Hi Airborne,
It is more like Self Adjusting.
When you Add weight to the bike, like a passenger, and the suspension compress's and lowers the rear of the bike, a sensor sees that the rear of the bike is too low.
This turns on a compressor and adjusts the air in the bag to raise back to normal ride height.
If the passenger gets off, the rear of the bike raises, and the sensor see's it is too high, and releases a little air to bring the rear down to normal ride height.
While replacing my shocks, I completely removed the air bag / compressor assembly from my F3 LTD, as the new shock allows easy manual adjustment for adding weight or adjusting suspension preferences, with out the air bag assembly.