Delta Air Lines aims to use AI for personalized ticket pricing. Senators Ruben Gallego, Mark Warner, and Richard Blumenthal raised concerns about privacy implications and the potential for higher fares tailored to each consumer's willingness to pay. Delta's president announced a goal to expand this pricing approach to 20% of its network by year-end, up from 3%. The company asserts it does not use personal information in its pricing strategy and emphasizes its ongoing testing phase for AI pricing systems.
Delta's current and planned individualized pricing practices not only present data privacy concerns, but will also likely mean fare price increases up to each individual consumer's personal 'pain point' at a time when American families are already struggling with rising costs.
We're in heavy testing phase. We like what we see, Hauenstein said in July. We like it a lot and we're continuing to roll it out.
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