AI Can Tell Companies What You’re Willing to Pay. Should They Use It?

Photo By: Vitaly Gariev For years, consumers have grown accustomed to algorithms deciding what they see. Netflix recommends what to watch. Retailers personalize product suggestions. Loyalty programs deliver different offers to different shoppers. Advertising platforms decide which promotion appears on which screen. But there is a potentially more consequential frontier for personalization: deciding what someone should pay. As artificial intelligence gives companies increasingly sophisticated ways to analyze purchasing behavior, businesses have more information with which to estimate willingness to pay. That capability is forcing some of America’s largest companies to establish boundaries around how pricing technology should be used. Walmart CEO John Furner recently made his company’s position unusually explicit.

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