US consumers wary of AI-assisted pricing by retailers

Summarised from 2 outlets · Updated 18 Oct, 08:31 · Archive

US consumers are anxious about restaurant chains and retailers using artificial intelligence to set prices dynamically.

US consumers are angry and confused about how restaurant chains and major retailers increasingly use artificial intelligence to set prices. Digital price tags are replacing paper ones in grocery aisles, and AI tools help businesses predict how customers might respond to charges.

Terms like 'dynamic pricing' and 'surveillance pricing' are fuelling anxiety on social media, with people wondering if different shoppers receive different prices for the same product. Consumers have accepted changing prices for flights, hotels and rides, but worry that everyday shopping will be shaped by algorithms they do not understand and personal data they may not realise they are sharing.

Companies say concerns stem from misconceptions about how their pricing tools work. Walmart CEO John Furner said digital price tags save workers' time and keep prices current, adding that the labels are not used to raise prices based on weather, time of day or individual shoppers. 'We price the product, not the person,' he wrote. However, companies are not always transparent about customer data collection and use, making consumers suspicious. Social media posts falsely claim that electronic shelf labels Walmart plans to install in all US stores scan shoppers' faces or mobile phones to set individualized prices.

Lawmakers and regulators are taking action.

How it is being reported

• Consumer apprehension grows as US retailers adopt AI-assisted pricing toolsU.S. consumers are uneasy about the increasingly high-tech ways that restaurant chains and major retailers are setting prices.Clickorlando · 18 Oct, 08:07
• Consumer apprehension grows as US retailers adopt AI-assisted pricing toolsU.S. consumers are uneasy about the increasingly high-tech ways that restaurant chains and major retailers are setting prices.News4Jax · 18 Oct, 08:07

In this story: Walmart · John Furner · Katie Thomas · Kearney · United States

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem