AI individual pricing? | Eight American companies use AI to track consumer behavior and set individual prices

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Mastercard Morgan Stanley included in the list EU, UK, and US sign statement to prevent AI exclusion strategy Support EJ Tech

originalPublished in Hong Kong Economic Times Financial NewsEJ Tech Innovation Lab“

Even for the same product or service, the prices may be very different for different consumers online, which may be related to personal data. The US Federal Trade Commission (FTC) on Tuesday (23rd)8 companies issued orderswhich means that they use artificial intelligence (AI) and algorithms to track consumer characteristics and behaviors, such as location, demographics, credit records, browsing or shopping history, and other information to set personalized prices for products.

The FTC accused eight companies of using AI to track consumer behavior and set personalized prices for goods. (Reuters file photo)

Mastercard Morgan Stanley included in the list

News website Quartzrefer toThe eight companies listed by the FTC include Mastercard, Revionics, Bloomreach, JPMorgan Chase, Task Software, PROS, Accenture and McKinsey, many of which provide trading, sales and pricing services to some of the largest companies in the United States and the world.

The eight companies listed by the regulator this time include MasterCard. (Reuters file photo)

Just like American software companiesTask softwarewhich is the transaction management company behind several fast food chains such as McDonald’s and Starbucks;Ruiwei ElectronicsIt provides retail price optimization software and pricing analysis to many global chain stores, including Home Depot;advantageIt is an American software company that calls itself an AI pricing solution provider. Its clients include Nestlé, HP and United Airlines. The company is also a technology development partner of Microsoft.

Generative artificial intelligence is developing rapidly, and global companies are stepping up investment to improve their competitiveness. The resulting risks may harm the public interest.European Commission,Competition and Markets Authority (CMA)the U.S. Department of Justice andFederal Trade CommissionRegulators, on TuesdaysignOneJoint Statementaims to unleash the opportunities provided by generative AI technology through fair and open competition; at the same time, it establishes common principles to maintain fair competition and protect consumers.

EU, UK, and US sign statement to prevent AI exclusion strategy

The joint statement mentioned that generative AI may be one of the most important technological developments in recent decades, and the public must be ensured to benefit from it. The statement listed a variety of competitive risks, saying that the development of the basic model of generative AI relies on dedicated chips, large amounts of computing power, large-scale data and professional technical knowledge. When key resources are concentrated and controlled, a few companies may dominate, limiting disruptive innovation and damaging fair competition.

The statement said that AI-related consumer risks, such as companies that deceptively or unfairly use customer data to train models, may undermine privacy, security and autonomy. Companies that use commercial customer data to train models have the opportunity to expose competitively sensitive information. The four regulators proposed several principles, mainly to promote fair competition in the AI industry, including encouraging fair trade, preventing exclusive strategies, and strictly reviewing investment partnerships between companies.