Delta Air Lines has clarified its use of artificial intelligence (AI) in dynamic pricing, following criticism from lawmakers and concerns about the technology’s potential for discriminatory pricing. In a letter to lawmakers, EVP and chief external affairs officer Peter Carter stated that Delta is not using AI to find individualized prices based on personal data.
In November, President Glen Hauenstein said that the company planned to deploy the Fetcherr-developed AI-powered pricing functionality across 20% of its domestic network by year-end. However, Carter clarified that this technology is a decision-support tool for analysts, providing insights from aggregated data rather than individual customer information.
Carter also stated that Delta has “zero tolerance” for discriminatory or predatory pricing and is evaluating the “AI pricing recommendation functionality.” The company does not share personal information with Fetcherr. Lawmakers have introduced legislation to ban companies from using AI to set prices or wages based on Americans’ personal data, including the Stop AI Price Gouging and Wage Fixing Act.
Source: https://www.theverge.com/news/717867/delta-ai-dynamic-pricing-model