Edinburgh Airport accused of "arbitrary" AI-generated parking prices
Edinburgh Airport accused of "arbitrary" AI-generated parking prices
Occurred: September 2024
Report incident 🔥 | Improve page 💁 | Access database 🔢
Edinburgh Airport is under fire from drivers, passengers and politicians for inconsistent parking prices resulting from a partially AI-powered pilot scheme.
The airport has been testing a real-time system that generates varying quotes for parking, with some prices determined by AI and others set by staff.
The AI system uses real-time data analysis to adjust prices based on various factors, including demand fluctuations, competitor pricing, and customer behaviour, thereby allowing for rapid price changes intended to optimise revenue.
But the system generated inconsistent and seemingly abritrary discrepancies, described by drivers as a "lottery effect." One a customer received a quote of GBP 69.99 while his wife was quoted GBP 75.99 for the same service during the same time period.
The Scottish Passenger Agents Association (SPAA) criticised the trial, arguing that these kinds of experiments should take place in controlled environments rather than impacting travelers directly. The SPAA emphasised the need for consistency, fairness, and transparency in pricing, which it regards as essential for customer satisfaction.
These concerns were echoed by local politicians, including Scottish Conservatives transport spokesperson Graham Simpson, who called the situation "worrying" and urged the airport to ensure equitable treatment of customers.
Edinburgh Airport acknowledged the issue, saying it was evaluating the effectiveness of the AI trial and its potential adoption based on the findings from the pilot.
Dynamic pricing
Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, and variable pricing is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands.
Source: Wikipedia 🔗
Unknown
Operator: Edinburgh Airport customers
Developer:
Country: UK
Sector: Travel/hospitality
Purpose: Calculate price
Technology: Machine learning; Pricing algorithm
Issue: Accuracy/reliability; Ethics/values; Fairness
Transparency: Governance
Page info
Type: Incident
Published: September 2024