
FORTUNE.COM
'AI-driven pricing'
Delta moves toward eliminating set prices in favor of AI personalized ticket pricing
SUMMARY
Delta Air Lines is shifting to AI-driven pricing, aiming for 20% of ticket prices to be personalized by year-end. Currently, only 3% of prices utilize this technology, a significant increase from last year. The plan involves eliminating set prices altogether, allowing AI to determine individual fare amounts.
President Glen Hauenstein likened AI to "a super analyst" optimizing pricing continually. While Delta sees potential revenue benefits, the practice raises concerns from privacy advocates. Critics describe it as "hacking our brains" and "predatory pricing."
While differential pricing has existed, AI may deepen disparities in fare rates, leading to complications in compliance with legal standards against discrimination.
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