Delta moves toward eliminating set prices in favor of AI that determines how much you personally will pay for a ticket
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Does the AI know that it would have to pay me to fly Delta? Has it been trained on that data?
No but I’m sure it will be informed by Facebook when your best friend dies and when the funeral will be so that flight will cost twice as much.
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Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”
How long until they are found price-gouging people in certain demographics?
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why should they? it's basically just a worse version of scaling prices by income, something the government loves doing.
thats a dishonest argument. One has a money assembly line straight to a billionaire's house. The other's assembly line that has a possibility to be used for public good.
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that's econ 101.
Also the poor should have not seemed desperate.
Econ 101 also states that a failed business stops existing. In reality, failed businesses are endlessly bailed out as "too big to fail" and they pay their executives bonuses with that bailout money while continuing to rip off customers along with the other one or two companies in the same industry that do the same.
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How long until they are found price-gouging people in certain demographics?
Somehow me think that AI will be used to increase prices where it can, but not the other way around
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They left it until the very end of the article:
Early research on personalized pricing isn’t favorable for the consumer. Consumer Watchdog found that the best deals were offered to the wealthiest customers—with the worst deals given to the poorest people, who are least likely to have other options.
This is honestly surprising to me. Wouldn't they charge wealthy people more because they could just suck up the higher prices?
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Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”
AI does calculation
...processing...
Done!
Answer = 0$
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Brb, shredding for my next holiday, hoping to book in featherweight class.
finally a decent reason to lose weight. longer life? pfft? have you seen this shit? and there's no amount of weight I can lose to look better lol.
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Oh good. Then it will know I'm too broke to fly.
ETA The real joy will be when someone charts prices and notices nonwhites are disproportionately overcharged, for which Delta will be responsible during the class action lawsuit.
And saying but the algo / AI did it will be as useful as saying but that's the fault of our sales people who get commissions.
And saying but the algo / AI did it
Sure, the algo did it. But someone chose to use it and continue using it.
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Shit like this is just another reason that I won't fly. Fucking cunts.
I minimize air travel to the extent possible. Unfortunately I have non-local family so unless I choose to just not see them my choices are a bit limited.
But yeah, I don't fly for tourism or leisure.
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Customers aren't happy when the call in!
Also
As if I needed any more reasons to not buy HP products.
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The Air Canada AI chatbot gave wrong policies to someone around bereavement flights, went to court, and Air Canada lost having to refund the ticket price difference.
They tried to claim they weren't responsible for the Ai.
How can I mislead you? Air Canada found liable for chatbot's bad advice on bereavement rates | CBC News
Air Canada has been ordered to pay compensation to a grieving grandchild who claimed they were misled into purchasing full-price flight tickets by an ill-informed chatbot.
CBC (www.cbc.ca)
So at least in Canada we have some precedent that if their AI pricing fucks up, it's their own fault.
They tried to claim they weren’t responsible for the Ai.
Why wouldn't they be? They made the decision to use (and continue using) AI.
If someone gets drunk, they can't turn around and say "it was the alcohol's fault, not mine."
My question is rhetorical. I know the answer is: corporations, lobbying, and money. At least that's what I'll expect in the U.S.
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Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”
This is already how it has worked forever and AI was not needed. Try it yourself using different devices or times of day.
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I minimize air travel to the extent possible. Unfortunately I have non-local family so unless I choose to just not see them my choices are a bit limited.
But yeah, I don't fly for tourism or leisure.
Yeah, options are:
- 2-3 days driving
- 5? days on a train
- 4-5 hours on a plane
Oh, and the plane is very attractive price-wise.
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You can actually already do this to an extent. Make certain bookings from a different country by VPN and it will affect your price (for the same flight/hotel/etc). I tried this a year ago and it made a difference!
So ... wait for the EU to outlaw this practice as price gouging, then use a VPN to appear to be buying from the EU?
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Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”
But AI allows us to turn talentless hacks into “artists”! How on earth can such a blessing be used for bad!!
Woe to all of us!
(obligatory s/)
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If that’s all it was, it wouldn’t be bad. Unfortunately the reason they want to use ai is because it will be more complicated than that. Think - you need to fly somewhere vs you are thinking of flying somewhere. Data brokers will provide the ai with information about your job, your (and your family’s) health, funerals, etc.
I'm mostly thinking it will end up with delta losing money because people just won't fly on delta if it costs more
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It's coming to your groceries and gas stations soon enough. Thanks to that wireless identification marker you carry in your pockets
Thanks to facial recognition. Your expensive spying device is just what collects the data to drive the algorithm.
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Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”
Thank god for GDPR. We Europeans, according to GDPR article 22, have a right to object to automated decision making without having service denied.
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How long until they are found price-gouging people in certain demographics?
About the same time that all 4 other airlines decide to do the same or worse.
