AI Week Ahead: Delta's Pricing, AI Insurance Boom, EU Law & Robot Push
The artificial intelligence landscape is rapidly evolving, with significant developments across various sectors, from airline pricing to insurance and robotics. This week’s highlights underscore the growing integration of AI into everyday operations and the regulatory and ethical considerations that accompany this technological shift.
Delta’s AI Pricing Strategy Under Scrutiny
Delta Air Lines has made headlines as it expands its use of artificial intelligence to set ticket prices, aiming to apply AI-driven dynamic pricing to 20% of its domestic flights by the end of 2025, up from a current 3%. This move is part of a broader industry trend, with projections indicating that 73% of airlines will implement AI-driven pricing models by 2025. These AI systems analyze real-time data on demand, competitor activity, and historical booking patterns to dynamically adjust fares.
However, Delta’s approach has drawn criticism from U.S. lawmakers and consumer advocates who express concerns about potential price discrimination and the use of personal data. Senators Ruben Gallego, Mark Warner, and Richard Blumenthal sent a letter to Delta, questioning whether the airline would use AI to set individualized prices based on personal data, which could lead to fare increases based on a consumer’s “pain point.” Delta has responded by stating that its ticket prices are “dictated by market dynamics and vigorous competition” and that it does not use personal data to set individualized prices. The airline clarifies that its AI-based revenue management technology, developed in partnership with Fetcherr, is intended to assist analysts by streamlining processes, accelerating analysis, and improving time to market for pricing adjustments. The Federal Trade Commission (FTC) and Department of Transportation (DOT) are expected to issue AI pricing guidelines in 2025, with Delta’s use of customer lifetime value metrics likely to be scrutinized.
Booming AI Insurance Market
The artificial intelligence market within the insurance sector is experiencing exponential growth, projected to reach $10.27 billion in 2025 from $7.71 billion in 2024, demonstrating a compound annual growth rate (CAGR) of 33.3%. This growth is driven by several factors, including the explosion of data in insurance, the need for enhanced risk assessment and underwriting, improved fraud detection and prevention, and a focus on customer experience enhancement and operational efficiency. By 2025, it is anticipated that 40% of insurers will employ AI as functional teammates to assist in claims management, fraud detection, underwriting, policy renewals, and customer service. Insurers are increasingly investing in AI, with 89% earmarking budgets for generative AI, which is expected to enable hyper-personalized experiences, tailoring interactions, policy management, and claims processes based on individual customer preferences. While AI offers significant benefits, the industry is also cautious due to potential risks, including job displacement in certain areas and the challenge of integrating new technologies.
EU’s AI Law Kicks In with Phased Implementation
The European Union’s Artificial Intelligence Act, which officially entered into force on August 1, 2024, is progressing through a phased implementation. As of August 2, 2025, governance obligations for providers of General-Purpose AI (GPAI) models have become applicable. This means that GPAI models, even those considered less risky than high-risk systems, must adhere to various compliance requirements, including providing technical documentation, implementing copyright law compliance policies, and offering detailed information on training datasets. The European Commission’s AI Office is working on a General-Purpose AI Code of Practice to provide further guidance. The full application of the Act, particularly for “high-risk AI systems,” is set for August 2, 2026.
China’s Humanoid Robot Push
China is making significant strides in the humanoid robot industry, with new startups emerging frequently and accounting for almost 60% of funding for humanoids in Asia. Recent developments highlight advanced capabilities in Chinese humanoid robots. AiMOGA Robotics recently unveiled its humanoid robot, Mornine, capable of autonomously opening car doors without human intervention, showcasing a move from simulation to real-world service. This robot learned through reinforcement learning, demonstrating a significant leap in autonomous capability. Furthermore, Chinese startup Robotera introduced the L7 humanoid robot, which can sprint at speeds up to 9 mph, making it the fastest humanoid robot to date, and demonstrating exceptional dexterity and strength for complex tasks. Shanghai Electric also debuted its industrial humanoid robot, “SUYUAN,” at the World Artificial Intelligence Conference (WAIC) 2025, designed for complex industrial environments with 38 degrees of freedom and strong on-device computation power for precise operations and dynamic movements. The market for Chinese humanoid robots is expected to reach 8.239 billion yuan in 2025, representing about 50% of the global market, with price competition beginning to emerge as leading enterprises accelerate mass production.