AI could change how much shoppers pay for groceries

Earlier this month, a federal antitrust lawsuit accused McDonald’s of using an AI-driven pricing system to determine menu prices across its U.S. restaurants, allegedly leading customers to pay more for items such as Big Macs and fries.

McDonald’s rejected claims that it uses AI to calculate how much individual customers are willing to pay, saying it instead provides franchisees with research, recommendations and tools to support their pricing decisions.

As AI becomes more widely integrated into retail operations, experts say it could accelerate the adoption of dynamic pricing, allowing businesses to adjust prices more frequently in response to changing market conditions.

"Dynamic pricing means changing prices in response to changing market conditions, such as demand, timing, capacity or competitors’ prices," Miroslava Marinova, a senior lecturer in commercial law at the University of East London, told CNBC. She noted that the practice has long been used by airlines, hotels and ride-hailing companies.

AI can influence the pricing of groceries. Illustration from Unsplash

In April, Bank of England economists Clare Lombardelli and Rupal Patel warned that advances in technology could enable businesses to change prices more frequently and tailor them more closely to individual consumers.

This could allow companies to charge prices approaching the maximum each customer is willing to pay. However, Marinova emphasized that dynamic and personalized pricing are not necessarily harmful to consumers. Such systems can also offer discounts to certain shoppers, making products and services more affordable.

Retailers adopting digital pricing technology have also sought to address concerns about potential misuse.

Walmart CEO John Furner said in a blog post last month that electronic shelf labels help employees save time and ensure prices remain accurate and up to date.

He stressed that the technology is not designed to increase prices based on factors such as weather conditions, time of day or individual customers.

"We price the product, not the person," Furner wrote, according to Fortune.