Dynamic pricing is not new, but according to a CNBC report, AI tools such as electronic shelf labels and facial recognition checkout are sharply increasing the amount of consumer information retailers can gather. That includes transaction histories, browsing behaviour, location, and purchasing patterns. The report quotes economist Marinova saying the traditional distinction between dynamic and personalised pricing is becoming less clear in practice.
Dynamic pricing typically responds to market conditions, while personalised pricing uses information about a specific consumer to estimate willingness to pay. As retailers combine both approaches, the boundary thins. The report also highlights Sainsbury's release of "SmartLists," an AI feature that helps customers build shopping lists by uploading photos or typing meal ideas, as an example of AI entering the customer-facing shopping experience.
Major retailers have pushed back against the idea that they are setting individual prices. Walmart and Kroger have publicly insisted they do not use dynamic or surge pricing for customers, saying their tools streamline operations instead. Still, several U.S. states are acting: New York requires businesses using personal data to set prices to disclose it, Maryland restricts food retailers from charging higher personalised prices, and New Jersey and Connecticut have targeted "surveillance pricing." The report does not resolve whether shoppers should expect more varied prices, but it makes clear the regulatory and consumer pressure is growing.