Delta Air Traces fired again at lawmakers this week, defending its use of synthetic intelligence in pricing airfare.
In a letter to a few lawmakers reviewed by TPG, the Atlanta-based provider once more insisted it is not tapping into buyer information or focusing on particular person customers as a part of a brand new AI-assisted pricing program.
Delta particularly disputed issues raised by three Democratic senators who, final month, accused the airline of “individualized” and “surveillance” pricing.
“That is incorrect and this assumption, sadly, has created confusion and misinformation within the public discourse,” Delta Chief Exterior Affairs Officer Peter Clark wrote in a letter Thursday. “Moreover, we’ve got zero tolerance for discriminatory or predatory pricing and absolutely adjust to relevant legal guidelines in privateness, pricing and promoting.”
Delta first revealed it was utilizing AI on a small portion of home bookings final fall, likening the know-how to a “tremendous analyst” aiding its human income administration employees.
By final month, the provider had integrated AI on about 3% of its domestic routes via a partnership with tech agency Fetcherr, Delta President Glen Hauenstein mentioned, noting the provider hoped to extend its AI utilization to about 20% of routes by the top of 2025.
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That revelation drew scrutiny from Capitol Hill to the C-suite of prime rivals.
Senators Mark Warner (a Democrat from Virginia), Ruben Gallego (a Democrat from Arizona) and Richard Blumenthal (a Democrat from Connecticut) penned a letter to the airline final month, demanding extra readability in regards to the firm’s AI pricing techniques.
Then, final week, American Airways CEO Robert Isom mentioned Delta’s use of AI was “not applicable” and contended American did not plan to make use of AI in its fare-pricing practices.
Responding this week, Delta mentioned its new AI program was merely a “decision-support software” that forecasts demand and recommends fares primarily based on lots of the similar enterprise issues which have dictated fares for many years, from reserving patterns to route competitors and gasoline costs.
In some circumstances, Delta’s AI software recommends cheaper fares — presumably when seats aren’t promoting.
Delta famous it is also integrating AI into different components of its enterprise, together with in customer support and in predicting when a airplane or plane half may want upkeep.
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