Whether they know it or not, consumers are increasingly paying for goods and services priced by algorithms, data, and artificial intelligence.
But can we trust AI to establish fair pricing, especially when critics warn of “surveillance pricing” and algorithmic systems that can be applied to maximize profits through dynamic, personalized prices?
In this episode of CRA Sessions: AI in Practice, host and Competition Vice President Keler Marku speaks with Maxime Cohen, a CRA academic affiliate, McGill University professor, and author of Pricing in the Age of AI, to explore how AI is transforming pricing strategies and what that means for businesses, regulators, and consumers.
Together, Keler and Professor Cohen unpack the evolution of pricing processes, and the concept of surveillance pricing, a term often used to describe pricing systems that rely on consumer data. While public discourse focuses on the risks of these practices, Professor Cohen argues that the implications are more complex. The impact depends not only on the data collected, but also on how that information is used. In many cases, data can be used to improve market access and support fairer outcomes.
A key theme throughout the discussion is that fairness itself is not a single, universally accepted concept. Drawing from his research, Professor Cohen outlines multiple frameworks for evaluating fairness, including equal prices, equal access to products and services, and equal levels of consumer benefit. Achieving one form of fairness can make another impossible to attain, creating difficult trade-offs for businesses and policymakers.
Listen to the full episode to explore how AI is reshaping pricing, and what organizations should consider as personalized pricing becomes increasingly commonplace.
About CRA Sessions: AI in Practice
CRA Sessions: AI in Practice is a podcast series that examines the legal, economic, regulatory, and technical issues emerging from the rapid adoption of artificial intelligence.
Through conversations with CRA experts and leading academics, the series helps counsel, business leaders, and policymakers better understand how AI is reshaping markets, institutions, and strategy.
Disclaimer
The views expressed in this podcast are the views and opinions of the authors and do not reflect or represent the views of Charles River Associates or any of the organizations with which the authors may be affiliated. Detailed information about Charles River Associates, a trade name of CRA International, Inc., is available at www.crai.com.
