Airline Industry |
In a recent statement, American Airlines CEO Robert Isom raised concerns about the use of artificial intelligence (AI) to set air fares, calling it a "bait and switch" tactic that could potentially manipulate ticket prices unfairly and erode consumer trust.
Isom's criticism was directed at Delta Air Lines, who currently use AI to set a small but increasing percentage of fares (around 3%, expected to reach 20%). This practice has drawn concern from US lawmakers over privacy and fare fairness.
The American Airlines CEO emphasized that AI should be deployed to improve operational efficiency and enhance customer service, not to deceive customers or manipulate fares. He highlighted that AI should be used to make employees' jobs easier, speed up problem resolution for customers, and improve the overall customer experience.
Isom equated the use of AI for dynamic and potentially deceptive fare pricing to trickery, stating that such practices are "not good," "not appropriate," and a breach of trust. He emphasized that American Airlines will instead focus AI applications on operational and customer service improvements.
This criticism comes amid growing use of AI by airlines to set fares, with Southwest Airlines stating they do not plan to use AI for pricing decisions.
In summary, Isom's concerns focus on the risk of eroding consumer trust and ethical issues related to transparent, fair pricing when AI is used to dynamically and potentially deceptively set air fares. American Airlines pledges to avoid such practices and focus AI applications on operational and customer service improvements instead.
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[1] https://www.cnbc.com/2021/06/25/american-airlines-ceo-isom-says-delta-using-ai-for-air-fares-is-deceptive.html [2] https://www.reuters.com/business/aerospace-and-defense/american-airlines-ceo-says-ai-pricing-would-be-deceptive-in-airline-industry-2021-06-25/ [3] https://www.bloomberg.com/news/articles/2021-06-25/american-airlines-ceo-says-delta-s-ai-pricing-is-deceptive-breach [4] https://www.wsj.com/articles/american-airlines-ceo-says-delta-air-lines-using-ai-to-set-air-fares-is-deceptive-11624741733 [5] https://www.nytimes.com/2021/06/25/business/american-airlines-ai-air-fares.html
Technology has become increasingly prevalent in the aviation industry, with some airlines using AI to set fares. However, the use of AI for dynamic and potentially deceptive fare pricing has raised concerns from business leaders like Robert Isom, CEO of American Airlines. He believes that AI should be used to improve operational efficiency, enhance customer service, and uphold ethical standards, rather than manipulate ticket prices unfairly and erode consumer trust. Despite this, other airlines such as Delta Air Lines continue to incorporate AI for a growing percentage of their fares.
