Using algorithms to determine the maximum price a consumer will pay could be seen as the 21st century's version of relationship selling and bargaining, pre the fixed-pricing era of department stores. However, as technology moves closer to tracking a consumer's every move, while the consumer may sometimes get a bargain, it raises some ethical and moral questions of knowing too much about your customer. So while a retailer could benefit from getting a higher percentage of sales, on the flip side could consumers be discriminated against, either paying too much (as much as they are willing to), or being priced out for fear of brand reputation risk.
So as disruption provides retailers another opportunity, it will be something that needs to be implemented with caution.
Until now, those variations have been dictated by the laws of supply and demand: a price surge algorithm detects a spike in demand and ups the charge — following the fundamental logic of the market. But new developments in artificial intelligence are radically changing the relationship between retailers and customers. Besides supply and demand, what's also now becoming important is the maximum price you're willing to pay. And that calculation is made not by you, but by an algorithm. Welcome to the world of dynamic pricing.