Price Regulation Strategies
AI can help businesses set prices for their products more competitively to intelligently increase their market share.
By reading data from the business’ earlier transactions and from the market information of product’s actual cost, promotional activities, and sales figures, AI can visualise the outcome of different pricing strategies to generate profits with a higher efficiency. Predictive analytics provides valuable information on demand, seasonal trends, characteristics, likely customer choices and the optimal release date of new models that influence the key price point decisions. As an example, eBay applies AI to stay flexible with their ability to adjust prices and promotions according to industry-wide and customer-specific information gathered on their platform.
AI and machine learning-based solutions help retail businesses accelerate growth. AI algorithms have proven to have the power to increase sales and effective customer engagement, giving the AI-enhanced businesses a competitive advantage over the rest of the market. For a customer, the AI revolution means a more pleasant, personalised shopping experience designed to minimise time spent shopping and maximise satisfaction with the product. Hopefully this revolution in the coming decades will give us an opportunity to shift focus from mundane day-to-day activities such as shopping, and free up our time to focus on the things that matter the most.