Delta Air Lines has vociferously defended its innovative artificial intelligence pricing tool against a recent wave of criticism, unequivocally refuting claims of “individualized pricing” and clarifying its actual operational framework.

The controversy ignited last week when prominent U.S. senators publicly expressed concerns over the potential misuse of customers’ personal data to determine flight costs, sparking widespread debate across media outlets and among the public regarding consumer data privacy.

In response, Delta has firmly denied these allegations, emphasizing that its AI pricing system is not designed to target individual consumers. The airline clarified that the technology is currently being tested on a small segment of its domestic network, with plans for a measured expansion throughout the year.

Despite initial media suggestions that Delta Air Lines was leveraging personal booking habits or browsing history for tailored ticket prices, the company asserted that its airline technology instead optimizes existing fare structures through the analysis of aggregated, not individual, data. This distinction is crucial in understanding its approach to pricing strategy.

A Delta spokesperson elaborated that their AI-powered pricing functionality acts as a sophisticated decision-support tool. It provides informed insights for human analysts who then oversee and fine-tune recommendations to align with the airline’s broader business strategy, ensuring a balanced approach to air travel costs.

Furthermore, Delta highlighted that its booking process does not necessitate customers logging in or sharing personal information, reinforcing its stance against individualized targeting. The AI tool’s primary purpose is to enhance and accelerate the scope of data analysis for fare determination, streamlining previously manual processes.

Amidst these developments, U.S. lawmakers have proposed the “Stop AI Price Gouging and Wage Fixing Act,” aiming to prevent companies from implementing the very kind of targeted pricing strategy Delta was accused of. This legislative move underscores growing concerns about airline technology and its ethical implications.

It’s noteworthy that other major U.S. carriers, such as American Airlines and United Airlines, are also integrating AI into their operations, though with varying applications. While United employs AI for flight status updates to boost customer satisfaction, American’s CEO has explicitly stated his airline will not utilize AI for price determination, illustrating diverse industry approaches to this evolving technology.