WASHINGTON – Transport Secretary Sean Duffy said on August 5 there were concerns about AI using it to set ticket prices for personalized airlines and he would investigate whether someone would do so.
Last week, Delta Air Lines told lawmakers they were not using and not using AI to set prices for individual consumers.
“We can assure you that someone will investigate whether they will do so based on how much you make or not and who you are, in order to individualize seat pricing,” Duffy said. “If any of the companies try to use AI to set individual seat prices, we're very involved.”
Duffy said Delta made it clear that it would not use AI to price individual tickets.
In late July, Democrat Sens. Reuben Gallego, Mark Warner and Richard Blumenthal said they believe the Atlanta-based airline would do so.
Use AI to set individual prices
which “probably means an increase in freight to individual consumers' personal 'pain points'. ”
Delta previously said it plans to partner with AI pricing company Fetcherr to deploy AI-based revenue management technology to 20% of its domestic network by the end of 2025.
Fetchel, the website, says its technology is “trusted by some of the world's leading airlines,” listing Delta, WestJet, Virgin Atlantic, Viva and Azul.
American Airlines CEO Robert Isom said last month that using AI to set ticket prices could undermine consumer confidence.
Democrats Greg Kasar and Rashida Tribe have introduced laws that prohibit the use of AI to set prices or wages based on American personal data, and will prohibit airlines from raising their personal prices, particularly after seeing searches for family obituaries.
Delta said airlines have used dynamic pricing for over 30 years, with pricing fluctuating based on a variety of factors, including overall customer demand, fuel prices and competition, but not personal information for a particular consumer. Reuters
