AI based pricing intelligence for pricing decision

Artificial Intelligence (AI) has entirely metamorphosed every aspect of modern living. AI has made its way into every nook and cranny of our environment, deeply embedding itself into every industry ranging from healthcare to retail. Long gone are the traditional practices of business and are completely replaced by modern technology which makes anything possible with just a click of a button.

Today’s competitive market requires less with more; it is a guiding principle which is followed by tons of resource-intensive industries. The expectations form AI no longer end with just intelligence, because that barely scratches the service. AI now has to ensure solutions to complex problems, schedule tasks in the most convenient way possible, effectively manage constraints and provide operational efficiency.

Machine Learning (ML) rests at the heart of Artificial Intelligence (AI). It is a technology that has the ability to learn everything on its own without necessitating any explicit programming. Its ability to build complex algorithms, which can easily learn about data patterns and adjust accordingly, possesses predictive capabilities. ML can be used to unravel insights with the help of historical data, increasing the possibility to make necessary changes to derive efficient outcomes

Strategic Pricing is an inescapable aspect of any business. Enterprises and organizations often struggle to determine a rational price that will help extract the maximum value for both the consumer and the industry. This is exactly where Machine Learning becomes operative, as it can scan a proliferation of data at record speed and provide fruitful business-guiding intelligence.

Machine Learning builds upon statistical models that provide accurate, rational pricing predictions and techniques to optimize them which are constantly updated based on various parameters such as market fluctuations, competitor’s pricing, consumer purchase history, to name a few, thereby completely evading the ever-elusive pricing problem and saving precious time simultaneously. Using AI and ML in Pricing Strategies are effectively improving an enterprise’s management capabilities in more ways than one:

• Increasing Financial Capital: AI and ML can easily determine certain pricing techniques that are unproductive, saving the company’s precious dollar and thereby providing more resources that can be productively invested elsewhere to generate more profits.
• Automation to Increase Revenue: Boston Consulting Group (BCG) in its report stated that using technologies such as AI and ML to automate prices can help in generating more revenue for the enterprise.
• Optimize Revenue from Client Base: Along with helping in expanding consumer base, AI and ML are also helping in forming strategies that can help extract maximum revenue from the existing client base of a company. The complex algorithms aid in identifying products and/or services that an already existing client of the company would likely be interested in purchasing based on the consumer’s behavior.

Artificial Intelligence and Machine Learning are game changing technologies which can provide intelligence which step beyond human intuition. It helps the growth of a business in an all-encompassing way