CT senator sounds alarm on new AI use: hiking prices based on your private information

Artificial intelligence has potential benefits for businesses across Connecticut and the world, but U.S. Sen. Richard Blumenthal raised concerns Monday that an airline is using the technology to hike fares for consumers.

Blumenthal and two other U.S. senators sent a letter to Delta Airlines that questioned the potential use of customer details to craft prices, which the company has denied.

“Delta’s current and planned individualized pricing practices not only present data privacy concerns but will also likely mean fare price increases up to each individual consumer’s personal ‘pain point’ at a time when American families are already struggling with rising costs,” the senators wrote in a letter that was released publicly.

Before catching a plane to Washington, D.C., on Monday, Blumenthal said, “Delta has begun a new pricing tactic on a major scale. It’s experimenting with individual pricing, surveillance-based pricing, which tailors prices to individuals based on what they can afford and how much they need the ticket — not on supply and demand. So this summer, when you travel, look to the person on your left and on your right. They may be paying half of what you are — not because they’ve been farsighted, but simply because their personal information has led the airline to give them a lower fee.”

The ticket price, Blumenthal said, can be based partly on multiple factors, such as “where you live, what you have bought in the past, your social media activity — all of this personal information that is available publicly and some purchase history with Delta Airline itself — to estimate what you can afford and how much you need the tickets.” The factors could also include geolocation, web browsing, and past purchases, he said.

Blumenthal added, “They have algorithms and artificial intelligence to make the judgement, after collecting this information. … It’s a new era, based on artificial intelligence in pricing that is profoundly dangerous to personal privacy. … Delta is at the vanguard of using algorithms and artificial intelligence, and the other airlines, in effect, have been watching Delta on how it goes down with consumers.”

Delta defended its policies Monday in a statement to The Courant.

“There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal information or otherwise,” Delta said. “A variety of market forces drive the dynamic pricing model that’s been used in the global industry for decades, with new tech simply streamlining this process. Delta always complies with regulations around pricing and disclosures.”

Multiple factors are involved in setting airline prices, including jet fuel prices, the demand for seats, the date and time of the flight and the destination, among others.

Blumenthal and Sens. Ruben Gallego of Arizona and Mark Warner of Virginia have been seeking further information from the airline. At the same time, American Airlines CEO Robert Isom criticized the actions without mentioning Delta by name when asked by a financial analyst on a quarterly earnings call. He said there were concerns about data privacy and the trust of customers. The airline industry in general uses artificial intelligence for multiple matters such as predicting the weather, which is a key factor in the industry.

“The airline has said it is using this in a minor way,” Blumenthal said of Delta when asked by The Courant. “Right now, it’s about 3% to 7% of its domestic price network. It has said publicly that it plans to do 20% of all its pricing based on artificial intelligence and use of algorithms by the end of the year.”

Delta has previously said that artificial intelligence could help the airline in forecasting the demand for certain flights and routes as it constantly analyzes changing market conditions. AI technology would modernize the internal systems and accelerate the analysis of various prices.

“The history of airlines is they are more likely to raise fares and drive profit margins,” Blumenthal said. “ZIP codes certainly are a factor. Where you live — whether it’s Hartford versus New Canaan, just to apply the stereotypical kinds of differences that may apply — could well be used. But it also may be within Hartford — literally two blocks within walking distance could be factors in charging different prices.”

In a broader context, Congress does not have the immediate oversight power on the overall issue.

“Obviously, there’s no regulation right now of AI,” Blumenthal said. “So there’s no effective protection for consumer privacy, which is one of the main dangers here. We’ve been focusing on price discrimination, potential profiteering and price gouging, which is a real danger. But there’s also a jeopardy to privacy. … AI still is the Wild West, so far as consumer protection is concerned.”

Christopher Keating can be reached at ckeating@courant.com 

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Originally Published: July 29, 2025 at 5:43 AM EDT