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AI Gains a Greater Role in Price Setting | NHK WORLD

Price setting is an essential part of business operations. More and more companies are relying on artificial intelligence to do the job. They use an AI-based dynamic-pricing strategy that helps them to know when to raise or lower a product’s price.
The approach is being adopted by Japanese companies, after spreading in other nations.

US ride-hailing company Uber follows AI suggestions to raise prices when there are many riders or fewer drivers in a set area. Four major professional sports associations in the United States, including the National Basketball Association and the National Football League, have also adopted a dynamic pricing approach for some of their games. They are letting AI decide ticket prices of games based on their popularity and other factors.

Dynamic pricing is also making its way into Japanese sports. During the last season, the pro baseball club Fukuoka SoftBank Hawks used AI to set ticket prices for some of its home games. The system predicted demand for each game based on data such as ticket sales over the 3 previous years and the standings of the Hawks and their opponents. Prices were adjusted according to the predictions. The system was put into place through joint efforts by the baseball club — which is looking to maximize profitability — and Yahoo Japan — which is exploring business possibilities of its pricing system.

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AI Gains a Greater Role in Price Setting – NHK NEWSLINE – News – NHK WORLD.