Smart Shopping in the AI Age: How Tech is Changing Grocery Deals

Grocery shopping is not what it used to be. Thanks to artificial intelligence (AI), stores are getting smarter about how they price items and target shoppers. This shift is changing the way people save money and how they think about their purchases.

A New Way to Save

For some, like Kimberly Roberts, saving money on groceries is a way of life. She has always been good at finding deals, but her methods have changed over time. She used to clip coupons, but now she relies on apps to find the best prices. This is just the beginning of how AI is changing the grocery game.

AI in the Aisles

Stores are using AI to do more than just set prices. They are using it to:

• Manage inventory
• Design store layouts
• Track what shoppers buy

Nearly 60 percent of U.S. consumers use digital coupons, and many say these deals influence what they buy. As AI becomes more common, stores are finding new ways to personalize discounts and predict demand.

Retailers Embrace AI

• Walmart is adding digital shelf labels to thousands of stores. These electronic tags make it easy to update prices and manage inventory.
• Kroger has been using similar technology since 2018.
• Sam’s Club is using overhead cameras to scan carts as customers leave, making checkout faster and more efficient.

Concerns About Dynamic Pricing

But with these changes come concerns. Some lawmakers warn that digital shelf labels and new pricing systems could lead to dynamic pricing, where grocery prices change multiple times a day. This could drive up profits for stores but leave consumers paying more. Kroger has denied using dynamic pricing, but the worry remains.

Experts say dynamic pricing is not new. Gas prices change throughout the day, and people are used to that. But seeing the price of milk change multiple times a day is a different story. Some stores are even using AI with facial recognition to identify returning customers and tailor prices to them. This raises questions about how far this technology will go and how it will affect shoppers.

Types of AI-Driven Pricing

There are two main types of AI-driven pricing:

1. Digital Shelf Pricing – The price on the tag can be updated quickly and is the same for everyone in the store.
2. Personalized Pricing – The amount a shopper pays can vary based on information gathered through loyalty cards, store apps, or browsing history.

The concern is that algorithms might quietly raise prices for certain customers to increase profits.

Balancing Benefits and Risks

AI can be used in ways that help some shoppers and disadvantage others. It all depends on how comfortable people are with retailers collecting and analyzing their data. Some may find this experience rewarding, getting good deals and saving money. Others may be concerned about being tracked and how their information is used.

Consumer advocates say AI can benefit shoppers if retailers use it responsibly. The real issue is what data companies collect, how they use it, and whether they share or sell it. Currently, there is no federal privacy law governing how retailers collect or use customer information, leaving many questions unanswered.

Tips for Concerned Shoppers

For those concerned about AI-driven pricing, experts suggest:

• Opting out of loyalty programs
• Paying with cash when possible
• Adjusting privacy settings on phones, apps, and browsers

Kimberly Roberts’ Success Story

Kimberly Roberts, who has been saving money for years, is comfortable with the direction stores are heading. She encourages families to start small by learning store sales cycles and focusing on one grocery store and one drugstore to build a consistent savings routine.

Over the years, Roberts has shared her strategies with others, teaching classes in her community to help families stretch their grocery budgets. Her own savings have added up, allowing her to purchase a car in cash. While some may see her approach as extreme, Roberts believes it has led to good results.