Delta Air Lines has provided further clarification on its AI-driven dynamic pricing approach following scrutiny over earlier statements. In November, Delta president Glen Hauenstein mentioned a pricing model tailored to individual customers for specific flights and times. However, EVP Peter Carter responded to lawmakers affirming that Delta does not use or plan to use AI for setting individualized prices based on personal data, emphasizing zero tolerance for discriminatory pricing. The AI technology, developed by Fetcherr, is intended to support analysts by aggregating data to optimize fare pricing on about 20% of Delta’s domestic flights by year-end. The AI acts as a ‘super analyst,’ adjusting prices in response to competitor pricing and market trends rather than personal information. Delta confirmed that no personal data is shared with Fetcherr and is currently evaluating the AI pricing tool amid regulatory inquiries, including letters from U.S. senators and proposed legislation aimed at restricting AI-driven price setting based on personal data.
Back
