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How AI-pricing could harm retailers

in Business
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Is the age of “surveillance pricing” upon us?

Most Americans hope not, according to new research.

The concept of retailers potentially using AI to set individual pricing for products based on a user’s data or purchasing history has naturally prompted concerns over privacy and fairness.

Six in 10 (62%) Americans polled by Talker Research said they are either somewhat (33%) or very concerned (29%) about the prospect of having personalized pricing based on factors like their browsing habits, location or other data points.

62% of Americans polled said they are either somewhat (33%) or very concerned (29%) about “personalized pricing” based on their browsing habits, location or other data points. Konstantin Yuganov – stock.adobe.com

Just 10% of the 2,000 people studied said they were unconcerned about the prospect that this may one day come into practice.

California’s attorney general is currently examining how businesses use data to individualize prices, while New York officials enacted a law last year requiring retailers to have a clear disclaimer if setting prices based on personal data, Forbes reports.

The implications of introducing pricing models in this way may have very real implications.

Two-thirds said they would stop shopping at a particular retailer using the model. SWNS

If they discovered they were charged more for a product or service than someone else as a result of their personal data or purchase history being considered, two-thirds (66%) of Americans would stop shopping at that particular retailer, according to results.

One in six (17%) said they would continue to shop regardless and the same number (17%) were unsure as to how they’d react should they be charged more for something based on their personal information.

Is there an argument that such models could actually be more fair for consumers?

Overall, respondents were more inclined to suggest personalized pricing (or algorithmic pricing) as less fair (37%) overall than fixed pricing.

However, results were not unanimous, with 30% feeling it could actually be more fair and 33% feeling it’s about the same fairness either way.

Perhaps tellingly, it seems choice is key to Americans in the matter of personalized pricing.

Close to half (48%) said they’d be more likely to shop at a retailer that allowed them to opt out of data-based pricing, even if it meant missing out on personalized discounts and deals.

According to Forbes, New York officials enacted a law last year requiring retailers to make a clear disclaimer if prices come from personal data. BillionPhotos.com – stock.adobe.com

Many are not interested either way, with 42% saying the ability to opt out makes no difference, while just 10 percent say the ability to opt out of personal pricing would make them less likely to buy from the retailer.

How concerned or unconcerned are you about online retailers using your personal data (purchase history, browsing, location, etc.) to set different prices for different shoppers?

Very concerned – 29%

Somewhat concerned – 33%

Neither concerned or unconcerned – 28%

Somewhat unconcerned – 6%

Very uncensored – 4%

Research methodology:

Talker Research surveyed 2,000 Americans. The survey was administered and conducted online by Talker Research between December 5th and December 10th, 2025. A link to the questionnaire can be found here.

[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]

Tags: artificial intelligenceBusinesscustomerretailretailersTech
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