How AI and dynamic pricing may change the price of your groceries
Retailers and fast-food chains are increasingly adopting AI-driven tools and electronic shelf labels, raising concerns about the potential for dynamic, personalized pricing. Experts warn that these technologies could lead to rapid price fluctuations based on consumer demand.
Why it matters
Addresses the intersection of consumer rights, corporate technology, and the potential for algorithmic price discrimination.
Fast-food giants and supermarkets are rolling out a range of AI tools that could affect the prices shoppers pay, but experts warn the spread of data-driven tools could make personalized pricing easier to deploy.
Just this week, a federal antitrust lawsuit filed against McDonald's alleged the fast food giant uses an AI-powered "pricing engine" to set menu prices across U.S. locations and overcharge customers for Big Macs and fries.
McDonald's has denied that it's using AI to determine what individual customers are willing to pay and said it provides its franchisees with "tools, resources, research and recommendations to help them make informed decisions."
Even so, food businesses globally are increasingly digitizing operations with AI. Earlier this year, American grocery chain Kroger said it's using an AI platform called FlashFood to mark down perishables nearing the end of their shelf life and marketing them to shoppers via an app.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in