Delta’s dynamic AI pricing plan sounds different now

Delta Air Lines explains more on its dynamic pricing model assisted by AI after being examined for recent prices comments.

In November, Delta president Glen Hauenstein said in a day of investors that “we will have a price available on this flight, this moment, for you, the individual”. However, the answer to the questions sent by the legislators, the vice-president of the vice-president and the external affairs chief, Peter Carter, declared in a letter that “there is no product rate that Delta has ever used, tests or plans to use who targets customers at individualized prices based on personal data.” He also says that the company has a “zero tolerance” for discriminatory or predators prices.

As part of its latest report on results, Hauenstein said that the company planned to deploy technology, developed by a company called Fetcherr, about 20% of its internal network by the end of the year.

“Our AI pricing feature is designed to improve our pricing processes for existing prices using aggregated data,” according to Carter. “This technology is a decision support tool that simply provides informed information for our analysts, which supervise and refine the recommendations to ensure that they comply with our commercial strategy.”

In his comments to investors and analysts from last year, Haunstein said that AI assumed the role of a “super analyst”, responding to real -time changes. The company’s declaration now supervises more explicitly as responding to the prices of competitors and overall purchasing trends, in order to find the highest price for a market as opposed to an individual customer.

Carter says that Delta “assesses” “AI pricing recommendation functionality” and that it does not share personal information with Fetcherr.

Carter’s letter responded to one of the Ruben Gallego (D-AZ) senators, Mark Warner (D-VA) and Richard Blumenthal (D-CT), who wrote to the CEO of Delta, Ed Bastian, expressing his concerns about technology in July. The Greg Casar (D-TX) and Rashida Tlaib (D-MI) representatives also introduced the prices and wage fixing law, which would prohibit companies from using AI to “set prices or wages based on the personal data of the Americans”.