Machine learning and artificial intelligence have become very popular topics in the pricing community. However, many perceive these tools as overly complex and not practical to implement quickly into their existing processes. In this article, the author presents a machine learning technique called regression analysis and demonstrates simple applications that can be readily employed by pricers in any industry.
Artificial Intelligence (AI), and particularly Machine Learning (ML), will change the game for pricing. But AI’s just the tip of the iceberg. You need first to make sure that the foundations of your business - your pricing strategy and implementation plan, data, workforce, etc. - are solid so you can introduce AI constructively, as the authors explain.