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Could AI be influencing grocery prices?

Research found that nearly three-quarters of customers received different prices for identical items when 400 shoppers purchased the same products on Instacart

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By: Matt Sczesny

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WEST PALM BEACH, Fla. — Artificial intelligence could be shaping the prices you pay for groceries, according to a new study that reveals significant price variations for identical items on grocery delivery platforms.

WPTV has tracked rising costs throughout the year as part of our ongoing coverage of daily spending impacts. A Consumer Reports investigation indicates that the price you pay for grocery delivery through Instacart may be different from what your neighbor pays for the same items.

WATCH BELOW: Could AI be influencing grocery prices?

Could AI be influencing grocery prices?

The findings are eye-opening: consumers ordering groceries online are being charged different prices for identical items at the same store on the same day. When WPTV asked shoppers in downtown West Palm Beach about their experiences, many expressed concerns about AI's growing influence on pricing.

"I kind of think artificial intelligence is taking over and it's like can affect the pricing," one shopper said.

Study reveals widespread price disparities

According to research conducted by Consumer Reports, the Groundwork Collaborative and More Perfect Union, nearly three-quarters of customers received different prices for identical items when 400 shoppers purchased the same products on Instacart.

"We would send shoppers in, and they would get a range like for Skippy peanut butter, some would get $2.99, some got $3.69, some got in between," said Justin Brookman from Consumer Reports.

The report found price differences as high as 23% for identical products. Researchers estimate these price fluctuations could cost a family of four as much as $1,200 annually.

Some shoppers have witnessed these disparities firsthand. One person who has driven for Instacart told WPTV that they have seen different prices for the same items.

Instacart responds to pricing concerns

In response to the findings, Instacart issued a statement explaining that retailers conduct tests to learn about consumer habits and pricing strategies. The company emphasized that "these tests are not dynamic pricing - prices never change in real-time, including in response to supply and demand. The tests are never based on personal or behavioral characteristics — they are completely randomized."

However, experts suggest this represents a broader trend in retail technology.

"I think this is really the tip of the iceberg what we are seeing with pricing technology techniques from these companies," said Elizabeth Pancotti from the Groundwork Collaborative.

Pancotti described the phenomenon as part of an AI transformation affecting the entire economy.

"This is really the AI transformation our economy another example of where we are able to use massive amounts of data, very fast high powered technology to maximize profits for companies," Pancotti said.

Consumer protection recommendations

As AI continues to influence various aspects of daily life, experts recommend consumers remain vigilant and compare prices across multiple platforms when possible. The rapid advancement of pricing technology highlights the importance of transparency in digital marketplaces.

The study underscores growing concerns about algorithmic pricing in the digital economy and its potential impact on household budgets across America.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.

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