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3w ago

Delta Assures Lawmakers Its AI Pricing Relies Solely on Aggregated Market Data

The carrier is testing AI pricing on about 3% of domestic fares with a plan to hit 20% by year-end under growing regulatory scrutiny.

A Delta Air Lines Boeing 737-800 plane sits at the gate at LAX airport in Los Angeles, California, U.S., April 1, 2018. REUTERS/Lucy Nicholson/File Photo
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Overview

  • Delta told Senators Gallego, Warner and Blumenthal in a Friday letter that it does not use personal data to set individualized fares.
  • The airline’s AI tool draws only on market signals such as route demand, competitor offers and fuel costs to recommend ticket prices.
  • Delta currently has the system deployed on roughly 3% of its domestic network and plans to expand its use to 20% by December.
  • A Federal Trade Commission review, Congressional inquiries and a House bill seeking to ban AI-based personalized pricing have intensified oversight.
  • Consumer advocates and industry experts warn that opaque machine-driven pricing could push fares higher and erode traveler trust.