In an era where artificial intelligence (AI) is revolutionizing industries, American Airlines and Southwest Airlines have taken a stand against allowing AI to set their ticket prices. While tech innovation relentlessly pushes forward, some companies find value in sticking to tried-and-true methods. For now, legacy pricing tools are flying the plane.

Staying the Course with Legacy Systems

Despite the allure of AI’s potential, both airlines emphasize their reliance on traditional revenue management systems (RMS) like PROS and Sabre AirVision Revenue Manager. These systems employ historical data, booking trends, and forecasting. However, they abstain from using machine learning and generative AI models such as ChatGPT for pricing.

The Issue at Hand

The declaration from American and Southwest comes as the U.S. Department of Transportation’s inquiry into the use of AI in airfare pricing addresses concerns about potential price manipulation or collusion. The scrutiny highlights a growing unease among travelers about the implications of “algorithmic collusion,” where AI could artificially inflate prices, leaving customers to bear the burden.

Adoption of AI in Other Areas

It’s important to note that while ticket pricing remains in the hands of older systems, some airlines are experimenting with AI in areas like customer service and logistics. Yet, for American and Southwest, setting fares is still a process deeply rooted in human oversight and historical analysis, rather than the predictive prowess of AI.