Delta Airlines is increasingly relying on AI algorithms to set prices for fares on its flights. This shift is met with skepticism from American Airlines CEO Robert Isom, who believes utilizing AI in this manner is inappropriate and would not be adopted by his airline. Concerns around potential risks associated with AI, such as errors leading to incorrect fare information, further complicate this technological adoption. Additionally, regulatory questions arise as senators express concerns over the implications of using AI for personalized pricing.
American Airlines CEO Robert Isom expressed skepticism about using AI to determine airfares, stating, "I don't think that's appropriate." He indicated that the airline would not implement such practices.
The concerns among airline executives stem from the potential for AI-induced errors, highlighting a recent Canadian court ruling against Air Canada for misleading information provided by a chatbot.
Senators Mark Warner, Ruben Gallego, and Richard Blumenthal questioned Delta's AI pricing approach, noting that "individualized pricing" alters traditional pricing structures to match individual consumers' willingness to pay.
Delta Airlines plans to increasingly rely on algorithms to set prices for flights, reflecting a trend toward AI in fare determination, despite skepticism from other industry leaders.
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