Instacart’s AI-powered pricing tool drew attention — now the FTC has questions

According to ReutersInstacart is currently receiving similar orders from the FTC, which has sent the grocery store to investigate public concerns about its valuable AI tool, Eversight. In other words, the agency wants to know why some people pay more for organic granola than others.

This issue came to light after a survey that showed that consumers see it fairly different prices on the same food from the same stores – up to 23% higher prices in some cases. Instacart says these price tests are random, unrelated to an algorithm that targets customers based on their browsing history. But when people are already worried about buying eggs, that difference probably doesn’t mean much.

Power plants are neither new nor ugly. Harvard Business School will tell you how digital platforms are competitive. Airlines use it, hotels use it, Uber famously uses it. Companies argue that it helps balance and demand, increases profits, and creates successful events.

But there’s a difference between paying high prices for a ride home from a bar and paying for groceries (food isn’t optional). So, even if the investigation doesn’t show any wrongdoing, it’s not surprising that the FTC – which conducted the investigation based on the data. pricing strategies and other companies – they say they are asking questions. In an economy where everyone is feeling the squeeze, an AI-driven pricing experiment on kitchen essentials was bound to attract attention.