AI pricing tools draw consumer and regulatory scrutiny

US retailers are adopting AI pricing software and digital shelf labels as consumers raise concerns about how prices are determined, according to The Associated Press. Algorithmic systems can analyze sales, demand and competitor prices, while personalized pricing can also use customer location, income and browsing data.

A 2025 survey of more than 2,200 business leaders found that 41% used AI to gather market information, including competitor prices. Another 28% used AI for price optimization as market conditions changed.

Digital shelf labels allow stores to update prices electronically, but their use does not necessarily mean prices vary by customer. Walmart says its labels do not adjust prices based on the weather, time of day or individual shopper.

Legislators in at least 30 states considered pricing bills in 2026, including measures covering algorithmic and personalized pricing. Maryland, New Jersey and Connecticut enacted restrictions on using personal data to determine prices. The FTC also proposed an enforcement policy warning that companies may violate consumer protection law if they do not disclose the use of personal data for individualized prices.