Artificial Intelligence (AI)-Driven Pricing

What Is Artificial Intelligence (AI)-Driven Pricing?

In ecommerce, pricing can be challenging, and suboptimal product prices can leave money on the table for brands and retailers. Artificial intelligence (AI)-driven pricing can help solve this challenge.

In this process, a machine learning (ML) solution gathers market and customer data and combines those insights with predictive analyses to determine the best price possible for the product. In many cases, these artificial intelligence (AI)-driven pricing solutions will conduct this process in real time by using insights about market fluctuations to automatically adjust prices.

A ride-sharing app, for example, uses insights on driver availability and rider demand to increase or decrease ride costs accordingly. In this example, the artificial intelligence (AI)-driven pricing tool completes this analysis and adjusts costs automatically, saving the ride share app considerable time and money in the process.