Artificial Intelligence Could End the Fixed-Price Era in Retail
Experts state that artificial intelligence technology could eliminate fixed-price norms by enabling retailers to implement variable pricing based on individual data.
With the development of artificial intelligence technology, it is stated that personalized pricing practices may become widespread in the retail sector, fundamentally changing the fixed-price approach that has existed since the 1860s.
The Fixed-Price Tradition is Endangered
Fixed-price tags, which have long been a common measure of value for consumers, are at risk due to new developments based on artificial intelligence.
Lindsay Owens, CEO of Groundwork Collaborative, emphasizes that artificial intelligence threatens to upend universal prices for consumers.
Personalized Pricing Tests
Retailers, moving beyond current dynamic pricing models, are conducting tests to offer special prices based on personal data and the region where people live.
Groundwork Collaborative and Consumer Reports previously shared findings regarding the Instacart platform displaying different prices for the same products.
Companies' Approach to the Issue
Following the findings, Instacart denied the allegations but announced it would halt the use of artificial intelligence on the platform that allows retailers to apply different prices.
Additionally, while customer profiling technologies were included in Walmart patent applications, the company denied developing tools that use personal data.