Delta's A.I. Gamble

The airline is pricing a tiny portion of its network using generative A.I. It wants to expand that test because early returns have been strong.

Nov 25, 2024

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Dear readers,

While one of its main competitors invests in continuous pricing, Delta is making a big bet on using artificial intelligence to allocate inventory, guided by traditional revenue management techniques. Delta is pricing about 1 percent of its O&Ds using a generative A.I. pricing engine from Fetcherr, an Israeli startup, and soon will roll it out in a "much more significant way," airline president Glen Hauenstein told investment analysts on Wednesday.

Delta's A.I. Gamble

The airline is pricing a tiny portion of its network using generative A.I. It wants to expand that test because early returns have been strong.

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