The Delta scandal highlights the importance of transparency
Delta Airlines has a long history of delivering quality products and services. “zero tolerance for discriminatory or predatory pricing” Only aggregate data is fed to its AI system “to enhance our existing fare pricing processes.”
Carter clarified that fares are not based on personal information of customers. “all customers have access to the same fares and offers based on objective criteria provided by the customer such as origin and destination, advance purchase, length of stay, refundability, and travel experience selected.”
Carter said that AI can result in lower or higher prices, but no personalized fares. Delta will instead use AI pricing. “enhance market competitiveness and drive sales, benefiting both our customers and our business.”
Carter explained that the AI system takes into account a number of factors. “customer demand for seats and purchasing data at an aggregated level, competitive offers and schedules, route performance, and cost of providing the service inclusive of jet fuel.” This could mean that a competitor’s promotion or schedule changes could trigger the AI to lower prices in order to remain competitive. Or it could increase prices due to rising fuel costs, to help increase revenues or meet business objectives.
“Given the tens of millions of fares and hundreds of thousands of routes for sale at any given time, the use of new technology like AI promises to streamline the process by which we analyze existing data and the speed and scale at which we can respond to changing market dynamics,” Carter wrote.
He explained that the AI system helps Delta aggregate buying data for specific routes and flight, adapt to new markets conditions, and factor in “thousands of variables simultaneously.” AI could also be used to improve flight availability or assist reservation specialists in answering complex questions or resolving disputes.
You can also read about it here “to reiterate, prices are not targeted to individual consumers,” Carter emphasized.
Delta also stated that customers do not have to log in when searching for tickets. This means they can search for flights and find the best deals without having to share any personal information.
The Delta scandal may teach AI companies a valuable lesson about the importance of transparency. The Delta scandal may have a lesson for AI companies that are paying attention to the backlash. It could be a lesson about the value of transparency.
