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Video captures Walmart's controversial AI pricing system in action: 'Quietly replacing paper tags'

"I watched the price of something go up right in front of me as I walked up to buy it."

Photo Credit: TikTok

A customer caught Walmart's new controversial artificial intelligence pricing system in action, with prices for tableware going up as they looked at them. The video raised concerns about the implications of this technology and demand-based pricing. 

The video posted to the social platform X shared the footage alongside a caption stating "America's biggest retailers are quietly replacing paper tags with digital screens."Β 

"I watched the price of something go up right in front of me as I walked up to buy it," the shopper who made the video for TikTok says over the recording. "That was crazy."Β 

After the shopper's footage, the video cut to a news clip from "Morning Joe" on MS NOW. The clip stated that Walmart said this new pricing system is to help staff be more efficient and keep prices uniform across geographic locations. Many, however, worry that it could lead to demand-based pricing, something Instacart got caught experimenting with.

Walmart isn't the only one making the shift to digital shelf tags, either. Many retailers are using AI to adjust prices in response to online competition. Walmart has stressed that the company does not engage in surge pricing, but some see the shift as inevitable. Some lawmakers are already trying to ban these digital shelf labels, according to PYMNTS. 

Beyond pricing, environmental concerns loom large. Data centers powering AI systems like these digital tags require massive amounts of electricity and water for cooling. The impact of AI pricing on both consumer spending and the environment remains a topic of discussion, with questions about whether these uses actually serve people and the environment. 

The video of prices going up in real time drew strong reactions from viewers. 

"We Uber'd the cereal aisle," one said, in reference to Uber's practice of surge pricing. 

"There should be a law passed to prevent them from changing their prices during shopping hours," another added. "This will ultimately cause public outrage, or so I hope."

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