AI already knows your price

McDonald’s has rolled out a system that calculates how much people are willing to pay for a specific item.

It looks at millions of orders, competitors’ prices, and how customers respond to price increases. If people at one location are willing to pay more for a Big Mac without hesitation, the algorithm takes that into account.

A real-world example:
At two McDonald’s locations just 3 km apart, a Big Mac can cost $5.69 and $6.89. That’s a 21% difference.

Online retailers are already using the same approach: in the US, in 74% of cases, the same product is shown to different people at different prices.

AI takes into account purchase history, abandoned carts, time spent on a page, even mouse movements, and dozens of other factors.

According to research, personalized pricing is already generating 19% more profit for companies. So it looks like this is what sales will increasingly be built around.

More information about a person = more money.