Delta Airlines has been met with swift backlash over its plans to use artificial intelligence (AI) to set fares. The airline claims it is not using AI to target customers with individualized offers based on personal data, but rather to improve existing dynamic pricing practices.
When Delta announced in November that 1% of its network had fares set using AI, some consumers expressed concern about potential price gouging and data privacy issues. The airline responded by stating that it was not collecting or using personal data to set prices.
However, lawmakers sent a letter to Delta demanding answers about the use of AI in pricing, citing concerns about data privacy and the potential for price discrimination. Industry experts say that transparency is key when adopting new technology like AI, and companies should prioritize improving customer experience over increasing profits.
Delta’s lack of details on its initial public discussions of using AI led some consumers to worry about worst-case scenarios. To address this, industry experts recommend that companies provide clear explanations about how they are using AI and offer options for customers who may not want their data used.
The airline has shared more details about how it is using AI, including forecasting demand for specific routes and aggregating purchasing data. However, some experts warn that companies should focus on improving customer experience rather than just boosting profits.
Delta’s use of AI in pricing raises important questions about trust and transparency in the age of technology. As one expert noted, “Trust in AI arrives by a mule, it leaves on a Maserati.” Companies must prioritize building trust with their customers to ensure successful adoption of new technologies like AI.
Source: https://www.businessinsider.com/delta-ai-pricing-backlash-shows-tightrope-companies-walk-ai-adoption-2025-8