Delta Air Lines Defends New AI Pricing Tool Amidst Waves of Criticism and Allegations of Misinformation

Delta Air Lines has responded to criticism regarding its artificial intelligence (AI) pricing tool, following concerns about “individualized pricing.” In a letter, Delta clarified that it does not target customers with personalized fares based on personal data. Instead, the AI tool, developed by Fetcherr, analyzes aggregated data to optimize pricing for about 3% of its domestic network, aiming to scale this to 20% by year’s end. Delta emphasized its compliance with regulations, asserting that all customers have equal access to fare options. The airline’s Chief External Affairs Officer, Peter Carter, stressed that the AI tool enhances existing pricing processes and only supports analysts in making informed decisions. Delta is exploring AI applications in customer service, technical operations, and crew scheduling, while competitors like American and United Airlines are also integrating AI technologies. Notably, Delta remains committed to fair pricing practices amid legislative scrutiny around potential price gouging.

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