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.
Maxime Cohen (Thu,) studied this question.