This chapter explores Starbucks' use of AI, specifically the Deep Brew system, to tailor individual pricing strategies based on customer behavior. It addresses the transparency issues surrounding these algorithms and compares similar practices in China, raising ethical questions about personalized pricing in the age of big data.
The US antitrust and consumer protection watchdog has recently launched a probe into what it calls "surveillance pricing." More specifically, they seek information on the use of artificial intelligence in setting different prices to the same product for different consumers. Is it similar to what Chinese people had experienced and what Chinese legislators have tried to combat? On the show: Laiming, Li Yi & Steve Hatherly