Artificial intelligence (AI) is beginning to reshape fashion retail by changing not only how consumers shop, but how prices are set and adjusted in real time. An RMIT expert explains how data‑driven pricing systems and AI‑powered shopping tools are transforming retail experiences.
Dr Aayushi Badhwar, School of Fashion and Textiles
"Rather than relying on traditional cycles of fixed pricing and end-of-season discounts, retailers can now use data-driven systems that continuously respond to demand, browsing behaviour, and purchase intent.
"This shift introduces a more dynamic and personalised pricing environment, where the same product may be offered at different prices depending on context and timing.
"At the same time, 'agentic commerce' is emerging, with AI tools acting on behalf of consumers to monitor products, track price changes, and even complete purchases once certain conditions are met.
"While this offers greater convenience and a sense of control, it also creates a tension. By setting preferences and willingness to pay, consumers effectively feed data back into the system, which can influence how prices are optimised in the future.
"The result is a feedback loop where both retailers and consumers are guided by algorithms, making pricing less transparent and more complex to navigate.
"For consumers, this means shopping decisions are increasingly shaped by unseen systems rather than deliberate choice.
"While the efficiency gains are clear, there is a risk that automated convenience encourages higher levels of consumption in an already resource-intensive industry."
