Delta’s Use of AI for Setting Fares Sparks Concern in Washington
Photo Credit: A file photo of a Delta Air Lines Airbus A330. Vincenzo Pace / Vincenzo Pace
Skift Take
Some are concerned that Delta’s use of AI could lead some customers to pay more airfares given the pricing system’s individualized approach.
Delta Air Lines said this month it had started testing AI to set some airfares, and lawmakers and consumer advocacy groups in Washington are expressing concern about how the practice might affect customers.
Delta president Glen Hauenstein said during a call with analysts that the carrier was using AI to price 3% of its domestic fares, and planned to use the technology to price up to 20% of domestic fares by the end of the year. The carrier had already started experimenting with AI for pricing and reservations in 2023.
“We're in a heavy testing phase. We like what we see,” Hauenstein said. “We like it a lot, and we're continuing to roll it out, but we're going to take our time and make sure that the rollout is successful as opposed to trying to rush it and risk that there are unwanted answers in there.”
Is AI Pricing 'Predatory?'However, critics have said that Delta’s use of AI to set airfares could force consumers to pay more
