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How to Use Generative AI for Pricing

Maxime Cohen

MIT Sloan Management Review2026https://doi.org/10.63383/kqje3927article
FT50AJG 3ABDC A
Weight
0.37

What the paper says

Generative AI is transforming retail pricing decisions by providing an accessible and low-cost alternative to traditional pricing algorithms. Unlike traditional approaches, LLM-based pricing relies on natural language prompts, not custom code and historical data. However, LLM-based pricing introduces challenges around consistency, explainability, and potential biases. Implementation examples demonstrate how to prompt LLMs and use their recommendations to optimize product and service pricing.

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https://doi.org/https://doi.org/10.63383/kqje3927

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@article{maxime2026,
  title        = {{How to Use Generative AI for Pricing}},
  author       = {Maxime Cohen},
  journal      = {MIT Sloan Management Review},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.63383/kqje3927},
}

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How to Use Generative AI for Pricing

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.