How Online Stores Use AI and Your Personal Data to Change Prices

Modern e-commerce has shifted away from uniform costs toward surveillance pricing, a method where artificial intelligence analyzes intimate consumer data to set individual rates. By tracking browsing history, physical location, and even real-time behaviors like mouse movements, retailers can predict exactly how much a specific shopper is willing to spend. This technology allows companies to maximize their profit margins by adjusting prices millions of times a day based on supply and demand. While these algorithms offer businesses increased economic efficiency, they also trigger significant concerns regarding consumer privacy and ethical fairness. Because these "black box" systems create an information imbalance, shoppers are encouraged to use tools like private browsing and VPNs to protect themselves. Ultimately, as retail becomes more automated, the industry faces a growing tension between technological innovation and the need for stricter regulatory oversight.