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AI pricing on Instacart leads to cost variations for users: study

A new study found that Instacart’s use of AI-powered pricing tools led to many US shoppers paying different prices for the same grocery items from the same store.

The research, conducted by Groundwork Collaborative, Consumer Reports, and More Perfect Union, tested 437 shoppers in four cities who added identical products to their carts through Instacart at stores such as Target, Costco, Albertsons, Kroger, and Safeway.

Nearly 75% of the items were offered at varying prices, with one example showing a dozen eggs listed at five different prices at a single Safeway in Washington.

The total cost for identical baskets at the same store fluctuated by about 7%.

Instacart said a small subset of retail partners run limited online pricing tests, and that retailers control their prices on the platform.

These tests do not use individual customer data, and prices do not change in real time.

The findings come as regulators and lawmakers increase scrutiny of AI-driven pricing practices in the US.

🔗 Source: CNBC

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