Delta Airlines plans to expand AI usage in what area, causing concerns?

• A. Flight scheduling
• B. Individualized prices
• C. Customer service
• D. Automated check-in

Answer: (B)

Delta Airlines' plans to expand AI usage in individualized pricing has raised concerns primarily related to fairness and accessibility. Individualized pricing involves using algorithms to analyze consumer behavior and demographic information to set prices that can vary significantly from one customer to another. While this approach can optimize revenue for the airline and offer tailored pricing for some customers, it can also lead to perceptions of inequality.

Consumers worry that this practice may discriminate against certain groups based on data points such as income level or previous purchasing behavior. Additionally, there is the potential for customer dissatisfaction if they feel they aren’t getting a fair deal compared to others. These concerns about pricing equity and transparency in the use of AI technology highlight the balancing act companies like Delta must perform as they incorporate advanced analytics into their pricing strategies.

In contrast, while other areas such as flight scheduling, customer service, and automated check-in also involve AI, they do not typically invoke the same level of ethical concern regarding pricing disparities.