BLUF
The article asserts McDonald’s US and some global markets use AI pricing tools to recommend menu prices based on local demand and customer willingness to pay. The outcome: price differences between stores and concerns over consumer fairness.Learning Outcomes
- Explain how artificial intelligence is being used in business pricing strategies, including how algorithms analyse customer demand, purchasing behaviour, and willingness to pay.
- Assess the benefits and challenges of AI-driven pricing systems, including their potential effects on profitability, consumer fairness, franchise operations, and pricing consistency.
- Evaluate the ethical and legal issues associated with algorithmic pricing, including concerns about transparency, competition, antitrust regulation, and the influence of corporations on franchise business decisions.
