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Ai Pricing

All articles tagged with #ai pricing

business2 months ago•2 min saved

Instacart halts AI pricing tests amid FTC investigation

Instacart has ceased using AI to experiment with variable pricing for the same items after reports revealed customers were paying different prices for identical products, with some experiencing up to 23% higher costs. The company acknowledged the issue and stated that shoppers will now see consistent prices for the same items within the same store, although prices may still vary across different stores. The pricing experiments, part of a revenue-maximization strategy involving AI, were criticized for potentially costing consumers up to $1,200 annually, leading Instacart to halt the practice.

via Los Angeles Times|

#ai-pricing #business #consumer-report

business2 months ago•2 min saved

Instacart halts AI pricing tests amid FTC investigation

Instacart announced it will cease using its AI-powered pricing tool after investigations revealed retailers testing variable pricing on the platform, leading to concerns over transparency and prompting the company to end these tests amid regulatory scrutiny and customer feedback.

via CBS News|

#ai-pricing #business #consumer-protection

business6 months ago•8 min saved

AI and Personalized Pricing in the Travel Industry: Trends and Controversies

The travel industry is increasingly adopting AI for dynamic pricing and service enhancements, raising concerns about transparency, privacy, and fairness among consumers and regulators, as airlines like Delta, Marriott, and Hertz implement AI-driven systems for ticket pricing, upgrades, and damage assessments.

via The Washington Post|

#ai-pricing #business #consumer-concerns

business7 months ago•2 min saved

Delta Air Lines denies using AI for personalized fare pricing amid congressional concerns

Delta Air Lines has assured U.S. lawmakers that it will not use artificial intelligence to set personalized ticket prices based on individual personal data, despite plans to deploy AI-based revenue management technology across 20% of its domestic network. The airline emphasized that its pricing strategies do not target individual consumers with personalized prices, addressing concerns raised by senators and the public about potential fare increases based on personal information. Legislation has been proposed to ban airlines from using AI to set prices based on personal data, reflecting broader concerns about targeted pricing and consumer trust.

via CNBC|

#ai-pricing #business #consumer-trust

business7 months ago•1 min saved

Delta Denies Using AI for Personalized Flight Pricing

Delta Air Lines is clarifying that its AI-assisted dynamic pricing system does not target individual customers with personalized prices based on personal data, despite earlier comments suggesting such a capability. The airline states that the technology is used to analyze market trends and competitor pricing to optimize fares, and emphasizes its commitment to non-discriminatory practices. The company is also evaluating the technology and responding to regulatory concerns raised by lawmakers.

via The Verge|

#ai-pricing #business #delta-air-lines

politics7 months ago•1 min saved

Lawmakers Call for Ban on AI-Driven Price Gouging and Surveillance

Lawmakers are calling for a ban on Delta's use of AI for personalized pricing, citing concerns over surveillance-based price gouging by companies like Amazon and Kroger, which they argue exploit consumers and deepen inequality. The FTC's investigation into AI pricing services highlights the potential for widespread market disruption, prompting advocacy groups to support legislation to regulate or ban such practices.

via Ars Technica|

#ai-pricing #consumer-rights #delta-airlines