This article is focused on how AI is beginning to rapidly reduce the information advantages which was allowing companies to overcharge consumers. AI gives people price comparisons, diagnostic help, and is able to weaken the normal imbalance between customer and consumer. This article reveals that AI is going to help people with identifying quality, make better/more informed choices, avoid hidden issues. Markets are improving but industries such as home repairs, law, or real estate still have a large information gap that costs consumers millions to billions of dollars every year.
AI is already prevalent and working in some apps used to compare prices, report issues, etc. But the article also highlights that business will implement AI which creates a competitive environment for both sides. The "Rip Off Economy" is not gone but is definitely declining as of late.
https://www.economist.com/finance-and-economics/2025/10/27/the-end-of-the-rip-off-economy
This is a great point I've never thought of. AI feels like a major turning point for consumer protection. When people can diagnose issues or compare quotes instantly, it forces companies to be more honest. The competition created by businesses adopting AI themselves could make markets even more efficient over time.
ReplyDeleteIt’s interesting how quickly AI is shrinking the information gap between consumers and companies. If people can compare prices and spot issues more easily, it makes sense that industries built on information advantages are starting to feel pressure. Even if the “rip-off economy” isn’t gone yet, it definitely seems like AI is pushing it in that direction.
ReplyDeleteIt will be interesting to see how AI plays a role in guaranteeing the best price for the consumer in the coming years. If AI is as effective as it claims to be at providing the best price for the consumer, I wonder how this will affect our competitive markets. If everyone can get the same good for the "best" price, I don't see how the markets will be able to succeed if there is no competition.
ReplyDeleteAI cutting down the “rip off” factor by giving people better price and quality info is a really interesting trend. Do you think it will ever close the gap in areas like home repair and real estate where people still feel totally outmatched?
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