Irene Montero warns about AI-driven personalized pricing

Irene Montero and the dark side of AI-personalized pricing

Imagine searching for a flight and watching the price go up because your profile shows a high income or a purchase history. This practice, known as personalized pricing through artificial intelligence, has entered the public debate thanks to Spain's former Equality Minister, Irene Montero, who has warned about the risks of algorithms setting prices according to a consumer's ability to pay.

The technology is already here, but it is not new

Although the discussion focuses on the dystopian future of a programmable digital currency and social credit, the truth is that price discrimination has existed for decades. The classic example is locksmiths, who have always charged more to whoever calls in desperation at three in the morning. The difference now is the scale and precision: AI makes it possible to segment millions of consumers in real time, creating a market where everyone pays what the algorithm believes they can bear.

Political coherence or hypocrisy?

An analysis of the reactions reveals a paradox. Many of those who criticize Montero over her political past agree with her that this technology should not be used to squeeze consumers. However, the argument becomes uncomfortable when applied to pogre taxation: if the rich should pay more taxes, why not also more for the same product? For some, the answer lies in the difference between a regulatory state and an unbounded market.

The unsettling detail

While the debate centers on political rhetoric, an anonymous testimony from a former employee of a data company claims that "it is worse than you imagine." The correlation between profiling, chat control and programmable currency paints a scenario where privacy is conspicuously absent. What today is a tailored price could tomorrow be a social credit score punishing behavior. And meanwhile, locksmiths keep charging the same.