Why AI could end the price tag as we know it

Artificial intelligence may change how consumers encounter prices. Experts say retailers could use personal information to set different prices for different shoppers, weakening the familiar posted price.

This approach extends dynamic pricing, which already adjusts costs according to factors such as supply and demand. AI could add details from a shopper’s profile, making prices more individualized and less visible to customers.

Research by Groundwork and Consumer Reports found identical grocery items could cost some shoppers as much as 23% more. The groups estimated that the difference could reach about $1,200 annually for a family of four.

Instacart challenged the estimate, saying the cited annual gap relied on an unusual basket that maximized price differences. The company also said it does not use personal data, including protected traits, to determine prices.

Groundwork said a Walmart patent application describes adjusting prices based on what is in a customer’s cart. Walmart’s corporate affairs chief, Dan Bartlett, denied that the retailer sets individual prices using personal information or willingness to pay.

Consumer advocates warn shoppers may not know when personalized pricing is being used, while businesses may avoid disclosing it. The debate centers on whether consumers can trust prices and plan spending if costs vary by person.