Can machine learning help automate the pricing process?

Machine learning can be used to analyse past sales data in order to forecast future sales, depending on proposed price brackets. Advanced algorithms systematically analyse not only current market trends and the prices being offered by competitors, but also the constantly changing needs of customers themselves. Based on factors like this, prices are determined in a completely automatic manner, enabling the maximisation of profits.

The deployment of a machine learning system will not entirely replace humans’ competence and expert decisions. Such systems are capable of coexisting and even collaborating with teams of people. Interestingly, it is even possible to configure the systems so as to compare the effectiveness of machine-based methods with that of human actions.

Will a machine always outperform a human? Not always, but it can in the vast majority of cases. In all cases, however, the machine’s mode of “reasoning” will be objective and free of human weaknesses. A system based on machine learning will operate without ever suffering from tiredness, changes of mood or momentary emotions. In the longer term, then, it will certainly make more right decisions than a team of humans.

Are you ready for solutions of this type? Or do you think that human intuition and expert knowledge guarantee greater accuracy in decision-making? Let’s talk about it – we are very interested to hear your views. Get in touch with us!