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AI Development Advancements: Trump Unveils AI Action Plan; Delta Experiments with Individualized Pricing Strategy

U.S. unveils fresh AI strategy, while Delta Airlines contemplates individualized pricing using personal data this week.

AI Developments: Trump Unveils AI Strategy; Delta Experiments with Custom Pricing Strategies
AI Developments: Trump Unveils AI Strategy; Delta Experiments with Custom Pricing Strategies

AI Development Advancements: Trump Unveils AI Action Plan; Delta Experiments with Individualized Pricing Strategy

In the world of technology, two significant developments are making waves – the introduction of a new AI assistant for diners and a controversial AI action plan from the former U.S. administration.

Firstly, OpenTable has unveiled an AI assistant named Concierge. This clever assistant is designed to help diners research restaurants more efficiently. Concierge is embedded within the OpenTable app and desktop website, offering a free service to the public. By answering common questions such as whether a restaurant has vegan options or a kid-friendly atmosphere, Concierge alleviates the workload of restaurants, freeing them from having to respond to numerous phone calls.

Meanwhile, in the realm of government policy, the Trump AI Action Plan has caused a stir. The plan emphasises the importance of building AI systems with freedom of speech and expression at their core. It also states that AI procured by the federal government should objectively reflect truth, rather than promoting social engineering agendas. To support this, the plan directs the National Institute of Standards and Technology (NIST) to revise its AI Risk Management Framework, removing references to misinformation, Diversity, Equity, and Inclusion (DEI), and climate change, treating these as ideological biases to be excluded.

This approach contrasts with the previous Biden Administration’s stance, which highlighted algorithmic fairness and discrimination protections. Instead, Trump’s plan focuses on protecting free speech by opposing ideological constraints and prioritising what it calls objective truth, while rolling back policies seen as incorporating ideological perspectives into AI.

However, the plan has been met with criticism. Critics from civil rights organisations warn it could undermine bias protections and civil rights safeguards at state and local levels by overriding state AI regulations and stifling local efforts to regulate AI-related discrimination. Furthermore, some experts caution that this deregulatory stance might negatively impact public trust and oversight of AI systems.

In other tech news, Delta Air Lines is set to implement personalized pricing for 20% of its airfares by the end of the year, up from the current 3%. This pricing system, referred to as "surveillance pricing" by the Federal Trade Commission (FTC), is based on individual's personal data such as income estimates, browsing behavior, purchase history, or type of device used. This differs from dynamic pricing, which is determined by market factors.

Google's parent company, Alphabet, reported that AI Overviews, a search feature, has more than 2 billion monthly users across 200 countries and territories. AI Overviews also drives 10% more search queries globally. In other Google news, Google Services revenue, which includes search, subscriptions, platforms, devices, and YouTube ads, rose by 12% to $82.5 billion in the second quarter.

As for future developments, OpenAI is reportedly preparing to launch the GPT-5 model next month. The CEO, Sam Altman, has stated that GPT-5 would be an "experimental" model that incorporates new research techniques. Alphabet, on the other hand, plans to raise its capital expenditures to $85 billion this year, a $10 billion increase from its earlier forecast and a 62% jump from what it spent in 2020.

The stage is set for an interesting future in AI technology, with developments in both the private and public sectors shaping the landscape.

  1. The introduction of Concierge, an AI assistant by OpenTable, is designed to improve data-driven research for diners, answering common questions about restaurant preferences.
  2. The AI Action Plan from the former U.S. administration has caused controversy, focusing on the importance of AI systems that prioritize freedom of speech and objective truth, while criticizing ideological biases like misinformation, DEI, and climate change.
  3. Delta Air Lines is planning to increase the use of surveillance pricing, a personalized pricing system based on users' data such as income, browsing behavior, and purchase history, for 20% of its airfares by the end of the year.
  4. Google's AI Overviews search feature now has over 2 billion monthly users across 200 countries and territories, driving 10% more global search queries, and Google Services revenue has risen by 12% to $82.5 billion in the second quarter.
  5. The tech industry anticipates further developments, with OpenAI preparing to launch the GPT-5 model, incorporating new research techniques, and Alphabet planning to raise its capital expenditures to $85 billion this year, a significant increase from its 2020 spending. These advancements will likely impact the market and the regulation of AI technology in the future.

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