AI-driven pricing tools are reshaping costs at fast-food chains and retailers

Investigations show McDonald’s has run an AI pricing system since at least 2019, drawing on millions of sales to determine the most profitable price for each product at each location, with a local willingness-to-pay estimate as a key input. The approach, described by the company as a "tool, not a mandate," mirrors practices labeled "surveillance pricing" by the FTC, which monitors firms that tailor prices using personal data.

Walmart, Instacart, Uber and Lyft possess patents or testing methods that could adjust prices or coupons based on shopper behavior, though they publicly deny current use. Consumer Reports found significant price disparities in grocery and ride-hailing services, prompting the companies to attribute differences to market conditions. Academic research indicates personalized pricing can boost profits while lowering costs for many shoppers, but a 2024 Consumer Reports poll shows two-thirds of Americans oppose the practice. States such as Maryland and New York are moving to restrict or require disclosure of data-driven pricing, though enforcement remains challenging.