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.”
They buy aggregated data from every other company and organisation in existance. That includes your purchase history and behaviour in great detail. Of course they will also have the data of your relatives and friends, which they will take in to account.