Pricing articles

mcdonald mcdonalds surge pricing

McDonald's has been using AI to decide how much you should pay for a Big Mac

AI pricing tool can make a Big Mac cost $1.20 more just two miles away
Recap: McDonald's has made several attempts to deploy AI across its businesses over the past few years, not all of them successfully. A recent extensive report sheds light on one area where the fast-food giant has had a long and potentially lucrative history with machine learning and algorithms: dynamic pricing.
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AI is getting cheaper faster than almost any technology in history

One AI task went from $0.30 to $0.0004 per question in a year and a half
Bottom line: AI models are getting cheaper to use at a pace that could reshape the advanced software market. A report from research firm Epoch AI finds that the cost of reaching a given level of AI performance has fallen by nearly 50% per quarter, or about 13 times per year. That is a faster rate of decline than the cost curves seen in lithium-ion batteries, DNA sequencing and computing hardware.