Algorithmic pricing technology powered by artificial intelligence and machine learning

Abstract

In light of the developments in information and communications technology and the Internet, artificial intelligence and machine learning are one of the most important characteristics of the digital economy in this rapidly changing and evolving smart era, and it is expanding and growing irreversibly. In a related context, the merger between marketing and pricing sciences on the one hand, and computer sciences on the other hand, has resulted in many value-added discoveries. The technical and computer influence in the field of pricing policies is clear, as modern marketing management is keen in light of the outcomes of the electronic economy and the environment. Cyber technology and market trends lead to harnessing the capabilities of artificial intelligence, machine learning, and predictive analysis of big data, in order to make the most appropriate price decision and improve the optimal pricing strategy, as this resulted in the birth of a new philosophy in pricing, called the term: algorithmic pricing, which is the practice of determining the required and desired price. In a dynamic, automatic and personalized way.