"Unfortunately, now that AI is involved, the situation is getting trickier for channel partners and those they work with to navigate, creating new capabilities but also coming with an existing narrative of mistrust. Dynamic pricing is a normal business strategy, but what is needed is clarification between the definitions of ethical and unethical pricing strategies, such as the difference between dynamic pricing and fake discounts, among others."
"Many are asking themselves: Is it possible for organizations to earn profit from AI-driven dynamic pricing strategies while remaining ethical? To answer this question, we need to look at the intricacies of consumer data and predictive analytics. Defining 'dynamic pricing' Dynamic pricing is the strategy used to adjust prices according to external factors such as classic supply-demand fluctuations, special events, weather forecasts, or competitor actions."
Volatile Oasis concert ticket prices prompted a Competition and Markets Authority investigation into Ticketmaster's dynamic pricing practices. Dynamic pricing has long been used to adjust prices based on demand, events, weather, and competitor actions, but public sentiment has soured, associating it with surge pricing and unfair spikes. The introduction of AI enhances predictive capabilities and complexity, creating opportunities and fueling mistrust among channel partners. Ethical clarity is needed to distinguish legitimate dynamic pricing from deceptive tactics like fake discounts. Assessing AI-driven strategies requires careful examination of consumer data use and predictive analytics to balance profitability with fairness.
Read at ChannelPro
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