From PC Mag: Instacart has ended its AI-powered pricing tests following backlash after a study reported customers were shown different prices for the same items from the same store.
"Effective immediately, Instacart is ending all item price tests on our platform. Retailers will no longer be able to use Eversight technology to run item price tests on Instacart," the company said in a blog post.
The study, conducted by Consumer Reports, Groundwork Collaborative, and More Perfect Union, involved 437 volunteers in live tests across four cities.
Those involved were instructed to add the same items to their cart, and around 74% of them saw varying prices. The average difference between the highest and lowest prices for an item was 13%. Over the course of a year, this could force an average American family of four to shell out an extra $1,200, the study found.
Instacart said it was running these experiments in partnership with retailers to help understand how sensitive customers are to prices of certain items. It clarified that this wasn't dynamic pricing, but randomized A/B testing with retailers setting their own prices. The grocer also denied the study's claim about families needing to pay an extra $1,200 each year.
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