Pricing in the Age of AI (MIT Press)
Participate
Information Systems and Operations Management
Speaker: Maxime Cohen, from McGill University
Room Bernard Ramanantsoa
Abstract
How is AI transforming pricing decisions, and what opportunities, challenges, and risks does this transformation bring? This book traces the evolution of pricing from traditional approaches to today's AI-powered strategies, showing how big data, machine learning, and generative AI are reshaping the way organizations set prices. Pricing decisions can now be adjusted in real time, personalized to individual consumers, and optimized at an unprecedented scale. The book examines the behavioral principles underlying modern pricing, explores how AI enables managers to automate and enhance pricing decisions, and discusses the ethical, legal, and societal challenges raised by these innovations, including concerns about competition, consumer protection, and discrimination. Ultimately, the book argues that AI is not merely changing how prices are set—it is redefining the role of pricing itself, requiring organizations to balance profitability, fairness, and consumer trust.