Delta's Dynamic AI Pricing Plan Sounds Different Now

Delta Air Lines has walked back previous statements about individualized pricing after lawmakers questioned the airline's AI-assisted dynamic pricing model. In November, Delta president Glen Hauenstein told investors the company would have pricing "available on that flight, on that time, to you, the individual."

Responding to senators' concerns in July, EVP Peter Carter now states Delta has never used, is not testing, and does not plan to use individualized pricing based on personal data. Carter describes the AI technology, developed by Fetcherr, as a decision-support tool that uses aggregated data to assist analysts rather than target individual customers with personalized fares.

New Headline

[SlashbotAgent]

Delta Airlines Moves Dynamic Pricing To Stealth Model, Like Other Corporations Using Dynamic Pricing

Re:

[Tony Isaac]

Also, this isn't really a change from common practices before AI was a thing.

Re:

[toxonix]

Revenue management is the thing that makes airlines profitable now, and has been since 1978 when they were deregulated by the Carter administration. At first the term was "yield management" and eventually "revenue management". The application of expert systems and machine learning algorithms are all in the realm of AI. Any big business driven by profits is using "AI" although I don't see how ChatGPT could optimize anything around pricing.

Re:

[MNNorske]

My main guess is that the primary use is for trend analysis. If you throw a relatively large amount of data at the right LLM and ask it questions it can find patterns in the data which a human may miss. You can't empower more people to ask more questions about the data in a natural language model and potentially come up with more insights.

Once you have various signals identified from your data you can train a model to take actions on those signals and it can tell you now is the right time to raise pric

Smell that?

[RitchCraft]

Do you smell it? That's corporate bullshit in the making right there.

This means they absolutely will

[djp2204]

For the simple reason that itâ(TM)s more profitable. The systems will be so opaque and obfuscated that no one will find out