3 Main Use Cases of AI Pricing that Beats Traditional AI Models
Why is AI in pricing slowly entering the market? How has it grown into existence?
There are multiple frustrations pricing teams undergo to constantly set new prices and respond to market changes. Tasks that include such minute details need automation while using real-time data for pricing accuracy.
The traditional AI pricing models that businesses use result in suboptimal recommendations. It lacks the dynamicity that today’s pricing solutions have. The selective usage of relevant information, the reliance on real-time datasets and more are what make it stand out.
Artificial Intelligence (AI), especially Generative AI, is transforming how businesses approach pricing, enabling smarter, faster, and more adaptable strategies. In this blog, let’s talk about the 3 main use cases of AI in pricing and how it can make a resounding impact on pricing decisions.
1. Dynamic Price Setting with Real-Time Data
Traditional AI models have one source to rely on for price optimisation - historical data. Today’s AI pricing models use their advanced algorithms to use real-time data from external sources. For example, they study:
- The actions that competitors take,
- Any market event that can impact buying behaviour, or,
- Changes in supply and demand.
This shift in the new AI pricing model's capability allows companies to respond to market changes with accuracy. It also lets companies make strategic decisions instead of going with the flow. For example, if a competitor lowers their price, AI can recommend an adjustment to maintain competitiveness. This dynamic approach ensures pricing strategies remain agile and relevant in ever-changing market conditions.
More so, this ability also extends to making accurate predictions for the future. For this, you must understand your product's price elasticity. Price elasticity measures how demand shifts when the product's price changes. SYMSON's AI and ML tools analyze all products and automatically recommend the best price to optimise revenue or margins.
2. Price Getting and Contract Compliance
Managing contract terms and ensuring compliance has traditionally been a manual task. Important information is often buried in PDFs or other documents, making it hard to track and act upon.
AI changes this by automating the extraction and analysis of contract terms. It can:
- Identify compliance gaps
- Highlight opportunities for margin recovery
- Reduce the risk of missed clauses or penalties
For example, a company might recover revenue by ensuring discounts or rebates align precisely with contract terms. By automating this process, businesses save time and boost profitability.
3. Sales Enablement and Dynamic Explanations
AI pricing doesn’t just help pricing teams—it also empowers sales teams. By offering real-time insights and clear explanations for pricing decisions, AI strengthens the trust between sales and pricing functions. Some key benefits in the sales domain include:
- Automating the creation of sales materials,
- Reducing the time needed to prepare marketing collateral,
- Helping sales teams confidently explain pricing strategies to customers.
For instance, a sales team equipped with AI-driven insights can better justify pricing based on market data or value-added benefits, leading to stronger customer relationships and faster deal closures.
SYMSON’s AI Pricing Tool is No BlackBox
While choosing a pricing solution, it’s critical to understand the logic behind each recommendation. In Symson, we believe this helps team members learn and become HyperlearningTM organisations. The synergy of human judgement and a machine’s algorithm helps you make the right decision and set the right price at the right time.
From competitor price monitoring to dynamic pricing, Symson grows not just margins but a supportive expert partnership as well.
AI’s ability to leverage data, automate processes, and generate actionable insights is reshaping pricing operations. Whether it’s adapting prices in real-time, ensuring contract compliance, or enabling sales teams, AI allows businesses to stay ahead in a competitive landscape.
Curious about how AI can revolutionize your pricing strategy? Reach out to explore how these use cases can apply to your business.
Do you want a free demo to try how SYMSON can help your business with margin improvement or pricing management? Do you want to learn more? Schedule a call with a consultant and book a 20 minute brainstorm session!
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