Delta's recent announcement to use AI for fare setting led to consumer backlash due to fears of price gouging and data privacy issues. The airline clarified that it would not employ AI to create personalized fares based on consumer data, but rather enhance existing dynamic pricing practices. Nevertheless, customers remain concerned about potential abuse, especially in markets with limited flight options. Experts indicate that consumer trust in AI is low, necessitating careful communication on its applications, while investors continue to favor AI for its efficiency potential.
Delta's use of AI for pricing has provoked consumer backlash, raising concerns about personal data usage and price discrimination while investors remain supportive of efficiency gains.
Brent McDonald highlighted the potential for abuse in price strategies, noting Delta's monopoly in certain markets and how that could exploit consumers through AI.
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