A partnership with Ermes and IBM is using artificial intelligence to automate product pricing. The Ermes Group (the largest retailer in Cyprus) is using IBM Watson technology to determine the lowest prices that still maintaining a profit margin. This not only helps retailers and companies, but also engages customers with sales.
Instead of having to calculate the cost of every item and store manually, Ermes can now use Watson to figure out product pricing. This will help move stagnant sales and also when and what to lower in price while still cutting enough of a profit for individual products. IBM suggests prices with a schedule as well, recommending a timeline for when to discount different items.
Automated Product Pricing
This Cyprus Retailer Uses IBM Watson to Determine Optimal Sales Prices
Trend Themes
1. Automated Pricing - Increasing application of AI in automating product pricing to optimize sales and profit margins.
2. AI-powered Sales Strategy - Adoption of AI-powered sales strategy for enhanced customer engagement and maximum profitability.
3. Dynamic Pricing - Growing reliance on dynamic pricing approach to offer competitive prices and promote sales growth.
Industry Implications
1. Retail - AI-assisted pricing techniques could disrupt traditional pricing models and enhance profitability for retailers.
2. E-commerce - AI-powered sales strategies could prove beneficial for e-commerce businesses by predicting customer behavior and personalized marketing.
3. Technology - The increased application of AI in sales and pricing strategy presents disruptive innovation opportunities for the technology industry.