Will AI Pricing Lose Customers? What Business Leaders Need to Watch
Artificial intelligence is transforming how companies set prices. From airlines to SaaS firms, more organizations are leaning on real-time algorithms to improve margin growth and operational efficiency. But as AI pricing becomes more common, I believe there’s a bigger question we need to ask: Could it cost us our customers?
This was the focus of a recent article I wrote for Forbes, where I examined both the opportunity and the risk behind AI-driven pricing. The real threat isn’t the technology itself. It’s losing sight of the people we’re building it for.
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AI Pricing Is Powerful, but Not Always Perceived as Fair
AI pricing engines are designed to move fast. They analyze demand patterns, competitor movements, customer behavior, and even broader market signals to recommend real-time price changes. When done well, this leads to stronger pricing decisions and healthier margins.
But customers don’t always see it that way.
Take the Delta Airlines example. When news broke that they were expanding AI-based pricing models, the public reaction was swift and skeptical. Even though the airline clarified that personal data wasn’t being used to set prices, the damage to trust had already begun. It raised an important point: perception matters just as much as policy.
As AI adoption grows, so does the risk of losing the trust that pricing decisions once relied on.
Transparency Isn’t Optional
In my view, transparency is the foundation of any successful AI pricing strategy. When customers understand why prices change and how those changes deliver value, they are far more likely to accept them.
Too often, companies implement dynamic pricing without explaining the why. That’s a missed opportunity. If pricing changes are tied to real benefits like faster service or more personalized experiences, those stories need to be told clearly.
Otherwise, price changes feel arbitrary. And that opens the door to distrust.
SaaS Pricing Is Changing, and So Are Expectations
I’m also seeing a major shift in SaaS pricing models. As AI becomes more resource-intensive, many vendors are moving from flat subscription fees to usage-based pricing. This aligns revenue with compute costs and customer usage, but it also introduces unpredictability for buyers.
To make this work, companies need strong onboarding, clear communication, and pricing models that scale with the customer’s growth, not just internal revenue targets. Without that clarity, usage-based pricing can feel confusing or unfair.
Regulation and Risk Are on the Rise
The ethics of AI pricing aren’t theoretical. Governments and regulators are beginning to pay close attention to how algorithms influence customer outcomes, fairness, and competition. Companies that fail to self-regulate may find themselves facing legal scrutiny or reputational fallout.
This is why I believe pricing leaders should ask not just what AI can do, but what it should do. Responsible pricing starts with human judgment, not machine logic.
What I Recommend
AI pricing should never be treated as a standalone lever. To be successful, it must be part of a broader pricing strategy that includes:
Clear communication about pricing logic and value
Alignment between pricing models and customer goals
Guardrails around data usage and personalization
Internal monitoring of performance and fairness
When done right, AI pricing can be a competitive advantage. But if we ignore the customer experience, it can quickly become a liability.
Final Thought
AI pricing is not just a technical upgrade. It is a shift in how we relate to our customers. If we lead with transparency, ethics, and long-term thinking, we won’t just protect trust. We will strengthen it.
You can read the original version of this article on Forbes Business Council.
