For B2B firms in industries like wholesale, distribution, and manufacturing, the idea that AI in pricing is a magic black box can quickly become an investment sinkhole and a strategic dead end. Before thinking about AI, you must confront the two beasts that kill nearly every pricing initiative: Cross-Functional Chaos and The Profitability Mirage. Fancy algorithms do not drive pricing success—getting the basics right is.

Enhanced by AI and machine learning, price elasticity modeling enables businesses to optimize pricing strategies by understanding how customer demand reacts to price changes. Unlike traditional methods that often overlook the complexities of consumer behavior, these advanced models provide data-driven insights to set prices that maximize revenue.