How to Use Generative AI for Pricing
Abstract
Generative AI is transforming retail pricing decisions by providing an accessible and low-cost alternative to traditional pricing algorithms. Unlike traditional approaches, LLM-based pricing relies on natural language prompts, not custom code and historical data. However, LLM-based pricing introduces challenges around consistency, explainability, and potential biases. Implementation examples demonstrate how to prompt LLMs and use their recommendations to optimize product and service pricing.
Fields of Study & Subjects
Explainable Artificial Intelligence (XAI)
Stock Market Forecasting Methods
Artificial Intelligence in Healthcare and Education
Publication details
- Journal / source
- MIT Sloan Management Review
- Publisher
- MIT Sloan School of Management
- Volume
- 67
- Issue
- 3
- Publication date
- 29 January 2026
- Language
- EN