AI technology threatens to replace traditional retail price tags

Experts are warning that artificial intelligence could fundamentally change retail by replacing traditional fixed price tags with personalized, individualized pricing. This practice, often referred to as ‘surveillance pricing,’ allows retailers to use AI to analyze personal data, consumer behavior, and financial capacity to set different prices for different customers.

While dynamic pricing has long been used to adjust for supply, demand, and weather, the new model leverages consumer identity and location. This shift threatens the concept of uniform pricing that has been a retail standard since the 1860s. Consumer advocates, including Lindsay Owens of the Groundwork Collaborative, note that the ability to predict expenses is essential for those on limited budgets, and the disappearance of predictable price tags could disrupt market foundations.