August 1, 2025
KCBS Radio recently interviewed Jay Zagorsky, Clinical Associate Professor of Markets, Public Policy, and Law in a discussion on how businesses are adopting AI-driven customized pricing models.
Custom AI pricing means that customers may be charged different amounts for the same product. Factors such as device type, IP address, browsing history, and location can influence the price an AI system offers – often based on patterns in a shopper’s online behavior. To avoid leaving a digital trail, Zagorsky recommends paying with cash when possible, referencing his book, The Power of Cash: Why Using Paper Money is Good for You and Society.
“The downside of this FinTech movement is it creates a huge amount of data on your shopping habits. If you happen to use paper money, you happen to use cash, you’re not providing any AI model with data on your spending,” he adds.
For online shoppers, he suggests practical steps: use a VPN to mask your location, clear your browser cache, switch to private browsing, and resist the urge to click “buy” immediately after adding an item to your cart.
