**Delta Will Not Utilize Your Data For AI Ticket Pricing, But Privacy Concerns Persist**
Delta Air Lines has recently disclosed its implementation of AI for determining ticket prices, igniting privacy apprehensions. In an earnings call, Delta reported “incredibly positive” outcomes from a trial program employing AI for 3% of fares, with ambitions to broaden this to 20% by the close of the year. This has led to worries about possible predatory pricing, with U.S. legislators voicing apprehensions regarding privacy and price manipulation.
Delta has guaranteed that personal information will not be leveraged to set prices, yet has not detailed how AI establishes dynamic pricing. Democratic Senators Ruben Gallego, Mark Warner, and Richard Blumenthal addressed a letter to Delta CEO Ed Bastian, underlining worries about data privacy and possible fare hikes influenced by individual consumer vulnerabilities.
Delta replied, affirming adherence to pricing regulations and refuting the use of personal data in AI pricing. The airline highlighted that dynamic pricing has been a norm in the industry for years, influenced by market dynamics, and that AI will improve data analysis and response times.
Regardless of Delta’s assurances, doubts linger regarding its AI methods. Legislators Greg Casar and Rashida Tlaib suggested legislation to ban AI-based pricing that utilizes personal data, specifically aimed at airlines. U.S. Transportation Secretary Sean Duffy expressed concerns regarding AI-driven customized pricing and cautioned about investigations should companies partake in such activities.
The potential abuse of AI in pricing is emphasized by a Federal Trade Commission report concerning retailers employing personal data for price determination. Legislators referenced instances of AI possibly taking advantage of personal situations, such as imposing higher fares on passengers in urgent circumstances. According to officials, Delta’s AI technology utilizes vast amounts of data to forecast consumer willingness to pay, prompting demands for transparency in its data utilization.
Delta’s AI-driven pricing approach remains under evaluation, with lawmakers and regulators vigilantly observing its execution to avert potential consumer exploitation.
