"The widespread implementation of AI technology promises to transform virtually every retail process, from back-office operations to the front end, and even the way consumers engage in the shopping journey. McKinsey predicts that generative AI alone could deliver between $240 billion to $390 billion in value to retailers. "This, combined with the value of nongenerative AI and analytics, could turn billions of dollars in value into trillions," it said."
"Surveillance pricing, sometimes called personalized pricing, is a practice in which a retailer uses personal data and algorithms to set individualized prices for the same product. In effect, merchandise that the retailer buys at a fixed wholesale cost is sold to customers at different prices based on their data profile. It's easy to see the murky legal waters retailers enter with surveillance pricing."
Widespread AI implementation is poised to transform virtually every retail process, from back-office operations to front-end customer interactions and the shopping journey. McKinsey predicts generative AI alone could deliver between $240 billion and $390 billion in value to retailers, and combined with nongenerative AI and analytics could expand that into trillions. AI enables personalized consumer interactions that can deepen engagement, loyalty and customer delight while acting as a power multiplier. Surveillance pricing uses personal data and algorithms to set individualized prices for the same product, creating legal risks around fairness, discrimination and privacy. State and federal regulators are increasingly scrutinizing surveillance pricing and consumer data practices.
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