Store cuts waste with AI-based dynamic discounting

Dynamic discounting in action

Dutch supermarket chain Albert Heijn is trialling a dynamic discounting system that uses artificial intelligence to cut down on food waste.

The system uses an algorithm to calculate how much an item should be discounted based on its shelf life. The algorithm also considers location, bonus offers, weather conditions, historical sales trends and the amount of stock in-store.

The intention is to tempt shoppers with heavy discounts on products close to their expiry dates and to deter them from rummaging in the back of the chiller for packs with the “best date”.

Electronic price tags display the regular price and the discounted price on a given expiration date.

The technology is currently being tested on poultry and fish.