Kroger’s AI-Driven Dynamic Pricing Overview

Kroger is implementing AI-driven dynamic pricing. You walk into a Kroger grocery store, go to an aisle with a product you buy often, cameras detect your face and raise prices. Scary? Yes. True? Yes. I am sharing quotes from https://www.perplexity.ai/page/kroeger-s-new-dynamic-ai-prici-yYXqe_z4SkOZq62JYBnVUQ.

Kroger’s AI-driven dynamic pricing raises prices for loyal customers.

“The system, which allows for real-time price adjustments based on factors such as demand and customer data, has been presented by Kroger as a way to enhance the customer experience…” Kroger argues, or wants us to believe, detecting when we are about to buy something we buy often and then adjusting the price according, is good for us. I call BS on that. This article further reports: “Moreover, the Enhanced Display for Grocery Environment (EDGE) system allows Kroger to build detailed customer profiles, potentially determining an individual’s maximum willingness to pay for products..” The italics are mine. Imagine being a regular buyer of Bud Light. You visit a Kroger on Friday night and go to the cold beer aisle. Kroger’s cameras detect you.

What AI Records

Kroger’s AI-driven dynamic pricing records:

• It is Friday night.
• You are a 30-year old male.
• You have bought Bud Light several times in the past six months.

What do you suppose Kroger’s dynamic pricing strategy will do to the price? Kroger will raise the price, I bet. This enables corporate greed. This tech is detecting loyal customers and increasing prices. All other factors being equal, loyal customers pay more without questioning price.

What Else They Can Do

On the flip side, Kroger argues their AI-driven Dynamic Pricing enhances the customer experience. They can send you coupons to buy more Bud Light, or Bud Light’s competitors. They also sell your demographic information to marketers who send or text you targeted ads. Most scary…if you crash your car, police can subpoena Kroger’s AI to determine when the last time was that you bought alcohol, how often you buy alcohol and how much. Big brother Kroger is watching.

More

AI ain’t so tough. See https://cybersafetynet.net/category/ai/ to help understand and use Artificial intelligence.