Tag: AI Risks
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Caveats and Pitfalls When Using AI for Price Optimization
1. Data Quality Is a Bigger Risk Than Algorithm Choice AI pricing engines rely heavily on historical data to train demand forecasting and elasticity models. If that data contains gaps, errors, or inconsistencies—such as outdated costs, missing promo labels, or inconsistent SKUs—the resulting price recommendations may be worse than manual judgment. Example: A model trained on…
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The Risks of Relying Too Much on AI
Artificial Intelligence (AI) has rapidly become a cornerstone in the modern business landscape. From automating mundane tasks to providing deep insights through data analytics, AI offers a plethora of benefits that can significantly enhance operational efficiency and drive growth. It’s no wonder that businesses, both big and small, are eagerly integrating AI into their strategies.…