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Journal Article
Who Uses AI for Pricing?
Firms are increasingly using artificial intelligence (AI)-enabled algorithms to help set prices. While firms do not typically disclose whether they use AI for price-setting, we can measure their use of this technology through their public postings for jobs related to AI pricing. We find that larger, more productive firms are more likely to adopt AI pricing technology. This adoption, in turn, allows these firms to grow faster and become more profitable.