Delta Air Lines is testing artificial intelligence technology developed by the startup Fetcherr to set dynamic airfare prices on approximately 20% of its domestic routes by the end of 2025. The AI system, described as a "super analyst," processes vast amounts of aggregated data to optimize revenue, with pricing expected to fluctuate rapidly in ways that exceed human cognitive capabilities. Delta maintains that the AI does not use individualized personal data for pricing decisions, though this has raised concerns about the ability to audit fairness in real time. The approach has drawn criticism and regulatory attention, with U.S. Transportation Secretary Pete Buttigieg stating the Department of Transportation will investigate any airline employing AI to personalize ticket prices. Industry observers warn that such AI-driven dynamic pricing could lead to an "exploitation phase" in airline revenue management, potentially reducing opportunities for consumers to find cheaper fares. The development marks a significant shift in how airlines manage pricing, prompting debate about transparency, fairness, and regulatory oversight in the use of AI for ticket pricing.
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