ARTIFICIAL INTELLIGENCE AND ITS INFLUENCE ON BUSINESS PRICING AND MARKET DYNAMICS

This chapter focuses on the transformative impact of Artificial Intelligence (AI) on business
pricing strategies. It underscores the shift from traditional pricing methods to dynamic AI-driven
models, emphasizing the need for this transition due to the limitations of conventional tools. The article
highlights the benefits of AI in pricing, such as enhanced accuracy, demand forecasting, and
personalization. It also explores the evolution of pricing models from static and rule-based to AI-driven
intelligent systems and outlines a structured approach for implementing intelligent pricing.
Furthermore, it discusses the utilization of propensity models in pricing, AI's role in determining price
elasticity, and the challenges and ethical considerations of AI-driven pricing strategies. The article
concludes with an overview of the significant advantages of AI in pricing and its future potential in
transforming business strategies.