Some AI tools unfairly impacting online prices, shows a CCI report: Can regulators rein in the algorithm?

 The CCI report observed that AI-driven price discovery is now being used as a strategic tool by some businesses to drive revenue optimization. However, these AI strategies introduce regulatory risks such as a lack of transparency. The report cautioned that AI could be used to implement predatory strategies by targeting below-cost pricing aimed at price-sensitive customers or those at risk of switching, while keeping prices unchanged for other consumers. “The rise of AI is reshaping industries and consumer behaviour, bringing both opportunities and regulatory challenges. The CCI’s AI market study is a crucial step, offering a roadmap to balance innovation with fair competition, and it expects businesses to embed transparency, accountability, and compliance into their AI strategies from the outset,” said Vaibhav Choukse, Partner, JSA. Read more