Instacart announced it will immediately cease using AI-driven pricing tests on its grocery delivery platform. The company’s Eversight technology, acquired in 2022 for $59 million, allowed retailers to experiment with item prices to measure shopper responses.
The decision follows a study by Consumer Reports showing that shoppers sometimes paid different prices for identical items in the same store, with a basket cost variation of about 7%, potentially adding more than $1,000 in annual costs. Lawmakers and regulators also raised concerns about the practice.
Instacart stated that the tests were never based on personal, demographic, or individual user data and emphasized that prices are determined by retailers, not the company. The move aims to maintain customer trust and transparency.
Separately, Instacart was ordered to pay $60 million in refunds to settle FTC claims regarding subscription sign-up and satisfaction guarantee advertising practices. The company denied wrongdoing but cooperated with FTC inquiries, including questions about AI pricing tools. The move comes as Instacart continues to explore AI-powered services, such as the recently launched ChatGPT integration, which allows users to plan meals, build shopping carts, and complete checkout directly within the chat app.
