TECHNOLOGY FOCUS HHooww AAII iiss TTrraannssffoorrminmingg PPrriicciningg SSoolluuttiioonnss inin RReettaailil By Abasto ngoing economic volatility and in昀氀ation amplify 10% of their products under any given category in any given retailers’ pressure to optimize pricing and selling period. maximize customer loyalty. A recent report from “吀栀e consumer is more price sensitive today than they have Coresight Research outlines the measurable been in years, which makes it critical for retailers to have the advantages for retailers of utilizing AI for pricing right insights at the right time to adjust pricing in real-time,” Osolutions and how the technology can bene昀椀t said Coresight Research CEO Deborah Weinswig. pricing overall. “What we learned from this survey is that while retailers use Historically, large teams have made incremental price AI pricing tools, most still have a long way to go to integrate adjustment decisions using spreadsheets, data sets, and pricing tools with other enterprise technologies and systems formulas. However, more retailers realize that AI pricing can to maximize its bene昀椀ts. 吀栀e retailers who integrate the fastest mean the di昀昀erence between millions in pro昀椀ts or losses. will be the companies that we see rising above economic-driven The Future of Pricing: How AI Is Transforming Price pricing challenges in the months ahead,” Weinswig added. Planning in Retail report explores the current level of AI (arti昀椀cial intelligence) usage in pricing strategies, and the INVESTING IN AI FOR PRICING SOLUTIONS obstacles retailers must overcome to maximize the returns of 吀栀e report emphasized that as competition intensi昀椀es AI pricing technology investments. among retailers due to higher customer acquisition costs, According to the survey, 92% of respondents are using AI retailers will have to di昀昀erentiate through continued investing pricing today, but integrating data across the enterprise for in technology infrastructure (including AI). the most accurate results remains a challenge. Coresight Research’s survey found that 97% of respondents Coresight Research’s analysis found that by using AI-based currently using an AI-based pricing solution plan will increase pricing solutions, retailers across di昀昀erent verticals can investments in this area over the coming 12 months. 吀栀is increase annual revenues by 10%, on average, and improve 昀椀nding reveals that retailers have yet to achieve optimal AI margins by as much as 5%. However, retailers need to integrate usage levels and strongly intend to upgrade their AI-based AI pricing with other systems better to maximize its potential. pricing solutions soon. Another recent Coresight Research survey found that more Continued investments will also catalyze retailers to move than half (52%) of retailers cannot execute at least 10% of up the pricing maturity curve in the coming years. their promotional campaigns properly and are mispricing “Recent advancements in machine learning have made sophisticated pricing technology accessible to retailers of Of the retailers cannot execute all sizes, empowering them to implement complex pricing at least 10% of their promotional strategies that deliver optimal prices quickly and e昀케ciently,” 52%campaigns properly said Alex Galkin, Founder and CEO of Competera. 2626 MMAAYY//JJUUNNE 2E 200224 4 AABBAASSTOTO..CCOOMM