Delta Air Lines says it won’t use AI to set ticket

Delta Air Lines says it will not use AI to set ticket

Delta Air Lines said Friday it won’t use artificial intelligence to set personalised ticket costs for passengers after dealing with sharp criticism from lawmakers.

Last week, Democratic Senators Ruben Gallego, Mark Warner and Richard Blumenthal said they believed the Atlanta-based airline would use AI to set particular person costs, which might “likely mean fare price increases up to each individual consumer’s personal ‘pain point.’”

Delta has said it plans to deploy AI-based income administration technology across 20% of its home community by the end of 2025 in partnership with Fetcherr, an AI pricing firm.

Delta has said it plans to deploy AI-based income administration technology across 20% of its home community by the end of 2025. AFP through Getty Images

“There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized prices based on personal data,” Delta told the senators in a letter on Friday, seen by Reuters. “Our ticket pricing never takes into account personal data.”

The senators cited a remark in December by Delta President Glen Hauenstein that the provider’s AI price-setting technology is able to setting fares based on a prediction of “the amount people are willing to pay for the premium products related to the base fares.”

Last week, American Airlines CEO Robert Isom said utilizing AI to set ticket costs may harm shopper belief.

“This is not about bait and switch. This is not about tricking,” Isom said on an earnings name, including “talk about using AI in that way, I don’t think it’s appropriate. And certainly from American, it’s not something we will do.”

Delta said airways have used dynamic pricing for more than three many years, during which pricing fluctuates based on quite a lot of components like general buyer demand, gas costs and competitors however not a selected shopper’s private data.

“There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized prices based on personal data,” Delta told the senators in a letter. AFP through Getty Images

“Given the tens of millions of fares and hundreds of thousands of routes for sale at any given time, the use of new technology like AI promises to streamline the process by which we analyze existing data and the speed and scale at which we can respond to changing market dynamics,” Delta’s letter said.

It added that AI can “assist our analysts with pricing by reducing manual processes, accelerating analysis and improving time to market for pricing adjustments.”

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