in 20% of its domestic network in cooperation with Fetcherr, an AI pricing firm. This move is part of an industry trend towards utilizing AI for dynamic pricing, which adjusts based on demand without personalizing individual rates.
American Airlines CEO Robert Isom also addressed the issue, stating that employing AI in this manner could erode consumer trust. Meanwhile, lawmakers Greg Casar and Rashida Tlaib have introduced legislation seeking to restrict firms from tapping into personal data to set prices or wages. The debate underscores the delicate balance between leveraging technological advancements and maintaining consumer transparency and trust.
(With inputs from agencies.)
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