Walmart's CEO, John Furner, has said the company will not use **artificial intelligence** to set prices based on customer profiles or outside factors like weather, as reported by the Financial Times. This decision comes amid growing concerns about the use of AI and data analysis in retail to potentially charge different prices to different customers, a practice known as **price discrimination**. In a rare public letter, Furner emphasized that Walmart will not adjust prices based on a customer's identity, the time of day, or other factors like income, purchase history, or perceived urgency. The company also clarified that its new electronic price labels, being introduced in all 4,600 of its stores, do not use cameras, microphones, or **facial recognition** technology and show the same price to all customers.
Walmart has previously applied for two patents related to **machine learning** and automated pricing systems, including a tool designed to predict demand and suggest prices based on customer identification data such as passport or driver's license numbers. However, the company has decided not to use these technologies in its current pricing strategy. This decision was made around the same time the public comment period for a new proposed rule by the U.S. Federal Trade Commission (FTC) ended. The FTC warned that companies could be breaking the law if they did not clearly inform customers about using personal data to set prices.
Concerns about **dynamic pricing**, where prices change in real time based on various factors, have drawn attention from lawmakers across the political spectrum. In August, Republican Senator Josh Hawley criticized the potential for AI-driven pricing to "squeeze every dollar consumers have to buy products they need and depend on." Meanwhile, Frank Pallone, the top Democrat on the House Energy and Commerce Committee, sent letters to 25 companies, including Walmart, asking for more information about their pricing practices.
Retailers, including Walmart, argue that electronic price labels are more efficient and cost-effective than traditional paper labels. However, the rollout of these labels has faced pushback from some groups, including unions representing grocery workers. Walmart has reiterated that the labels do not include any technology that could be used to track customers or change prices based on personal data.
Walmart CEO Vows Not to Use AI for Dynamic Pricing Amid Regulatory Scrutiny
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