AI-Driven Dynamic Pricing and Consumer Fairness Perception in Emerging Markets

AI technology is changing the way businesses collect data, identify their customer base, andprice products and services. A key point of discussion is the use of AI in business for dynamicpricing. Dynamic pricing adjusts pricing for products based on demand, availability of customersand forecasting. Dynamic pricing can present positive and negative benefits regarding fairness,transparency and trust. These challenges may be more significant in developing economies,given the differences between developed and developing economies related to income inequality,digital literacy, and regulations. This research examines AI dynamic pricing and its impact onconsumer fairness in emerging markets and suggests that while AI-based dynamic pricing createsadditional efficiency for organizations, organizations may also create a perception of unfairnessthat undermines trust in the relationship.