Artificial intelligence is making it easier than ever for retailers to change prices quickly.
But some shoppers worry AI technology could also make it harder to know whether they are getting a fair deal.
The practice, often called "dynamic pricing," allows businesses to adjust prices based on a variety of factors. Sometimes that works in shoppers’ favor, such as when a retailer marks down an item.
But other times, prices can go up.
A recent Wall Street Journal report highlighted growing consumer concerns that retailers could use artificial intelligence and digital pricing systems to raise prices more frequently.
Electronic shelf labels are also appearing in more stores, allowing retailers to update prices without employees manually replacing paper tags.
WATCH as shoppers express their concerns with dynamic pricing in stores:
Some shoppers say the changes leave them uneasy.
“I don’t see why it would help people at all. It just confuses people,” shopper Bill Brockman said.
Steven Booker expressed a similar concern.
“I don't like it, because it means they can switch it anytime,” Booker said.
Shopper Diane Rankin said she has another problem with some digital shelf labels: They can be difficult to read.
“Well, I actually have taken a picture on my phone and increased it so I can read,” Rankin said.
More retailers using AI to set and change prices
Data platform Decodo found Amazon had the most price adjustments among retailers it tracked, including both discounts and price increases.
“Amazon recorded over 116,000 price changes in our tracking period. That's 69% more than its nearest competitor,” said Gabrielė Vitkė, Decodo senior product marketing manager.
According to Decodo, Amazon was followed by:
- Walmart
- Kroger
- AliExpress
- Target
- Best Buy
The growing use of electronic shelf labels at brick-and-mortar stores has added to shoppers’ concerns because prices can now be changed much faster than with traditional paper labels.
Kroger and Walmart have maintained that they are not using their digital shelf-label technology to change prices based on an individual shopper’s purchase history, search history, or income, or to raise prices during periods of high demand, such as increasing the price of snow shovels ahead of a snowstorm.
Still, some consumers remain skeptical.
Digital labels can also make it difficult for shoppers to know what an item cost the previous day, because there may no longer be an old paper price tag to compare.
As retailers increasingly adopt AI and electronic shelf labels, consumer advocates say shoppers should continue comparing prices and paying attention to what they are charged at checkout.
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