Dynamic pricing: Retailers using artificial intelligence to predict top price you’ll pay – RN – ABC News (Australian Broadcasting Corporation)

Dynamic pricing: Retailers using artificial intelligence to predict top price you’ll pay

ANALYSIS

By Sven Brodmerkel for Future Tense

Posted Tue at 8:12am

person using smart phone in the darkPHOTO: Algorithms can use your data to determine how much you’re prepared to pay for items online. (unsplash.com: Gilles Lambert)

MAP: Australia

The price tag still holds sway in our major shops and departments stores — but the retail sector is moving away from fixed prices, and online businesses are leading the way.

Prices already fluctuate online for certain products and services like airline fares, hotel rooms and ride-sharing services like Uber. One day you score a great deal, the next you end up paying a bit more than you wanted.

Most people focus on the positive — the bargain they got. But what if such flexibility and uncertainty was a feature of all your shopping?

Until now, those variations have been dictated by the laws of supply and demand: a price surge algorithm detects a spike in demand and ups the charge — following the fundamental logic of the market.

But new developments in artificial intelligence are radically changing the relationship between retailers and customers

http://www.abc.net.au/news/2017-06-27/dynamic-pricing-retailers-using-artificial-intelligence/8638340

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