The use of Surveillance Price Algorithm in retail and travel industries is raising fears of unfair pricing as companies use AI to track customer data and set individual prices.
The Surveillance Price Algorithm is changing how prices are decided in markets worldwide. Companies are using artificial intelligence to collect user data such as browsing history device details and purchase habits to predict how much each person is willing to pay. This system allows retailers to adjust prices in real time often without the customer knowing.
In the United States lawmakers have started raising alarms after Delta Air Lines confirmed that a portion of its fare pricing is determined by artificial intelligence. Experts say the same pattern is now visible in online shopping platforms and ride sharing apps where price differences depend on a user’s personal data or location. Regulators believe this could lead to digital discrimination where each person pays a unique price based on what algorithms predict they can afford.
The Federal Trade Commission report found that retailers monitor how long users stay on pages what they click and even how they move their cursor to identify buying intent. These AI systems are able to find each person’s maximum payment point and adjust costs accordingly. Global regulators are now developing laws to restrict this form of algorithmic surveillance. Consumer groups are urging the public to protect personal data by using private browsers and limiting data sharing.
