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Facial recognition for personalized prices? Kroger’s ‘patently evil’ AI plan ignites a firestorm

Dystopia in aisle 3!

Photo of Rebecca Leib

Rebecca Leib

Kroger's(l), Tweet about Kroger partnering with microsoft to install facial-recognition technology(r)
@soulkhan/X (Licensed)

Between its impacts on creativity, the environment, and romance, artificial intelligence has been increasingly a part of the contemporary human experience. Not everybody is happy about AI, however—for many, the increased use of the technology is a source of contention and public ire.

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Recently, the internet has been up in arms about another piece of AI-related news: Kroger will be partnering with Microsoft to install facial recognition technology in its stores, creating personalized shopping experiences with individually calibrated prices. This set off social media users, who called to ban the technology, boycott Kroger, and seriously question the ethical use of AI in corporate America.

A reaction to a Nation piece about Kroger partnering with Microsoft to create customer face recognition
@Soulkahn/X

On Jan. 22, 2025, The Nation published a piece of reporting by Ann Larson, called “Automation in Retail Is Even Worse Than You Thought.” In the article, Larson explained a “broader trend in retail toward automation and other technological shortcuts,” which she described as debilitating and punitive to both workers and low-income customers.

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The most notable of these slated “improvements” was facial recognition technology in Kroger stores, which could be used to identify customers and customize prices based on their store profiles. While some Democratic lawmakers have been pushing back on these corporate measures, the piece urged the public to do the same.

Welcome to the ‘the surveillance state’

The Nation’s X account shared the piece on Jan. 24, where it gained 3.1 million views. Immediately, commenters on the X post were critical of Kroger’s actions, saying, “No Kroger for me then. That’s a violation of basic decency and privacy. Thanks for pointing this out,” and “the surveillance state is unacceptable to the men and women of the republic. Get up to speed.”

The nation piece and reactions
@TheNation/X
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“I’m totally against this. Why would you be charged different amounts depending upon your ‘profile’?” wrote X user @pmcall. “Well, Ms shopper if you hadn’t made that critical remark about Kroger in your tweet you would be paying less. You need to get with the program & do what we want. No thanks.”

“We wanted flying cars and got AI racial profiling,” wrote @JeffersonJetson on X.

The news inspired reactions on X and Facebook as users discussed the logistics of AI use and the negative impact on the US marketplace, recommended a lawsuit or some type of legal action in retaliation for Kroger’s actions, and accused the store’s AI detection of being both classist and racist.

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Many users vowed to shop at different stores, saying “Eff you, @Kroger,” and “Think (I) won’t be shopping at Kroger,” along with “this is illegal.”

Reactions to the Nation Piece
@TheNation/X

This isn’t the first time Kroger has dabbled in surge pricing

Some users pointed out that this is not the first time Kroger has pursued advanced technology for financial gain. In 2018, the chain first partnered with Microsoft to introduce digital price tags, a screen-based method of displaying prices in stores so that employees can change prices throughout the day with ease. The measure came under criticism by lawmakers, saying it was a type of “surge pricing,” used to gouge shoppers during times of highest product need.

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In late 2024, Kroger collaborated with AI company IntelligenceNode to increasingly tailor prices to shopper experiences. This development was again criticized by democratic lawmakers, most notably Senators Elizabeth Warren (D-Mass.) and Bob Casey (D-Pa.).

Warren and Casey co-wrote a letter to the chairman and CEO of the Kroger Company, Rodney McMullen, raising concerns about how the company’s collaboration with the AI company. Later, Warren said that “corporate greed is out of control,” and urged consumers and lawmakers to fight back…a fight that, seemingly, continues to this day.

The Daily Dot has reached out to Kroger via direct message on X, Facebook and on the company website. The company did not immediately respond to the request for comment.

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