Overview
- Senators Ruben Gallego (D-Ariz.), Richard Blumenthal (D-Conn.) and Mark Warner (D-Va.) wrote to Delta CEO Ed Bastian demanding answers by August 4 on the data inputs and safeguards underpinning the airline’s AI-driven fare model.
- Delta is currently testing AI-based dynamic pricing on about 3 percent of its domestic network in partnership with Israel-based Fetcherr.
- The airline plans to expand the system to cover 20 percent of domestic fares by the end of 2025.
- Delta says its fares are publicly filed and based solely on trip-related factors, and it denies using individualized personal information to set prices.
- Lawmakers and privacy experts warn that AI-driven individualized pricing could exploit sensitive consumer data to push fares toward each passenger’s maximum willingness to pay, risking discriminatory outcomes.