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The US economic policy research institute Groundwork Collaborative warns that AI is enabling retailers to implement differentiated pricing based on consumers' personal data and payment intentions, which may change the unified pricing model that has continued for more than a century. A previous survey between the agency and “Consumer Report” found that the fresh food delivery platform Instacart used AI pricing technology to show different prices to different consumers in the same store, resulting in a difference of up to 23% in the total price of the same basket of products. The research agency estimates that this may make a family of four spend about $1,200 different on groceries throughout the year. Following the controversy, InstaCart announced in December last year that it would stop allowing retailers to use AI to price the same products differently. Additionally, Groundwork Collaborative recently stated that Walmart has applied for multiple patents involving consumer portraits and personalized pricing, but Walmart denies developing or using tools to set exclusive prices based on personal income, shopping history, and payment intentions.
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Groundwork Collaborative, an American economic policy research agency, warns that AI is enabling retailers to implement differentiated pricing based on consumers' personal data and payment intentions, which may change the unified pricing model that has continued for more than a century. A previous survey between the agency and “Consumer Report” found that the fresh food delivery platform Instacart used AI pricing technology to show different prices to different consumers in the same store, resulting in a difference of up to 23% in the total price of the same basket of products. The research agency estimates that this may make a family of four spend about $1,200 different on groceries throughout the year. Following the controversy, InstaCart announced in December last year that it would stop allowing retailers to use AI to price the same products differently. Additionally, Groundwork Collaborative recently stated that Walmart has applied for multiple patents involving consumer portraits and personalized pricing, but Walmart denies developing or using tools to set exclusive prices based on personal income, shopping history, and payment intentions.
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