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Democratic senators demand answers from Delta Air Lines about its AI ticket pricing plans, citing concerns over fare increases targeting consumers' "pain points."
Scott Keyes argues that AI-powered dynamic pricing could introduce new complications—but could also help lower costs.
Three U.S. senators are looking to crack the code behind Delta's goal of using AI to set 20 percent of domestic prices by the end of 2025.
Delta Air Lines is using AI to set personalized ticket prices based on your booking history, loyalty status and browsing behavior, expanding from 3% to 20% of flights by year-end.
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Delta President Glen Hauenstein said during the carrier's Q2 earnings call this month that the airline has begun using AI to determine personalized ticket prices, setting about 3% of its fares today, with plans to scale that to 20% by the end of the year.
Sen. Ruben Gallego led a letter to Delta asking about its new AI-driven pricing plan, which would individualize ticket prices based on user data.
The technology uses interest in specific routes and flights, flight time and date, customer demand, the price of jet fuel.
It’s a new era, based on artificial intelligence in pricing that is profoundly dangerous to personal privacy,” CT’s U.S. Sen. Blumenthal said.