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Walmart has announced that it will not use artificial intelligence or customers' personal data to set individual prices, as stated by CEO John Furner. The company will "price the product, not the person," even when shoppers use its AI assistant, Sparky. Walmart also confirmed that employees will continue to oversee pricing and that dynamic pricing based on individual customers will not be implemented.
Walmart is currently rolling out digital price tags nationwide, replacing traditional paper labels. This new technology will allow stores to update prices in minutes and assist employees in locating products that need restocking. As reported by Queen City News, Furner emphasized that "we don’t set different prices based on who you are or the time of day, and we won’t."
The introduction of digital shelf labels has sparked concerns about potential dynamic pricing, a practice where prices change based on market trends, demand, and competitor pricing. However, Walmart assures that these labels will not track customer data or adjust prices based on individual shopping history. According to Wisevoter, the company has secured patents for systems designed to forecast demand and automate markdown pricing, but maintains that prices will remain consistent for all customers.
Walmart's move to digital shelf labels reflects a broader trend in the retail industry towards digitizing inventory management to reduce labor costs. The company plans to complete the rollout of this technology by the end of the year, as noted by Tekedia. The transition aims to improve pricing accuracy and efficiency without introducing variable pricing.