What If AI knew exactly how much you would pay? đ”
If you have noticed that your flight price has increased during the peak holiday season or that your burger at McDonaldâs costs more during lunchtime, then you are familiar with dynamic pricing.
While this practice typically relies on demand, location, and timing, a new form of AI-powered pricing could be emerging, taking it to a more personalized level.
Picture this: you are browsing shoes on a website you have previously made purchases on. You interact with its AI shopping agent and share your location. By combining this information with the retailerâs data such as website traffic and competitorsâ prices, do you think the retailerâs AI knows you well enough to predict the maximum price you would be willing to pay?
Marketers, this could create new opportunities for personalized pricing, going beyond traditional customer segmentation. While this could help brands better understand consumers, beware: it could raise important concerns about fairness and data privacy. Brands would need to carefully evaluate whether this practice is a good fit for their customers, and full transparency throughout its implementation would be key.
Would you welcome a personalized discount determined by AI?
