October 13, 2026
CBS News recently published an article featuring Jay Zagorsky, Clinical Associate Professor of Markets, Public Policy, and Law, discussing how artificial intelligence could change retail pricing by enabling businesses to charge different consumers different prices for identical products.
The article explores how AI could build on traditional dynamic pricing by analyzing consumer data to estimate individual willingness to pay. It discusses concerns about fairness and affordability, including research into price differences on grocery-shopping platforms and debate over whether retailers could use personal data to tailor prices.
Zagorsky warns that businesses may be reluctant to disclose personalized pricing practices because of potential consumer backlash.
He explains, “Nothing positive is gained by a merchant stating they are doing this.”
The piece highlights the implications of AI-driven pricing for consumer trust, privacy, and transparency in retail markets.