Delta Air Lines has responded to growing concerns, stating it does not currently employ nor intend to use artificial intelligence to determine fares based on individual customer data. This announcement follows public criticism, including concerns raised by members of Congress, regarding the potential for 'surveillance pricing,' where AI algorithms adjust airfare rates using personal data.
Senators had voiced worries that AI could inflate ticket prices based on personal interests, potentially exploiting consumer data beyond acceptable transparency levels. Delta maintains that its dynamic pricing strategies rely on factors like overall customer demand, not specific consumer information, and that all customers see the same fares across all retail channels. The airline is testing AI to improve forecasting and eliminate manual processes, but assures that no fare product targets customers with individualised offers based on personal data.
While Delta aims to deploy AI-based revenue management technology across a portion of its domestic network, the airline insists it complies with regulations and that concerns over manipulative pricing tactics are unfounded. The debate highlights the tension between business innovation, consumer protection, and the ethical implications of AI in pricing strategies across various sectors.
