Business · Companies · 1 day ago

AI pricing tools could bring faster and more personalized food prices

AI pricing tools could bring faster and more personalized food prices

Food retailers are adopting AI and digital tools that can affect how prices are set and displayed.

The changes involve companies including McDonald's and grocery chains in the United States and United Kingdom.

A federal antitrust lawsuit alleges McDonald's uses an AI pricing engine to set menu prices, but the company denies using AI to determine what individual customers will pay.

Grocery stores are also using tools such as electronic shelf labels and apps that discount food nearing its sell-by date.

Experts say these technologies could make it easier to change prices quickly or tailor them to what a shopper may be willing to pay.

That could make prices less predictable for consumers and make it harder to measure inflation using a representative set of prices.

The sources do not say whether retailers will adopt personalized pricing or what specific price changes shoppers will see next.

What people are saying

Dynamic pricing means changing prices in response to changing market conditions, such as demand, timing, capacity or competitors' prices.
Miroslava MarinovaSenior lecturer of commercial law at the University of East Londonvia CNBC
It is not new. Airlines, hotels, and ride-hailing services have used it for years.
Miroslava MarinovaSenior lecturer of commercial law at the University of East Londonvia CNBC
as close to the maximum price a consumer is willing to pay for a good or service
Clare Lombardelli and Rupal PatelBank of England economistsvia CNBC

Sources

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