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Delta’s AI ticket pricing plan faces scrutiny from lawmakers
Delta’s AI ticket pricing plans face criticism from US lawmakers over potential fare increases and data privacy concerns
Delta’s AI ticket pricing plans face criticism from US lawmakers over potential fare increases and data privacy concerns
– US lawmakers are concerned about Delta’s AI plans for ticket pricing affecting costs and privacy.
– Delta maintains its pricing strategy treats all customers equally and does not rely on personal data.
Delta’s CEO Ed Bastian was pressed to explain these practices in a letter from the senators. Previous comments suggested the airline aims to implement AI-driven revenue management across 20% of its domestic network by the end of 2025, collaborating with Fetcherr. The senators highlighted that this technology could adjust fares based on predictive analytics of customers’ spending habits.
Delta has responded, asserting that no current or planned product targets individual consumers based on personal information. They clarified that their approach to dynamic pricing has been in use for over three decades, and maintains that all customers receive the same fares across all platforms.
Senators’ Concerns
Investigations into whether airlines are manipulating prices based on customer data continue, with similar inquiries directed at Frontier and Spirit Airlines regarding their fee structures.
