How AI is Secretly Employed to Tailor Pricing and Maximize Profit

Money | July 9, 2024, 1:14 p.m.

In the era of algorithms, personalized pricing is on the rise in digital commerce, allowing businesses to exploit data to charge individual customers the exact price they're willing to pay. This practice not only injects bias and drives inflation but also creates a world where consumers are left in the dark about fair pricing. From Uber rides to Amazon purchases, businesses are using data to determine what each customer should pay, a practice that can lead to unsuspecting overpayments. This individualized pricing, driven by AI and neural networks, extends to every aspect of our lives, from streaming services to dating apps. Left unchecked, personalized pricing could disproportionately harm vulnerable populations, creating a regressive tax that penalizes those who can least afford it. The insidious nature of surveillance pricing highlights the urgent need for regulatory oversight and consumer protection laws to combat algorithmic discrimination and prevent further exploitation.