Home Tech The importance of Artificial Intelligence and its relationship with prices

The importance of Artificial Intelligence and its relationship with prices

The artificial intelligence (IA) has made many changes in the lives of all people, and everything that surrounds us in general. We have gone from living in a real world, to living in a digital world where everything is done through a screen. If you want to talk to someone who is several kilometers from you, no problem, through a screen you can see each other, even meet people through applications. And, it is no longer just the fact of chatting with someone through a screen, it is that even all the operations that deal with money issues are also carried out through an application.

According to a study conducted for Revionics, a pricing technology company, in 2020, more than half of retailers jumped into the pool and proposed to carry out a kind of AI pricing technology. The goal of this is lower the price of products, which will capture the attention of consumers. Furthermore, this study shows that 90% of consumers planned to switch brands or seek lower prices.


What can artificial intelligence offer?

AI creates algorithms that detect patterns of consumer behavior. In addition, you can predict profitable prices to meet volume and sales targets.

Since its inception, retailers are seeing very effective results in several areas, such as match the price to the individual and tailor communications. In other words, when customers enter a store and just have the store application downloaded on their mobile device, the application itself will send them recommendations on what might interest them.

Another option is that retailers Through artificial intelligence they can know how customers would react if they modify something in the future, always based on past results. Several companies have carried out this tool, as is the case of Ralph lauren and Michael Kors, who used machine learning to sell certain garments at a reduced price, in order to make the most of their inventories.

AI can adjust price to inventory levels. An example of this is Walmart, which used real-time data to improve efficiency in the meat aisle. This represented a 30% increase in sales.

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