‘They can charge you more’: Experts weigh in on AI surveillance pricing

First at Five looks at how closely phones and social media monitor and impact online activity.

If you’ve ever purchased something online and wound up paying more than what a friend or partner did, experts say artificial intelligence or ‘AI’ might have something to do with it.

“What they’re doing is figuring out how much they can get out of your wallet on every single purchase that you make, and the price that you see may not be the price that I see,” said digital anthropologist Giles Crouch, who is based out of Bedford, N.S.

Crouch said the phenomenon is called surveillance pricing.

He added AI is getting better at predicting the price a person might pay for something – factoring in things like purchase history, what internet browser someone is using and even details about the smartphone or computer they are scrolling on.

“Say you’re even just trying to hail a ride-sharing service,” Crouch said. “They (AI and algorithms) can figure out your (phone) battery percentage. If your battery is five per cent, they can charge you more because they know you’ve got to make a fast decision.”

“The social contract is they give us all these apps and all these things that we use and what we give them is our data,” added retail analyst Bruce Winder.

Winder said it is a trade-off most people seem willing to make.

He added when you download an app, those potential pitfalls are included in the terms and conditions. However, most people don’t read the fine print and end up getting those personalized ads and product recommendations online.

“I might say something and suddenly an ad pops up, or I search something and there’s an ad that pops up,” Winder said. “And I think most people feel that’s not a big price to pay for having this technology at their fingertips.”

While many see online shopping as convenient, the manager of Cape Breton’s largest mall – the Mayflower Mall in Sydney, N.S. – said shopping the old-fashioned way means fixed prices and not feeling like you’re being watched when you open your wallet.

“The price is the same for everybody at the Mayflower Mall,” said mall general manager Greg Morrison. “You see everything for yourself, pick it up, look at it and purchase it and you don’t have to worry about AI tracking you down.”

However, Crouch said those algorithms can still be active if you happen to be browsing online while inside a store or even in the parking lot.

“Because they know if you’re in the parking lot and you’re searching for prices, they can charge you more,” Crouch said. “Because you’re more likely to go into the store because you’re already there.”