Delta Air Lines is facing backlash for its expanded use of artificial intelligence (AI) to set fares, amid claims it does not engage in personalized pricing. Despite this, Delta and other airlines are collaborating with AI firms that promote hyper-personalized pricing methods, leveraging surveillance and data collection to alter prices for individual customers. Delta aims to set 20 percent of domestic fares using AI technology by year-end, leading to legal and ethical concerns among lawmakers and travelers about the implications of such pricing strategies on consumer privacy and market fairness.
Many airlines, led by Delta, are working with AI consulting companies that boast of their hyper-personalized price setting, laying the groundwork for economy-wide surveillance pricing.
Personalized pricing leverages surveillance techniques and data collection to target individual prices for each customer based on their personal information.
Delta President Glen Hauenstein stated on an earnings call, 'We like what we see and we're continuing to roll it out, announcing that the airline planned to set 20 percent of domestic fares with AI tools by the end of the year.'
Delta's recent efforts have sparked pushback from federal lawmakers and travelers, with the airline now denying it will use AI to target consumers based on unique personal data.
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