Algorithm-Driven Pricing and Why It’s Getting Attention

Inflation has been one of the defining economic concerns for New Yorkers over the past year. In multiple public polls during 2025, it ranked as the top issue for voters, ahead of crime, housing, and immigration.

Most conversations about inflation focus on interest rates, government spending, and supply chains. But another factor has increasingly entered the discussion: the growing use of artificial intelligence and algorithms to adjust prices in real time.

Often called dynamic pricing, this technology allows businesses to change prices automatically based on factors such as demand, time of day, inventory levels, or consumer behavior. As these systems become more common across industries, policymakers are beginning to look more closely at how the technology works and where it is being used.