Artificial Intelligence and Pricing

Abstract

As businesses become more sophisticated and welcome new technologies, artificial intelligence (AI)-based methods are increasingly being used for firms' pricing decisions. In this review article, we provide a survey of research in the area of AI and pricing. On the upside, research has shown that algorithms allow companies to achieve unprecedented advantages, including real-time response to demand and supply shocks, personalized pricing, and demand learning. However, recent research has uncovered unforeseen downsides to algorithmic pricing that are important for managers and policy-makers to consider.

Citation

Aparicio, D. and Misra, K. (2023), "Artificial Intelligence and Pricing", Sudhir, K. and Toubia, O. (Ed.) Artificial Intelligence in Marketing (Review of Marketing Research, Vol. 20), Emerald Publishing Limited, Leeds, pp. 103-124. https://doi.org/10.1108/S1548-643520230000020005