Kroger Explores AI Driven Income Based Pricing
Two U.S. senators, Elizabeth Warren and Bob Casey, have raised concerns about Kroger’s use of an AI-driven dynamic pricing model, which they believe could exploit consumer data and increase inequality. They criticized Kroger’s partnership with IntelligenceNode and Microsoft, which allows the grocery chain to adjust prices based on factors such as time of day, demand, and potentially personal data like income and shopping habits.
The senators expressed worries about privacy violations and the possibility of increased costs for consumers, particularly as Kroger expands its dynamic pricing to more stores. They also highlighted broader issues with grocery pricing strategies, including “shrinkflation” and “greedflation,” and criticized Kroger’s pursuit of profit at the expense of struggling families.