While major US airlines refuse to use AI to price individual consumers, the transportation sector and Democrats are threatening investigations if they do.
U.S. Transport Secretary Sean Duffy says there are concerns about the use of artificial intelligence to set prices for personalized airlines, reflecting the red flag raised by three Democrat senators.
Duffy on Tuesday promised to look into airlines that use technology to set prices.
“We can assure you that someone will investigate whether they will do so based on how much you make or not and who you are, in order to individualize seat pricing,” Duffy said.
“If any of the companies try to use AI to set individual seat prices, we’re very involved.”
Duffy said that Delta has made it clear that it will not use AI to price individual tickets.
Last week, Delta Air Lines told lawmakers they were not using and not using AI to set prices for individual consumers.
Later last month, Democrats Reuben Gallego, Mark Warner and Richard Blumental said they believe the Atlanta-based airline will use AI to set individual prices.
Delta previously said it plans to partner with AI pricing company Fetcherr to deploy AI-based revenue management technology to 20% of its domestic network by the end of 2025.
The website Fetchel says its technology is “trusted by major airlines around the world,” listing Delta, WestJet, Virgin Atlantic, Viva and Azul.
American Airlines CEO Robert Isom said last month that using AI to set ticket prices could undermine consumer confidence.
Democrats Greg Kasar and Rashida Tribe have introduced laws that prohibit the use of AI to set prices or wages based on American personal data, and will specifically prohibit the increase in personal prices after airlines have seen a search for family obituaries.
Delta said airlines have used dynamic pricing for over 30 years, with pricing fluctuating based on a variety of factors, including overall customer demand, fuel prices and competition, but not personal information for a particular consumer.
