Tag: revenue strategy
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Caveats and Pitfalls When Using AI for Price Optimization
1. Data Quality Is a Bigger Risk Than Algorithm Choice AI pricing engines rely heavily on historical data to train demand forecasting and elasticity models. If that data contains gaps, errors, or inconsistencies—such as outdated costs, missing promo labels, or inconsistent SKUs—the resulting price recommendations may be worse than manual judgment. Example: A model trained on…