According to CNBC, Delta Air Lines has assured United States lawmakers that its artificial intelligence pricing system will not use personal information to set individualized fares. The airline made this commitment following congressional scrutiny over its expanding use of AI technology for ticket pricing.

Delta currently uses AI to determine prices for approximately 3% of its domestic flights. The company plans to expand this to 20% by the end of 2025. The AI system, developed through a partnership with Israeli startup Fetcherr, acts as what Delta President Glen Hauenstein calls a "super analyst" working around the clock.

The assurance came after three Democratic senators sent a letter to Delta CEO Ed Bastian expressing concerns about data privacy. Senators Ruben Gallego, Mark Warner, and Richard Blumenthal questioned whether the airline would use personal data to set prices at each consumer's "pain point."

Why This Congressional Response Matters

This development represents the first major regulatory pushback against airline surveillance pricing in the United States. Fortune reports that privacy advocates have compared Delta's AI pricing to "hacking our brains" to determine maximum willingness to pay.

Consumer advocacy groups warn that surveillance pricing typically gives better deals to wealthy customers while charging higher prices to lower-income travelers. The practice raises particular concerns during a period of widespread inflation affecting American households.

The congressional intervention comes as the Federal Trade Commission actively studies surveillance pricing across multiple industries. Early FTC findings show that at least 250 companies use consumer data ranging from mouse movements to shopping cart abandonment to customize pricing for individual customers.

Industry Transformation Through AI Pricing Systems

Delta's AI pricing expansion represents a broader shift across the airline industry toward algorithmic fare determination. PYMNTS reports that the system differs from traditional dynamic pricing by focusing on individual consumer characteristics rather than market-wide supply and demand factors.

Airlines have historically used different pricing for different customer segments through advance purchase requirements and Saturday night stays. However, AI-powered systems can process vastly more data points in real time. This technology enables airlines to move beyond broad customer categories toward individual pricing decisions.

Competition within the industry remains divided on AI pricing adoption. Some carriers view the technology as essential for revenue optimization, while others express concern about customer trust and transparency. Industry analysts predict that successful implementation at Delta could accelerate adoption across major airlines within the next two years.

Regulatory uncertainty continues to shape industry approaches to AI pricing. While differential pricing remains legal under federal law, the use of certain data types could create compliance challenges. European regulations like GDPR may limit how airlines collect and use personal data for pricing decisions.

Further Reading

For deeper insights into global adoption trends, our Alternative Financial Systems Index tracks regulatory frameworks and adoption metrics across 50 countries. The index provides comprehensive analysis of how different jurisdictions approach AI-driven pricing systems and consumer protection measures.