Brief
AI could replace universal price tags, experts warn
Consumer‑protection leaders say AI‑driven pricing could end the century‑old practice of posting a single price for all shoppers.
By Felo News Desk · Published
Artificial intelligence is poised to transform retail pricing, according to consumer‑protection experts cited by CBS News. Lindsay Owens, chief executive of the Groundwork Collaborative, told the outlet that AI could allow retailers to charge each shopper a different price based on personal data, putting the traditional price tag at risk of extinction.
What happened
Owens explained that AI builds on dynamic pricing, which already adjusts prices for supply, demand, weather and time of day. The new approach would add personal factors such as a shopper’s location, purchase history and inferred willingness to pay. She compared the concept to Uber’s surge‑pricing model, but applied to everyday goods.
What the reports add
CBS News reported that analysts at Cornerstone Research, in a 2025 report, warned that AI could enable firms to collect and analyze vast consumer data sets, producing “more granular, dynamic, and individualized pricing than previously observed.” The outlet also noted a December trial by grocery‑shopping platform Instacart, in partnership with Groundwork Collaborative and Consumer Reports, that displayed different prices for the same items to different customers.
What was said
"The posted price has been paramount for consumers, and I do think the price tag is at risk of extinction," Owens told CBS News. She added, "Predictability is really essential if you're on a budget, and knowing how much something is going to cost from one week to the next is part of what the posted price offered." The Cornerstone Research analysts were quoted as saying, "These technologies may empower firms to collect, process and analyze vast amounts of consumer data, leading to more granular, dynamic, and individualized pricing than previously observed."
How it came about
The shift follows decades of dynamic‑pricing practices and recent advances in machine‑learning algorithms that can profile individual shoppers. Owens’ book, Gouged: The End of a Fair Price — and What That Means for Your Wallet, argues that the move toward personalized pricing could upend norms established in the 1860s when John Wanamaker introduced fixed prices in Philadelphia. The Instacart pilot, reported in December, illustrates how retailers are already testing AI‑driven price differentiation.
Key facts
- Lindsay Owens says AI could let retailers set personalized prices for each shopper. (cbsnews.com)
- Cornerstone Research warned in a 2025 report that AI may enable more granular, individualized pricing. (cbsnews.com)
- Instacart ran a December trial showing different prices for the same goods to different customers. (cbsnews.com)
Sources
- [1] cbsnews.com — originally reported as “Why AI could end the price tag as we know it”
