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LATHICAI Glossary

Enterprise AI

Algorithmic pricing

Software setting or changing prices according to rules or predictions.

Example

A seller's system updates prices in response to demand signals.

Why people use it

It helps businesses update prices without manually changing every item.

What you'll hear

“The price changes as demand changes.”

What this means for you

Ask which information determines the price and whether personal data is involved.

Can you control it?

Sometimes

Sometimes. Your choices depend on the tool and your access. The settings available to an everyday user may differ from those available to the people running it.

Common questions

Is algorithmic pricing always personalized to an individual?
No. Prices can change using market-wide signals instead.
Can two shoppers see different prices?
They can, depending on the pricing approach, location, timing or information used.
Does an automatic price have to be fair or sensible?
No. Rules or predictions can produce prices that are mistaken, surprising or inappropriate.

Related terms

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