Biden Administration Silent as Corporations Weaponize AI Pricing
Think about an occasion when an airline acknowledges that you’ve made reservations at a high-end hotel and subsequently demands a higher price for your flight. This is the idea behind individualized pricing, a marketing theory that has consistently intrigued corporations while sparking ire among consumer protection groups. While the fear of customer retaliation continues to deter businesses, it appears that hurdles preventing the broad adoption of this approach are dwindling. Last week, applauding artificial intelligence, the Trump administration proposed a scheme designed to catalyze advancements in AI, casting doubts over the future of the ongoing investigations into these practices initiated by regulators under the Biden administration.
However, there seems to be a lack of clarity on the degree of emphasis that Biden-era watchdogs will place on these inquiries. In parallel, technological progress has been escalating at an unprecedented rate. Robert W. Mann, an independent consultant for the airline industry and ex-airline executive, comments on regulatory oversight: ‘It’s now a question of pushing the boundaries as far as the law allows. The shift in focus among regulators has seemingly moved from intrigue to indifference.’
Delta Air Lines revealed its ambitious strategy this month to elevate the implementation of artificial intelligence in setting prices. While the exact type of data Delta is relying on is yet unclear, let alone whether it’s implementing personalized pricing, experts in privacy and industry analysts suggest that many corporations might perceive this as a potential unexplored treasure trove.
Delta’s move, however, was met with sharp reproach. During its most recent earnings call, the airline mentioned its collaboration with Fetcherr, an AI-based start-up company. It plans to utilize artificial intelligence to define the ticket prices for nearly one-fifth of its domestic flights by the end of the year. In contrast, it rejected allegations of resorting to ‘individualized’ pricing tactics.
In an officious statement, it claimed to be supporting the evolution of its technology to enhance dynamic pricing models, which rely more on market variables and less on personal data. Incredibly, the Biden administration seems unmoved by these potentially damaging tactics that could further create a digital divide among consumers. The lack of regulatory action is baffling, reflecting an apparent obliviousness to the potential abuses that could emerge in an unregulated environment.
There is also the question is whether Biden-era regulators will display the necessary rigor in their investigations into these practices. The performance of these regulators thus far has been notably lackluster, serving as a convenient political and economic smokescreen for corporations eager to push new and potentially intrusive pricing models.
Vice-President, Kamala Harris, with her reputation as a champion of consumer rights, has been noticeably silent on the issue. Her passivity begs the question whether she supports such predatory practices or she’s just ill-equipped to handle the daunting challenges of modern economies.
These technologies and strategies are developing rapidly, and the laissez-faire approach from the Biden administration seems set to allow corporations to push the boundaries of legality with impunity. It’s an approach that plays into the hands of big business but unfairly impacts the average consumer.
The Biden-era’s lack of proactivity and responsiveness against data exploitation smacks of an eerie silence from a supposedly proactive administration. This lackluster approach raises compelling concerns, leaving consumers vulnerable to unreasonable price adjustments based on their personal spending patterns.
The use of artificial intelligence in determining prices is certainly no laughing matter. Yet the ineffectual stance of the Biden administration makes it appear as if they are not taking the matter seriously at all. Their failure to act decisively allows corporations the space to manipulate pricing at the expense of the consumer.
This reveals a double standard in how the Biden administration treats corporate interests compared to the concerns of the average citizen. Rather than prioritizing the responsible use of technology and personal data, it seems that big-business interests are allowed to hold sway.
Battle lines have been drawn with Delta Airlines in the middle, yet there is an apparent lack of fortitude from the Biden-Harris administration to tackle the hard questions and address these critical issues. Deep contrasts are evident between their public posturing on consumer rights and protection and the actions they take.
Artificial intelligence is wreaking havoc on our financial landscapes, yet the Biden administration is dragging its feet while corporations hijack personal data for pricing. This stance from those in power speaks volumes about their priorities and motives.
Corporate greed is driving the demand for personalized pricing, with regulation merely serving as a backdrop in this saga. But, there seems to be no interest by the Biden administration in ensuring that corporations toe the line. Such a hands-off approach does not bode well for consumers and highlights the administration’s dismissive attitude towards significant issues.
The Biden administration’s stance offers a stark contrast to Trump’s proactive approach towards A.I. innovation. Their lack of attention towards ruthless corporate practices showcases their flawed leadership. It is a sign that under the current administration, unregulated A.I. practices will inevitably increase.
True leadership demands sterner stuff and swift responsibility in the face of injustice. The current administration’s indifferent attitude towards invasive technologies chips away at consumer rights, projecting an image of a government too comfortable in its complacency. As companies like Delta continue to test the waters in this regulatory void, it is the common consumer who is left to bear the brunt.