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Pricing in the Age of AI

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Pricing in the Age of AI

MIT Press,

15 دقيقة قراءة
9 الوجبات السريعة
الصوت والنص

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AI is transforming modern pricing, so learn to use it effectively and ethically.

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8

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AI is transforming pricing, enabling hyperpersonalization, real-time price differentiation, and data-informed strategies. However, it is also raising questions of privacy, bias, transparency, and fairness. Maxime C. Cohen, a professor of retail and operations management at McGill University, offers a comprehensive guide to help executives apply AI, machine learning, and customer data to pricing without alienating customers or running afoul of ethical or legal standards. Cohen provides a useful foundation for pursuing AI’s commercial advantages while protecting customer relationships.

Summary

Pricing strategy decides what customers pay for, how much they pay, and when prices change.

Businesses set prices based on data, experience, and intuition. Pricing is as much an art as it is a science, because pricing decisions can involve numerous complex considerations — for instance, which benefits or services to include in an offering, whether to offer a promotional discounted price, whether prices should vary across time, and whether to offer different pricing to different customers. Pricing decisions should also consider the company’s objectives: Lower prices can fuel growth and help build market share; higher prices can support short-term profitability or position the brand as a premium offering.

AI is reshaping pricing decisions in two ways: First, companies are using machine learning to analyze transaction data, customer behavior, and market signals, helping them identify more profitable pricing strategies. Second, AI democratized access to pricing tools. Organizations of all sizes are consulting newly available generative AI tools — such as Claude, ChatGPT, and Gemini — to assist with pricing decisions, although many questions about generative AI’s accuracy...

About the Author

Maxime C. Cohen is Scale AI Chair Professor and academic director of the Bensadoun School of Retail Management at McGill University. He’s also Chief AI Scientist for the CIUSSS West-Central Montreal (Jewish General Hospital) and scientific director of the nonprofit MyOpenCourt.org. His books include AI in Supply Chains: Perspectives from Global Thought Leaders and Precision Retailing: Driving Results with Behavioral Insights and Data Analytics.

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