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Columbia Business School Professor Len Sherman spoke with Consumer Reports journalist Derek Kravitz about how major retailers are increasingly integrating artificial intelligence to build extensive consumer databases. Sherman explained that AI enables companies to track purchasing behavior with far greater precision, allowing them to personalize pricing, promotions, and product recommendations. While these tools can improve customer experience, Sherman warned that they also raise concerns about opaque pricing models, data privacy, and the potential for consumers to unknowingly pay higher prices. He emphasized the need for transparency as AI becomes more deeply embedded in retail operations.
